Cancelling a loan - any advice???

aimingforadebtfreelife

Hi all,

Had a call from my brother in law who is in a bit of a state. He went to his bank to try and sort out some money problems and came out with a loan!! Not much details yet as he is coming over tonight to talk to me - all I know its 16.5% apr and he has phoned them up to say he cant afford it. Their answer was "There's no cooling off period and to cancel it will cost you £500!!". I'm hoping they have sold him PPI as he is only a temporary worker and can challenge that - if thats the case and he has got PPI missold does anyone know if loan can be cancelled that way????

Many thanks in advance.

_Andy_

Why on earth did he accept a loan he couldn't afford?

aimingforadebtfreelife

from what I can gather it was a pushy bank clerk who swamped him with figures and got him muddled up. He has said it has got PPI.

marshallka

aimingforadebtfreelife wrote: »

from what I can gather it was a pushy bank clerk who swamped him with figures and got him muddled up. He has said it has got PPI.

You can cancel the agreement if:-

• you signed it anywhere other than on the premises of the trader or creditor; and
• you discussed the credit face-to-face with the trader or creditor before you signed the agreement.

This is on the Citizens advice site.

Also here
http://www.moneyextra.com/dictionary/cooling-off-period-004050.php


A cooling off period is defined as the period of time you're allowed, after signing an agreement, to cancel it without incurring a financial penalty.
Legislation regarding cooling off periods is complex. Indeed, there are five main pieces of legislation consumers can call upon if they wish to back out of contracts they've entered into. It should be noted that cooling off periods may vary from 5 days to 30 days, depending on the type of product agreement reached and how the agreement was reached.
The best known protection for consumers is the Consumer Credit Act 1974. Here, regulated credit agreements may allow you to cancel the agreement should you change your mind. Worth pointing out is that there is a cooling off period in which you can change your mind. Assuming you signed the agreement anywhere other than on the premises of the trader or creditor; and you discussed the credit face-to-face with the trader or creditor before you signed the agreement, then you may cancel the agreement.


Also worth noting is that the PPI may be cancelled anytime up to 30 days if it included life insurance.

Get the PPI cancelled now.....this can be cancelled within 14/30 days usually. You do have a right to cancel this.