Cancel a personal payday loan is possible, provided that certain conditions are met. Here is what you need to know about the conditions to respect to cancel a personal payday loan.
Cancel a personal payday loan as part of a retraction
A personal payday loan can only be canceled in two specific cases. The first case is where the borrower wants to cancel his loan during the withdrawal period. The withdrawal period is a period granted to the borrower after the signing of the loan contract to reflect on his choice and possibly backtracking by canceling his contract.
In terms of personal payday loan, the withdrawal period is 14 calendar days from the date of signature of the loan, in accordance with the law n ° 2010-737 on the right of retraction. During this retraction period, the borrower can freely cancel his loan without having to produce receipts from his bank or credit institution. We will then talk about termination of the loan agreement.
This termination can occur because of a change of situation compared to the date of the signature (loss of employment, accident of life …) or without particular changes. Of course, if the withdrawal occurs after the release of funds, it is appropriate for the borrower not to have already used all or part of the funds in order to play the termination. Otherwise, the borrower will be forced to repay the funds already used.
Cancel a personal payday loan as part of an early repayment
The second case of canceling a personal payday loan is that of early repayment and total loan. This possibility is envisaged by the article L312-34 of the Code of the consumption. This refund will not result in any fees or interest. However, penalties may be requested by the bank or the institution according to the terms and conditions provided for in the event of early repayment.
The formalism to respect to cancel a personal payday loan
Whether it is to obtain cancellation of the loan as part of the cancellation or early repayment, the borrower must imperatively comply with a formalism on pain of not being able to obtain the expected cancellation. In both cases, he must send a registered letter with acknowledgment of receipt to inform the bank or credit institution of his intention to cancel his credit.
The borrower will have to mention the article of law corresponding to his situation, namely the law n ° 2010-737 on the right of retractation or the article L312-34 of the Code of the consumption according to the case.