Who concludes a loan agreement, which basically has a statutory right of withdrawal. The statutory provisions on the revocation of a loan agreement stipulate that the consumer can withdraw from the contract for at least 14 days after conclusion of the loan agreement. But what must be considered in view of the revocation of a loan agreement? What information is in the cancellation policy and how should the revocation be done best? The following article deals with the topic “Revocation of Credit Agreements” and contains besides the answers to the mentioned questions, additionally some tips and tricks.
This is the cancellation policy for a loan agreement
In accordance with the legal requirements, borrowers must be able to find in the cancellation policy all the important information that is required about a possible credit revocation. For this counts only once that the revocation instruction informs the borrower about its existing right of revocation. Consumers can cancel their contract within 14 days without giving a reason. It does not matter whether the borrower decides to write a letter or send a fax or e-mail. It is only important that the credit revocation is given in time, within the specified period. The revocation period may begin at the earliest upon receipt of the revocation instruction (as a rule, the period begins on the day the contract is signed). In the next step, every bank or lender has to inform the consumer about the address, fax number and e-mail address of the credit revocation. In addition, revocation instructions can still contain “special instructions”, for example, if it was not a standard loan agreement and the lending business was linked to other contracts. In any case, however, the revocation instruction must contain the so-called “cancellation consequences”, which inform the borrower about the consequences of the execution of the credit revocation.
Important: The revocation sequences must be observed
The revocation sequences are a very important point, which must be observed in any case in a planned credit revocation. Depending on whether the completed loan has already been paid or not, revocation has different consequences for the borrower. First of all, the credit revocation ensures the immediate cancellation of the credit agreement, so that a borrower after a pronounced revocation, of course, no longer has a right to disbursement of the loan amount. A revocation of the revocation is not legally permissible, as only a new credit agreement has to be created and duly signed by both parties. The processing of a credit revocation becomes somewhat more complicated if the loan amount requested has already been made available to the borrower (for example, loan payment on the day the contract is signed, credit revocation on the eighth day of the revocation period). In such a case, the lender has already provided a service through the loan payment and the provision of the credit, which of course must be paid. Each credit agreement therefore contains under the item “Consequences of revocation” a specific amount of euro which has to be paid by the borrower if a payment of the loan amount has already taken place. The calculated amount accrues to pay interest costs incurred and is calculated on the basis of the loan amount and the interest rate specified in the loan agreement.
How should the revocation of a loan agreement be carried out?
First of all, every credit revocation must be carried out on time and within the applicable cancellation period. In view of the withdrawal period, it is important to know that every calendar day counts and, accordingly, no differentiation is made between Saturdays, Sundays or public holidays. As a consumer, you should send the declaration of withdrawal as secure and sustainable as possible to the lender. This should mean that you should always carry a letter by registered mail, for example, to have a valid proof of the day of shipment in hand. The same applies if a revocation is to be addressed by e-mail or fax to the lender. In the event of a cancellation by e-mail, you should always send an electronic confirmation of receipt (which can be selected as a free option for most e-mail hosts). Even if a credit revocation may be formulated largely free of form, you should always get as a consumer a sample letter, which can be found on the Internet as part of a short Google search. This has the advantage that as a borrower you have the security of not forgetting anything – for example, the number of the loan agreement or similar. As far as the issue of “reasoning” is concerned, as a consumer you really do not have to worry about anything. Of course, each borrower decides for himself whether to tell the contractor that he has found a cheaper offer elsewhere or the like – but this is not crucial to the validity of the credit revocation (but it can be helpful if an active and good business relationship continues to the respective bank or to the lender).
Conclusion: For each credit agreement, the borrower has a right of withdrawal, which must have at least a statutory period of 14 days. The revocation period usually begins on the day the contract is signed or on the day on which the borrower first received the applicable cancellation policy. Within the applicable period, a revocation can be addressed by letter, mail or fax to the lender at any time and without giving reasons. For the consumer, it is especially important that the withdrawal consequences mentioned in the cancellation policy are observed. For the processing of the credit revocation, it depends in particular on whether the loan amount has already been made available to the borrower or the payment was still missing. When sending the credit revocation, one should, as a consumer, especially make sure that the revocation is sent securely and provably to the lender.