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After signing for a loan, cooling off period?

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After signing for a loan, cooling off period?

edited 30 November -1 at 1:00AM in Loans
6 replies 3.4K views
Major_IngramMajor_Ingram Forumite
4 posts
edited 30 November -1 at 1:00AM in Loans
After signing for a loan (£1000) is there a period when you can cancel the agreement?

TIA

Replies

  • ReaperReaper Forumite
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    Normally yes. A brief explanation can be found here.
  • Many thanks Reaper - I will look into it.

    Hopefully I can - I think I have made a boo-boo.

    Bit embarrassed really.
  • ReaperReaper Forumite
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    On looking into it further it sounds as though you may not always be able to cancel. Watchdog has some more information here.

    The rules are designed to protect you from high pressure salesmen rather than changing your mind. Best to start by asking the company you got the loan with.
  • I must say it looks hopeful if nothing else.

    Think I might be busy Monday >:(
  • "Can I cancel my loan application if I decide not to go ahead for any reason?

    If you decide you want to cancel your loan application once you have made it, you can do so within a certain period of time set by the loan company.
    They will provide you with a written notice telling you how to cancel and how long you have to cancel. To cancel your application you will have to write to the address given on the notice.

    All loan companies will have a specific ‘cooling off’ period that they offer the customer – but in conjunction with the Consumer Credit Act they are legally obliged to offer you 14 days. It is much easier to cancel your loan if you change your mind before the funds come into your account. If you change your mind having received the funds, you will have to contact your loan provider and arrange for you to repay the loan in its entirety. It is possible you may have to pay a penalty but this will depend on your loan provider so read the terms and conditions for your specific agreement for more information."


    Every UK based loan company I can find has this info somewhere. The agreement makes reference to the Consumer Credit Act 1974, so I will remain hopeful - but slightly embarrassed.
  • hopefulfoolukhopefulfooluk Forumite
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    ahem is that your final answer?
    Getting married to fellow MSE-er Lazymoo on 5/2/11 (brought forward by 8 months!!) :) :grinheart

    Unsecured debt: £0 :D (and intending to keep it that way now...)
    Mortgage balance: £153,308 (MFW once our wedding bills are paid!)
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