Loan Agreement ...CAN I CANCEL IT ?

[maconights]

Can anyone advise me please ....?

The story in short...

I visited the local branch of my bank because i was concerned that i was getting deeper into the red( been happening over the last 12 months due to a change in circumstances). The whole point was to try and cut down my monthly outgoings.

After a couple of hours in there i ended up walkin out after agreeing to another loan for 5 years(to pay off 2 existing loans with them, a credit card with them, and a 5K overdraft with them) ...with a monthly payment of £391 ....which is about the same as i am paying separately.....

After getting home and realising that i am no better off and WILL struggle to meet these payments for 5 years i phoned the bank to ask how i could cancel the agreement as this was going to cost me more and make me worse off.THE APR. on the new loan 20% is higher than the 2 exising(never paid late on any loan with them)

I was told it was too late and that i could not cancel it....

IS THIS CORRECT ? ...Do i not get a 5 or 7 day cooling period ?or is there anything else i can do ?

This is now preying on my mind and any help would be appreciated !!

Regards Mac

[mrsfoot]

In my opinion you are able to cancel an agreement within 7 days from signing as long as the loan is not secured on propery. However have a look at this link and read in full. You know the exact details of the loan, and can decide whether it applies to you.

 

Credit

 

have a look at this one too, it does shed some light on the topic for you

 

Cooling Off Period Applies To Renewals / UK Personal finance blog and money information, tips and links / Money Watch

 

Hope this helps someway

[jezzyjet]

hi there, im sorry to say that i think that you might find that if you signed at their premises then the loan is non -cancellable,ive been looking into one for a friend of mine and his one turned out like that,but do your homework and you might be ok the consumer credit act 1974 might be usefull but its one hell of a document to understand, good luck!!

 

jezzy

[maconights]

Thanks Jezzy and Mrsfoot for a quick response..I have already been checking out the advice guide pages that mrsfoot supplied...but i still appreciate your time mrsfoot..

im sure i read somewhere that i can contest the agreement if it was obvious that i cannot afford the payments....in the meeting i had she kept telling me that £468 was my AFFORDABLE LIMIT..based on the criteria i gave her and the records they had ....

£393 seemed a good option ...TILL I GOT HOME ...

INCOME £1500

PARTNERS INCOME £250

 

RENT £600

MAINTENANCE £200

COUNCIL TAX £79

PETROL £50

BT £31

MOBILE £22.50

UTILITIES £50

CAR INS/tax £53

PETROL £50

OTHER CREDIT £100

 

not taking into consideration food,cloths leisure ...and then lend me a loan at £393 per month ???

HELP PLEASE ?

[mrsfoot]

Did they offer you the new loan or did you approach them about it?

 

If they approached you then you could claim you had been mis sold a loan as they cannot force you into renewing a loan. SO that could be an option!

Other than that, write to them and tell them you cannot afford the repayments for the new loan and want to cancel it. Send it recorded delivery to Customer Service Manager so you now they get it. Keep a copy of it too.

[Matt007]

Hi

My wife has been through similar problem. It is just preying the whole family.

My wife went to LLoyt TSB to check credit scoring and thinking to get loan.

She was in rush and she was to sign some forms without actually explaining the her what she is signing for.

After 15 days she got bank statement she noticed that she was paid the money.

We went to the bank the bank manager said it is non cancelabel loan. The adivsor who issued she is off sick she will be back next week. So contact us next week. He also added that we record sometimes so I am going to listen to it as well. But when we called customer service they said that there is no such thing in the branches.

We are stuck and we don;t know what to do please advice us.

Many thanks

Matt