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Loan cooling off period

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
I want to get a personal loan, I need to apply for it now to buy what I want but there is a small possibility I won't be able to purchase what I want when it actually comes to it. Is there a legal cooling off period where you can cancel the loan and give back the money? Or does it vary with different banks? If so, how do I ask without looking dodgy?

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    You have a statutory 10 day cooling off period under the 1995 Consumer Credit Act although some banks offer more e.g. 14 days. You should not, it is always in the act that there should be no cost or penalty to yourself for doing so.

    Be careful though, I've been caught short a few time doing such things.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Some types of loan don't have a cooling-off period, especially if you sign the agreement in their premises, so you need to be careful. Mortgages, for instance, generally don't.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Its ok, I've come up with a less dodgy way of borrowing the money I need. Thanks though :thumb:
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote: »
    Some types of loan don't have a cooling-off period, especially if you sign the agreement in their premises, so you need to be careful.

    That would be under the Distance Sellings Regs though rather than the CCA though, wouldn't it?
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Credit agreements have the same cooling-off under CCA74.
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