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Please let me know what you think is meant by this

ukfunky
ukfunky Posts: 10 Forumite
What do you think is meant by this on a loan taken today..

You have the right to withdraw from the credit agreement within 14 calender days after you receive written confirmation that we have executed the agreement. If you withdraw after receiving credit, you must repay the credit within 30 days and repay any interest due on the credit.
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Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Prett much as its says - you have 14days to change your mind - which they have to give you legally.
    If they have paid the loan to you before the 14days are up but you still decide to cancel between then and the 14day timescale then you have 30days from the date you received the loan to repay the loan in full and a pro-rata interest for the amount of time you had the loan. So if you borrow £1k at 12% then cancel the agreement and repay the money you need to pay back the full £1k and the interest of approx £10 on top.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • ukfunky
    ukfunky Posts: 10 Forumite
    Tixy wrote: »
    Prett much as its says - you have 14days to change your mind - which they have to give you legally.
    If they have paid the loan to you before the 14days are up but you still decide to cancel between then and the 14day timescale then you have 30days from the date you received the loan to repay the loan in full and a pro-rata interest for the amount of time you had the loan. So if you borrow £1k at 12% then cancel the agreement and repay the money you need to pay back the full £1k and the interest of approx £10 on top.

    This is what I thought - when calling HSBC customer services to confirm this, they said that you can cancel within 14 days and money needs to be paid within 14 days and I'd pay no interest...although the agreement states the above...

    Based on the above info..I took the loan today/signed agreement today..so I'd have 14 days from today which would be up until 6th June to Cancel and 30 days to repay the original loan amount + 30 days interest...and 30 days after cancelling on 6th june would take me to 5th July..does that sound about right?
  • Tixy
    Tixy Posts: 31,455 Forumite
    I suppose the thing to clarify is the 30days - whether its 30days from the date you receive the loan, or 30days from the date of the original signed agreement. I think it reads as the former but if you are thinking of doing it then I think I would double check.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Xbigman
    Xbigman Posts: 3,917 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    This all depends on what you are trying to achieve.

    It is possible to borrow money and repay it so fast it costs nothing. But the way its done, with transfers taking anywhere from 3 to 8 days and exactly how long an agreement was in the post being variable, its frankly a waste of time. You don't get the money for long enough to make any real use of it.
    If you want cheap borrowing try a 0% on purchases credit card.
    If you want a very short term loan try a lender (IE Lloyds TSB) that allow overpayments without penalty, then pay off nearly all the loan as soon as you have the money available.


    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • ukfunky
    ukfunky Posts: 10 Forumite
    Xbigman wrote: »
    This all depends on what you are trying to achieve.

    It is possible to borrow money and repay it so fast it costs nothing. But the way its done, with transfers taking anywhere from 3 to 8 days and exactly how long an agreement was in the post being variable, its frankly a waste of time. You don't get the money for long enough to make any real use of it.
    If you want cheap borrowing try a 0% on purchases credit card.
    If you want a very short term loan try a lender (IE Lloyds TSB) that allow overpayments without penalty, then pay off nearly all the loan as soon as you have the money available.


    X

    I just need the monies for upto a month so I thought that what I have stated that is in the t's and c's on original post means that as long as cancel within 14 days have 30 days to repay the money?
  • Xbigman, do you mind me asking how much you spend on food a month. Your signature says Eat Properly but the Debt Free Wannabe advice is to spend as little as possible. I try to eat healthy and this costs me £250 a month for myself only and I feel guilty about this even though it's healthy stuff and keeps my weight in check.
    Sorry to go off topic, looked for a way to PM you but couldn't find it.
  • nelly12
    nelly12 Posts: 208 Forumite
    Part of the Furniture 100 Posts
    Tixy wrote: »
    I suppose the thing to clarify is the 30days - whether its 30days from the date you receive the loan, or 30days from the date of the original signed agreement. I think it reads as the former but if you are thinking of doing it then I think I would double check.

    The CCD regulations which this refers to states that 'you have 30 days to repay the money from the date that you notify the finance company'.

    The 14 days legally starts from when you have a legal agreement in your possession, ie a copy signed by the finance company.
  • ukfunky
    ukfunky Posts: 10 Forumite
    nelly12 wrote: »
    The CCD regulations which this refers to states that 'you have 30 days to repay the money from the date that you notify the finance company'.

    The 14 days legally starts from when you have a legal agreement in your possession, ie a copy signed by the finance company.

    Thanks - so this means...I took the loan and got the agreement on 24th May - so if I notify them by Monday 6th June (14th day), I then need to repay the money by Tuesday 5th July (30 days after notifying them on 6th June)..

    Is this right?
  • nelly12
    nelly12 Posts: 208 Forumite
    Part of the Furniture 100 Posts
    ukfunky wrote: »
    Thanks - so this means...I took the loan and got the agreement on 24th May - so if I notify them by Monday 6th June (14th day), I then need to repay the money by Tuesday 5th July (30 days after notifying them on 6th June)..

    Is this right?

    Ye that's right. Good luck.
  • ukfunky
    ukfunky Posts: 10 Forumite
    nelly12 wrote: »
    Ye that's right. Good luck.

    thanks, is there somewhere where i can read this in ccd (just in case my bank gives me problems - I can quote this to them..)
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