We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Advice needed re cancelling a recent loan agreement
Options
Hugh_Skint
Posts: 16 Forumite
in Loans
Hi,
I need some advice please , about cancelling a loan.
A member of my family, who is a single mum on a low income, took out a loan today for £1,500. This is to go towards rent arrears so that she can go ahead with a move.
It turns out that she found it difficult to get a loan and accepted one with a big bank although the APR is 41%.
I have suggested that as my credit rating is good , I borrow the money on a 0% credit card and she pays me back.
The problem is, can she cancel the loan agreement which was signed today? There was nothing about cancellation in the small print .
Thanks for any advice
Ima Skint
I need some advice please , about cancelling a loan.
A member of my family, who is a single mum on a low income, took out a loan today for £1,500. This is to go towards rent arrears so that she can go ahead with a move.
It turns out that she found it difficult to get a loan and accepted one with a big bank although the APR is 41%.
I have suggested that as my credit rating is good , I borrow the money on a 0% credit card and she pays me back.
The problem is, can she cancel the loan agreement which was signed today? There was nothing about cancellation in the small print .
Thanks for any advice
Ima Skint
0
Comments
-
-
Firstly, thank you for the link Grumbler.
The link said,
'In a couple of limited circumstances a debtor will have a "cooling off" period under a regulated consumer credit agreement.
Firstly where face-to-face negotiations take place and the debtor signs the agreement away from the creditor's premises (eg. at home), a debtor has a post-contract "cooling off" period in which he/she can cancel. '
The loan agreement was signed face-to-face at the lender's premises. Does that mean that there is no 'cooling- off ' period ?
Ima0 -
This might give you more detail. I looks as though there is a five day cooling off period for this instance, I am not sure though if the list means they all have to happen or any one of them can kick in the five day period.
http://www.trafford.gov.uk/cme/live/cme982.htm0 -
I don't believe that there is any cooling off period if you sign on the lender's premises.
But the loan must have early settlement terms - if these specify that no penalty interest is payable, it might not cost anything extra to settle now in any case.0 -
Thanks Grumbler, Bossyboots and Marky Mark for your help.
I will check the small print for early settlement fees.
Thank you
Ima0 -
Just out of curiosity which bank was it? I can't believe a big bank would charge an APR of 41% on a personal loan.
Eric0 -
Hi Eric,
The loan was taken out with Blackhorse at Lloyds / TSB. The APR is 41% and if the payment is late, the charge is £25 for the first nine days.
Ima0 -
Good News - the bank cancelled the loan wthout a charge or early settlement fee.
Ironic but my application for the 0% card was refused ... I followed the advice on this site and requested the credit info and have kept calm, knowing that I can add additional info e.g. American Express ' lost' my monthly payment in March; my bank statement shows that they received it but it was not credited to my account. I wonder if the missing payment and late payments they have since charged will show up on the credit file?
Ima Skint0 -
Hi ,
Firstly, thanks to everyone who replied and the advice available on the site. It is a relief to get this sorted out.
I paid the debts using my overdraft facility (free with Alliance and Leicester), and will transfer it to my hubby's Egg card as it offers an annual anniversary offer of 0% for five months. Someone at Egg helpfully suggested that at the end of the five months, I transfer it to my Egg card when there is an anniversary offer. This is all so much cheaper then some of the other offers I considered; I nearly used the cheques issued with my Co-op credit card, then read the small print and it seems to be 2% of the total amount and £2 for each cheque used then APR of 5.9%.
I used to be sooo naive about borrowing money and didn't realise the huge differences in costs.
Ima0 -
You can't transfer it from one Egg card deal to another. You'd have to do it via your current account or another card (neither of which is very difficult).0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.7K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards