Ooops! A hasty decision.

barryjohnsmith

I've just realised I've made a big error in agreeing to a debt consolidation loan for £25k. We've looked again at our finanaces, and with the help of a little legacy that has come our way, we've realised we can now manage our repayments and pay off a big chunk of our debt without the consolidation loan.

Our application has been provisionally approved and we have signed contracts, deeds, etc. and the money should be through in a couple of weeks. Is it too late to backtrack now?

We spoke to the broker and he says we're already bound by the contract so we'll have to take the loan

tightbarsteward

You usually have a 7 day cooling off period after signing, during which time you can cancel the loan. Some providers cooling off periods may vary.

http://www.home.co.uk/guides/loan_glossary.htm?cool
http://www.moneyextra.com/dictionary/cooling-off-period-004050.html

nomoneytoday

If you haven't received the cash then I would cancel the loan application. The broker is after their commission...

regularsaver1

you may lose an arrangement fee if there was one, but there may have been a cancelation period

barryjohnsmith

I've contacted the finance co. directly and they've agreed to discard the application. No doubt I'll hear back from an angry broker later today wanting the arrangement fee of £400! That was conditional on the loan being paid, which it never was, so I am not going to cough it up without a fight. I'm outside the cooling off period (they specifically asked me to borrow over 25k so I'd be outside the terms of the CCA) - so I guess if they demand it I will have to pay?

Dithering_Dad

I should sit tight and see if they can be bothered with legal action to get back the 400 quid. If they keep hastling you then offer them half the amount, they may think that's better than nothing and accept (especially if they stand to lose most of the 400 quid anyway through solicitors fees, etc.)

barryjohnsmith

Just to let you know they've decided to leave it. Had the long-expected phone call earlier, asking me why I wanted to cancel, offering me lower repayments, and when they realised I wasn't interested they demanded their fee. I told them they'd have to sue me for it. There was some grumbling, and then he said OK, we've waive it in this instance!

MABLE

Reminds me of LLoyds when I was applied for a loan of 25k recently at 6.4 percent but changed my mind. The guy in the bank called Tariq started throwing his toys out of his pram and called me a time waster. They employ such nice people in banks these days!!!!!!!!