Can I Cancel a Credit Agreement within 14 Days
As a consumer, it is important to know your rights when it comes to credit agreements. You may wonder whether you can cancel a credit agreement within 14 days of signing it. The answer is yes, you can.
The Consumer Credit Act 1974 provides consumers with a 14-day cooling-off period during which they can cancel a credit agreement. This applies to both personal loans and credit card agreements.
The cooling-off period begins on the day the agreement is made or when you receive a copy of the agreement, whichever is later. If you decide to cancel the agreement within this period, you must inform the lender in writing.
You do not need to provide a reason for canceling the agreement. However, you must repay any money that you have already borrowed along with any interest that has accrued up until the date of cancellation.
It is important to note that if you have purchased goods or services using the credit agreement, you may still be responsible for paying for them. This is because the credit agreement is a separate contract from the purchase agreement.
If you cancel a credit agreement within the 14-day cooling-off period, the lender must notify the credit reference agencies that the agreement has been canceled. This should not have a negative impact on your credit score.
In conclusion, as a consumer, you have the right to cancel a credit agreement within 14 days of signing it. This provides you with a safety net in case you change your mind after entering into the agreement. Be sure to inform the lender in writing if you decide to cancel the agreement and repay any money that you have already borrowed along with any interest that has accrued up until the date of cancellation.