When taking a cash loan, we always have the right to withdraw from a contract with a loan company after fulfilling a few basic conditions.
However, not only we can take advantage of this opportunity. Pursuant to the Civil Code, the lender also has the right to terminate the contract.
A slightly different procedure
According to the Consumer Credit Act, every customer of a loan company has the right to withdraw from the loan agreement within 14 days of the date of the financial commitment without giving any reason for the decision.
Of course, he must also return the entire borrowed money within 30 days. These assumptions apply only to the clients of loan companies. For lenders, the contract termination procedure looks a bit different.
Typical withdrawal situations
The lender may terminate the loan agreement with the customer if he manages to detect a fraud attempt by the borrower. Each potential customer is required to provide true information about their own current financial situation. Providing false data may result in criminal liability.
When the attempted fraud is unmasked, the lender has the right to suspend the payment of cash, and if it has already been transferred to the client, the representative of the loan company has the right to withdraw from the contract and demand repayment of the entire amount of the liability.
Another example in which the lender can exercise his right of withdrawal is when the customer becomes insolvent or when the collateral for the loan granted has been drastically reduced.
In these cases, the loan company may terminate the contract with the borrower and demand an immediate refund of the money borrowed. It must also prove that the borrower does not have sufficient financial capacity to repay the liability.
Transparent customer information
The loan company also has the right to define other situations in which it will be able to withdraw from the loan agreement. The lender should indicate them in the information form attached to the loan agreement.
Before signing a contract with a loan company, we should carefully read the content of the contract , including provisions about the situations in which the loan company has the right to terminate the contract with us.