Withdraw from a credit agreement

[Prolix]

One useful bit of advice concerning credit agreements is that consumers have the right to withdraw from an agreement providing it hasn't been executed (Section 57(1) Consumer Credit Act 1974). An agreement is executed when signed by both parties. Not every agreement is cancellable, but every agreement can be withdrawn from!

For example:

This is most helpful if you have been out on a Saturday and bought a car on finance. No finance company in their right mind would let a car salesman sign a credit agreement on their behalf so it has to be faxed to the finance co for signing. The agreement is executed when signed by the other party. So if you were to change your mind on the Sunday then there is a chance you can withdraw from the credit agreement and hence the purchase if you are quick and the agreement hasn't been executed. The agreement will not be available for signing until Monday morning and if you are quick and phone first thing (backed up in writing) then you might have a way out.

You would lose any deposit paid to the dealer though. Offer them £1 as deposit

[LordLee]

i was in need of cash and took a small £750 loan out with the dreaded Welcome Finance. I have a CCJ, long story, but had no other choice... and with regret signed the credit agreement for the loan and sent it off.

they appear to have made an error... they gave me the cash, but sent my signed copy of the agreement back to me. i'm not sure they signed it. yes they could have made a copy... but where do i stand here? can i now get out of it?

Not that i'm dishonest. I pay on time every month and will continue to do so. But... if i could walk away or just give a minimum back it would be good to know.

Anyone with help?

[maybelline]

is a pre contract agreement signed on a petrol forecourt cancellable within one week??

[MrShed]

Originally Posted by LordLee

i was in need of cash and took a small £750 loan out with the dreaded Welcome Finance. I have a CCJ, long story, but had no other choice... and with regret signed the credit agreement for the loan and sent it off.

they appear to have made an error... they gave me the cash, but sent my signed copy of the agreement back to me. i'm not sure they signed it. yes they could have made a copy... but where do i stand here? can i now get out of it?

Not that i'm dishonest. I pay on time every month and will continue to do so. But... if i could walk away or just give a minimum back it would be good to know.

Anyone with help?

Debt avoidance is not advocated, encouraged or allowed on this forum.

Anyway, it is by the by, as the chances of them having not made a copy are pretty damn small.

[maybelline]

Have a read round the Welcome threads, the issue is usually that WF agreements may not be enforeceable, apart from the important matter of them being extortionate finance aimed at the vulnerable

[dannygr27]

HI i have had alot of debt problems in the past and early last year cancelled all of my credit agreements and paid off everything i owe, i sent the cancellation requests by recorded delivery and asked for a written response, in november i was a having a bad time and did some virtual shopping only to find two of my catalouges were still active, i still have the letters confirming that the accounts were closed. i used the accounts(stupid but i have a problem with spending which is why i had tried to close the accounts) i cant afford the re-payments and the amount they want from me in a payment arrangement is double what i can afford and will also have a much higher rate of intrest, where do i stand with these debts, I know it's my own fault but i did try to close the accounts and paid them off in full, i cant afford what they want as dont work at the moment, any advice on where i stand so i can make them accept more reasonable payment's would be appreciated

[maybelline]

National Debtline England & Wales | Debt Advice

try this site for some letters, budget sheets etc, which help out with sorting out an offer which you can afford, also has a tel helpline. they list all the things you should pay first, catalogues are pretty low on the list, if you are not working a token payment of £1 a month may be what they suggest. however, I realise the accounts were closed prior to this - using them may mean you have reopened the contract (?) I am sure someone more knowledgeable on this will jump in.