The decision to take a loan should be well thought out. It happens, however, that after signing the loan agreement, the borrower recognizes, for various reasons, that he does not need, does not want or cannot make a financial commitment.
It remains for him to exercise his statutory right to withdraw from the loan or credit agreement. Under what conditions can this be done?
Can I withdraw from the loan agreement?
In principle, all banks in Poland, as well as non-bank companies dealing in granting loans or credits, must comply with the provisions on consumer credit. This type of credit is defined as credit granted to the consumer against payment, for an amount not exceeding USD 255 550, for purposes not related to his business activity.
The Consumer Credit Act imposes on banks and loan companies the obligation to accept the consumer’s application regarding a withdrawal from the loan agreement or withdrawal from the loan agreement.
Therefore, the question of whether it is possible to withdraw from the loan agreement and whether it is possible to cancel the loan without providing comprehensive explanations and incurring costs should be answered in the affirmative.
Regardless of whether it is a cash loan or mortgage loan, or even a consolidation loan, it is possible to resign from the loan, but only within 14 days of signing the relevant consumer loan agreement.
Until 2017, it was not possible to withdraw from the mortgage contract on the terms applicable to consumer loans, but at present, in accordance with the Mortgage Credit Act of July 22, 2017, it is possible within 14 days of signing the loan contract.
The liability in which the withdrawal from the loan agreement relates to must also be within the limit specified for consumer credit. The loan agreement is terminated when the relevant application is submitted. It is also possible to opt-out of a loan application before it is considered.
How to withdraw from a loan agreement?
In practice, withdrawing from a loan agreement involves submitting an appropriate application to the bank or loan company. A statement of withdrawal from the loan agreement is needed. It is usually a one-page document in which the name and number of the loan agreement, borrower’s personal details, and address details should be provided.
Finally, the customer indicates the bank account number to which the bank should send an amount equal to the costs incurred by him in relation to the concluded contract. A distinction should be made between terminating a loan agreement and terminating a loan agreement from its withdrawal.
Termination occurs as a result of an agreement of the parties and it can be made at any time during the repayment period if the parties agree. However, the termination of the contract differs from the withdrawal in that it concerns the future and consists of unilateral termination, which is possible at any time, but the borrower may be exposed to serious costs.
Withdrawal from the loan agreement – the legal basis
Borrowers and borrowers are guaranteed the right to withdraw from the loan agreement by the Consumer Credit Act of 12 May 2011.
It indicates all matters that relate to withdrawal from the contract, to the effects of such action, etc. In chapter 5 of the said Act, in art. 53 section 1, the legislator gives consumers the right to withdraw from a consumer loan agreement without giving a reason within 14 days of its conclusion.
At the same time, the creditor or credit intermediary is obliged to conclude a credit agreement and provide the consumer with an appropriate model of withdrawal from it on a durable medium.
The formula should include the name and surname or name and place of residence or the registered office of the creditor or lender. The bank or lender must inform the customer that he has the right to withdraw from the contract and attach a model withdrawal.
At what time can you withdraw from the loan agreement?
Many bank and loan company customers are wondering when they can opt-out of the loan. We already know that they have 14 days to do it, but how do you count this period? This time is counted from the date of signature on the document of the loan or loan agreement.
Even if the customer submits a withdrawal from the loan agreement or sends it on the 14th day after signing the agreement, the creditor must include it. If the customer decides to send a statement of withdrawal from the loan agreement, it is best to use a registered letter. Then the consumer will have confirmation of the withdrawal with a clear date and all required recipient data.
However, if the consumer makes a withdrawal from the loan agreement at a branch of the bank or the loan company, it is best to ask for confirmation in writing.
Failure to provide a model statement of withdrawal from a consumer credit agreement by a bank or loan company means that the consumer may withdraw from the contract within 14 days, but calculated from the date of delivery of such a model to him.