Cancelling a Credit Agreement within the Cancellation Period

UsetheFORCE

If you enter into a Credit Agreement, you are normally given 14 days in which to Cancel the Agreement.

Can anyone clarify:

Is the agreement treated as though it NEVER existed?

Do any obligations still exist, bar repayment of the original sum borrowed?

bengalknights

Yes it doesn't exist of you cancel only the search record

DevCoder

The credit search footprint will exist, other than that everything else is null/voided.

UsetheFORCE

Thanks for your replies, can I clarify, does anyone know what happens regarding any sums paid to you... i.e. is it the principal plus interest that needs repaying? I believe you get 30 days to repay from the date of cancellation???

jonesMUFCforever

No you don't - you need to repay in full before the end of cancellation period.

tonycottee

I took out finance for a car in March, which I then cancelled. As you say, I had 14 days to notify them that I wanted to cancel without penalty.
Once I had notified them, I then had 30 days in which to settle the account.
The only extra money I had to pay was about £1.40 per day interest until I settled.

UsetheFORCE

tonycottee wrote: »

I took out finance for a car in March, which I then cancelled. As you say, I had 14 days to notify them that I wanted to cancel without penalty.
Once I had notified them, I then had 30 days in which to settle the account.
The only extra money I had to pay was about £1.40 per day interest until I settled.

Thanks, that is now my understanding, I was hoping someone who has been in that position would come along!

Regards

jonesMUFCforever

UsetheFORCE wrote: »

Thanks, that is now my understanding, I was hoping someone who has been in that position would come along!

Regards

That's not what you asked in post 1.
If you do not repay within the cancellation period you wil be charged interest - this of course will depend on the amount borrowed and the interest rate charged.

tonycottee

You are charged interest even if you repay during the cancellation period.

UsetheFORCE

After doing further research, my understanding is that I would have 14 days from the day after the agreement was entered into to cancel it.

I would then have no more than 30 days after the date of cancellation in order to repay the Principal and interest for the period of time I had the Principal Amount. This interest would be on the same basis as the interest being charged when the agreement was taken out.

Is this how you view it?

tonycottee

That's right. Have a look in the T&C's of your agreement, and it should tell you how much interest per day you should pay.
My agreement was for £6500. I notified them I wanted to cancel after 8 days, and then settled another 7 days after that. I paid about £1.40 a day on top of the original sum I borrowed.