Withdrawal from the loan agreement – legal basis
The legal basis that allows the borrower to withdraw from the loan agreement is the Consumer Credit Act. It defines consumer credit as a product that was granted to the borrower solely for private purposes as part of the business of the lender. The maximum loan amount is PLN 255,550 (or its equivalent in a foreign currency).
Free payday loans are not consumer loans under the Act. It is clear from the regulations that consumer credit is an obligation that bears interest and incurs additional costs.
According to the law, you have 14 days from the time you sign the loan agreement to terminate it. However, this is the minimum time imposed on lenders by the legislator. In practice, banks can extend this time as you like – you will find this information in the loan agreement.
Credit intermediation agreement – who is a financial intermediary?
In the light of the regulations, a financial intermediary is an entrepreneur who, in the field of his business, obtains financial benefits by carrying out activities related to the preparation, offering or conclusion of a loan agreement. Therefore, if the lender is a private company, not a financial institution, then you can have a big problem with the cancellation of the loan.
You’ll find at Totalmoney.pl: Cash loans – take cash for any purpose
Withdrawal from the loan agreement – how to do it?
If you want to cancel the loan, you must provide the bank (in person or by post) with a statement of withdrawal from the loan agreement. When completing the statement, you do not have to give reasons for resignation, and you will receive a withdrawal template, along with other documents, when you sign the loan agreement.
The request for withdrawal initiates the procedure of resignation from the loan, and you have 30 days to return the borrowed amount with interest due to the bank. The lender has no right to charge you any additional fees in this respect.
Credit agreement – consequences of withdrawal from the agreement
After withdrawing from the loan agreement, it loses all its legal force. This means that the entries contained therein are no longer binding on either party.
You must remember that until you repay the entire borrowed amount, you will have to pay the bank interest due for each day on which the funds were in your account.
Loan agreement – elements of the loan agreement
The framework credit agreement is a document that specifies in detail who grants the loan and to whom. Pursuant to the Act, credit agreements should contain such elements as:
- Data of both parties – name, address and address of the borrower as well as the name and address of the bank’s seat.
- The purpose for which the loan was granted.
- Loan amount and currency.
- Repayment date and schedule.
- The loan interest rate and the conditions for its change – in the event of a change, you will have to sign the annex to the loan agreement.
- All additional fees to be paid in connection with the launch and servicing of the loan.
- Information on how to withdraw from a loan agreement.
The loan agreement and its elements are slightly different if you borrow money in a currency other than PLN. Then the contract should additionally specify the method and date of determining the exchange rate on the basis of which the loan amount is calculated.
Clauses not allowed – what is it?
You’ve probably signed more than one contract in your life – how often have you been able to negotiate its terms? This applies to contracts prepared by banks, telephone operators, developers, insurance companies, travel agencies, gas and electricity suppliers, etc.
For the consumer, signing a standard contract involves the risk that the trader will impose on it clauses that will not be favorable to him. That is why the Civil Code assumes that provisions which have not been agreed individually do not bind the consumer if they “shape their rights and obligations in a manner contrary to decency and grossly violating their interests”.
A collection of all prohibited clauses can be found in the Register of Prohibited Clauses of the Office of Competition and Consumer Protection. The most common of them include those that:
- order the client to use other bank’s financial products,
- they pass on to the consumer the costs of the bank’s operations.
An interesting text on the subject of prohibited clauses (so-called abusive ones) can be found on the UOKiK website. Check it out if you suspect that the contract you signed contains such provisions.
Credit agreement – take credit with your head!
The signing of the loan agreement takes only a moment, but the effects of a bad decision can be felt for many years. Fortunately, thanks to the Consumer Credit Act, we have the right to withdraw from the loan agreement. However, it should be remembered that for our reckless approach to this topic, we can pay the bank some kind of “compensation” in the form of interest for each day of use of the loan.