Companies offering quick loans are growing like mushrooms after the rain. It is difficult to cross the main street of a medium-sized city and avoid the insistent handing over of a whole package of leaflets offering so-called payday loans. If you find yourself in an urgent financial need and the banks do not want to grant you a loan, incurring a debt in a short-term institution is not a problem. Worse, however, if you change your mind and want to opt out of such a loan. Is it possible to terminate the payday contract? Read the article below and you’ll learn how to do it step by step.
Debt in a loan company
Debt in a non-bank institution is getting simpler. A payday contract can often be made in the comfort of your own apartment, the time it takes is often only a quarter, and the list of documents needed to quickly repair your home budget is usually limited to your ID card. If this is not the first time we use such a service and we have repaid the previous debt on time, the formalities are even less, and the amount borrowed may be higher. Unfortunately, withdrawing a debt decision is not as easy. This does not mean, however, that it is impossible. Our rights result from the provisions of the Consumer Credit Act. So how do you terminate the payday contract?
Why do I want to withdraw from the loan?
The reasons for resigning from a loan already taken may be different – sometimes the financial problem can be solved without a sudden injection of cash, someone finds a better offer than the payday loan, and perhaps the borrower’s emotions are falling and it turns out that the planned purchase is not so necessary, As it seemed yesterday. Whatever prompts you to withdraw from the loan, don’t worry – you don’t have to explain it to the company that has signed a payday contract with you. According to some, it is also a good way to extend your debt repayment deadline. It may turn out that this solution is cheaper than refinancing the liability.
How much time I have?
By law, you have 14 days from signing the contract to resign from it, without giving a reason. Regardless of whether the money has already been credited to your account or not. The date and method of terminating the payday loan agreement or withdrawing from the loan must also be described in the regulations of the company you are indebted to. Therefore, it is worth reading the documents carefully before signing or agreeing to their content. Ignorance of consumer rights is unfortunately very often used by non-bank institutions, so you should carefully read the provisions of the contract so as to be surprised in the future.
The moment you take out a loan, you should receive a statement to terminate the contract easily. You can submit them directly to a loan company or send them by post. It is a good idea to send this type of document to registered persons with acknowledgment of receipt. This will save you if your email is lost. You also have proof that the company has received the package. Remember! If you decide to send a request to terminate the contract, you can go to a post office even on the 14th day after concluding the payday pay agreement. What matters is the date on the postal stamp, not the date of delivery of the envelope with the application.
How to terminate the payday contract? What exactly do I have to do?
How to terminate the payday contract? To terminate an unwanted or unnecessary contract, you must write (and sign by hand!) The appropriate application. As we have already mentioned, the lender should provide the content of such an application when concluding a payday contract. The most important thing is that the application should include the name of the loan company and its address. When such a document is ready, you can take it personally to the headquarters of the institution where you have borrowed (you have borrowed). Don’t forget you have 14 days to do it!
Will I bear any costs?
Withdrawing from the loan, of course, does not release you from the obligation to repay the entire debt. The borrowed amount must be returned in full and once. You can not forget about the additional costs charged to the lender – everything, including the date of returning the cash, should be included in the regulations. Usually you have 30 days from the day of sending or forwarding the application to settle all amounts due. However, the sooner you do it, the better for your finances – remember that payday loans are always highly interest-bearing and each subsequent day with additional cash on your account generates additional costs.
If you did not return the borrowed amount by the statutory deadline, the lender can take the case to court. You may start enforcement proceedings, which in the first stage is associated with the seizure of a bank account and further consequences.
Can the lender withdraw from the contract?
Like you, the lender can withdraw from the loan agreement. The notice of termination of the payday agreement is two-sided. Unfortunately, this results in the obligation to immediately repay the entire amount, along with additional costs specified in the regulations. If, despite careful reading of the contract, you still don’t know exactly what amount you owe, you can contact the lender and ask them to calculate the outstanding amount.
What if I don’t give the money back?
Failure to return the borrowed amount within the time limit specified in the regulations will be treated as annulment of the application for termination of payday pay. If you do not pay off your debt, you will quickly find yourself on the list of debtors to which all banks and many other financial institutions have access. You will probably also have dubious pleasure connected with the bailiff’s visit to your home. If you’re having trouble paying your outstanding balance, don’t be afraid to contact the lender’s representative. You may be able to solve the problem, for example by increasing the number of installments. Remember, the worst thing you can do is pretend that nothing happened. Call the payday company and ask for details, ask for explanations of complicated or incomprehensible terms that may appear in the regulations. Knowing your rights reduces the chance that you will be deceived by a dishonest lender. Ideally, you would include a template to download the withdrawal statement.