Revocation of consent to conclude a loan agreement
Everyone knows that buyers can legally refuse to purchase goods in any store within 14 days from the date of purchase of this product, without even explaining the reason for the return, returning it in proper quality without visible defects if there is a receipt for the goods. The same rule applies to bank loans.
The Ukrainian law stipulates in the Law “On Protection of Consumer Rights” the inalienable right granted to the consumer to withdraw his agreement to conclude a loan agreement without specifying any explanation and reason for refusing to sign a loan agreement with a financial institution within 14 calendar days. This right takes effect from the moment a copy of the conclusion of this agreement to the consumer has been transferred.
If the consumer has not received the original contract from the fact that he was given a loan, he is entitled, if there is such a need, to refuse it at any time. That is, if the bank did not present the original contract to the client that he was given a loan, or does not have evidence that the original was handed over, the borrower has the right to refuse without any explanation from the loan agreement with the financial institution within 14 days from the date signing the contract, or at any time before receiving the contract.
According to the existing legal procedure, the borrower submits a corresponding application to refuse a loan to the bank, and the funds received from the borrower are returned to the financial institution. In this case, the borrower returns only the interest on the loan for the actual use of it for a period of 10 to 14 days, and the bank returns all payments, commissions that the client paid by going through the loan process. After these mutual actions, the relationship between the bank and the individual ceases.
There are cases of abuse by banks of insufficient awareness of borrowers, in which banks offer customers the right to refuse a loan, but as some preferential terms such as, for example, an advertising campaign.
It should be noted that the right of a client to withdraw his loan agreement does not apply to a loan aimed at housing, mortgage lending, and loans aimed at acquiring certain services that ended in terms of completion earlier than the deadline for the withdrawal of consent agreement.
In most cases, negative consequences of applying for a loan are caused by the fact that people take out loans from banks under the emotional outburst of a variety of bank offers, and when applying for a loan, they forget to start by calculating the amount that will need to be spent to repay the loan.
Credits for the right amount: a loan secured by real estate in Kiev