Generally speaking, as a borrower, you are bound as soon as you sign a credit contract. However, the law allows you to withdraw from your commitment as long as the lender’s general conditions clearly and concisely provide for it. Let’s take a look at this significant protection organized by the legislator for consumers.
Deadlines for a credit contract
As a consumer, you can withdraw from the credit contract within fourteen days from the signing of your contract. The law refers to “calendar days,” meaning every day of the week, including Saturdays, Sundays, and legal holidays.
However, the law provides that the fourteen-day period may begin on the day the consumer receives the general conditions, if this date is later than the date of the conclusion of the credit contract.
Exercising the right of withdrawal
You are never required to justify the reasons for which you wish to exercise your right of withdrawal. Furthermore, the law is not very formalistic since it is sufficient for you to notify the financial institution, by registered mail or by any other means accepted by your co-contractor (for example, a simple ordinary letter or an email), of your intention to withdraw from the contract.
The deadline is deemed to be respected if the notification has been sent before its expiration. It does not matter if the lender receives your letter after the fourteenth legal day since it is the date of dispatch (postmark) that is authoritative.
Consequences
If it is a credit contract under which a good is made available to you, you must return it immediately after the notification of withdrawal. It goes without saying that the right of withdrawal is not applicable if you have consumed, damaged, or lost the good.
For any other credit contract, that is, when you receive capital, you are required to immediately repay this capital to the lender and at the latest within 30 calendar days following the notification of withdrawal. In both cases, you will be required to pay the interest due for the credit drawdown period, calculated on a daily basis at the agreed debit rate.
The withdrawal of the credit contract results in the automatic termination of ancillary service contracts. For example, your outstanding balance insurance contract will also end, so the insurance premium already paid must be refunded to you.
The lender cannot claim any other compensation from you for any reason whatsoever.