cancelling an online loan

ebz1982

Hi there!

Can anyone tell my rights when it comes to cancelling a personal loan when it was all done online? I originally applied for a loan with lloyds at a rate of 9.8% apr. The whole process was done online and I was accepted and the money was transferred instantly into my account. I have now been offered the same amount but at an apr of just 6.8% with Tesco personal finance. I desperately want to cancel the Lloyds loan and accept the Tesco offer but don't know where I stand when it comes to cancelling as I am now 2 days past the 14 day cooling off period. As I still have not received,and therefore not signed a contract for lloyds, am I still tied into the agreement??

truCido

Why dont you phone up Lloyds and ask? As they've sent you the money I'd say you must of entered into an agreement as without an agreement I doubt very much they'd of put the money in your account.

Rafter

Lloyds (and any others) can now do the whole transaction online without getting you to sign a piece of paper.

Somehow I don't think you can get out of the lloyds deal without paying the early settlement charge.

To be fair, Lloyds have incurred costs doing credit searches on you and transferring the money, so only fair they should get 1 months interest to cover their cost.

This early in the loan though - it is probably worth switching to the Tesco one.

R.

ebz1982

Hi, Yes I did enter into an agreement at the time of application. Because it was an "instant decision" loan and I am a customer of lloyds already, the agreement was accepted online when I entered my internet banking security details. The agreement stated that by entering these details, I accepted their terms and conditions but it also stated that I would receive written conformation within 4 working days which I haven't. When I phoned lloyds, they said that the money has to be returned to them within 14 days of receipt for me to be able to pull out

mrmajika

It's 30 days from the point of being accepted and you won't be charged.