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Cancelling Loan & Repayment

bamgbost
bamgbost Posts: 484 Forumite
Part of the Furniture 100 Posts Photogenic Name Dropper
Not that I plan on doing this, but out of curiosity.

If you take a loan, and cancel it within the 14 day period.You are normally due to repay the loan + any interest occurred within a further30days.
What happens if after those 30days, you do not pay back infull? (either totally or partially).
Does the loan proceed, as per the initial signed agreement? Or do the banks startchasing you (+ eventually send debt to debt collectors).

Any ideas?
365 Day 1p challenge - £371.49 / 667.95
Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC

Comments

  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    If you dont re-pay the loan plus interest (if any) then the loan will not be cancelled they will take payments on direct debit as the original contract unless you cancel the DD and then the banks will chase you.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    also this has a very high chance of a fraud marker
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • BlueKiev
    BlueKiev Posts: 11 Forumite
    If you let the bank know within the 14 day cancelation period, you then have a further time period to repay, no interest should be applied. If you don't pay it back with the time period after you have told the bank it will automatically fall into arrears.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    chanz4 wrote: »
    also this has a very high chance of a fraud marker

    Think you mean default on your credit file.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • BlueKiev
    BlueKiev Posts: 11 Forumite
    Foxy-Stoat wrote: »
    Think you mean default on your credit file.


    No it won't show as a default.
  • Nearlyold
    Nearlyold Posts: 2,418 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    BlueKiev wrote: »
    If you let the bank know within the 14 day cancelation period, you then have a further time period to repay, no interest should be applied. If you don't pay it back with the time period after you have told the bank it will automatically fall into arrears.


    Sorry Blue Kiev but you do pay interest the rules are:-


    Under the European Credit Directive legislation which came into effect 1st February 2011 you can withdraw from a credit card or loan agreement within 14 days of signing up to it. You must, however, repay the credit and pay interest for each day the credit was drawn down
This discussion has been closed.
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