What is meant by this...?

[stush]

Can somebody explain what this means, maybe give dates on how this would work, based on a loan taken Today 24th May..

 

You have the right to withdraw from the credit agreement within 14 calender days after you receive written confirmation that we have executed the agreement. If you withdraw after receiving credit, you must repay the credit within 30 days and repay any interest due on the credit.

[ims21]

Hi there

 

It is basically a 14 day cooling off period. So you can back out of the credit agreement any time up to 14 days after they execute the agreement. So, let us say you buy some goods on credit, say from a sales rep who visits your house. You take their finance option. You have 14 days to opt out of the finance. This doesn't affect your contract with the supplier of the goods, you would just have to pay them yourself without using the finance package.

 

If you been given the finance i.e. some money under the agreement, you must repay it within 30 days plus some interest for the privilage of having used that money on loan for that short period of time.

 

ims

[stush]

Hi there

 

It is basically a 14 day cooling off period. So you can back out of the credit agreement any time up to 14 days after they execute the agreement. So, let us say you buy some goods on credit, say from a sales rep who visits your house. You take their finance option. You have 14 days to opt out of the finance. This doesn't affect your contract with the supplier of the goods, you would just have to pay them yourself without using the finance package.

 

If you been given the finance i.e. some money under the agreement, you must repay it within 30 days plus some interest for the privilage of having used that money on loan for that short period of time.

 

ims

 

So if I was for example to cancel on 14th day, do I have 30 days from that date to repay the credit + interest for the period I hade the credit for...or is it 30 days from the date I received the credit - regardless of when within the 14 days I cancelled?

[ims21]

Hold on.....I'm just going to get an agreement and have a look.....back in a mo

 

ims

[ims21]

Hi there

 

Its 30 days from the date of giving notice. Some of them word it like this....."repay the credit without undue delay or in ay event no later than 30 days after giving notice....."

 

Hope this helps

 

ims

[stush]

Hold on.....I'm just going to get an agreement and have a look.....back in a mo

 

ims

 

Thanks the paragraph in my original post is from my agreement, however when calling hsbc they state that can cancel within 14 days and loan needs to be paid back within 14 days - on the day of cancellation

[ims21]

The wording taken from your agreement is

 

"You have the right to withdraw from the credit agreement within 14 calender days after you receive written confirmation that we have executed the agreement. If you withdraw after receiving credit, you must repay the credit within 30 days and repay any interest due on the credit."

 

which to me reads that you have 14 days to withdraw and 30 days from that date. I don't think they have worded it very well. Personally, I wouldn't rely on info given in a phone call to a bank!

 

ims

[stush]

The wording taken from your agreement is

 

"You have the right to withdraw from the credit agreement within 14 calender days after you receive written confirmation that we have executed the agreement. If you withdraw after receiving credit, you must repay the credit within 30 days and repay any interest due on the credit."

 

which to me reads that you have 14 days to withdraw and 30 days from that date. I don't think they have worded it very well. Personally, I wouldn't rely on info given in a phone call to a bank!

 

ims

 

Thats what I make of it too when reading it - but if the telephone operater telling me differen says to me that I may have issue if I follow what it says on the paperwork and dont want to pay lots of interest as the loan is front loaded....

[ims21]

Well to my mind you have a written document on which you should be able to rely OR you have some heresay from a phone operator.

 

If you want to be absoluteley sure, why not pop into the local branch of the "World's Local Bank" and clarify it. Whatever they say get them to put it in writing.

 

ims

[ims21]

By way of further information, the 14 day withdrawal period came in to force by way of the Consumer Credit Directive earlier this year

 

ims