Can the lender withdraw from the contract?

January 18, 2017 When we need money, we go to a loan company. He provides us with the necessary amounts, offering both short-term and installment loans. We have the right to cancel the contract as soon as we meet certain conditions. Can the lender also use this right? Our experts took care of this topic. 

Loan companies provide the necessary financial support

We can use the loan companies’ offer at any time and from any place. This is made possible by the technological innovations implemented, which the non-banking sector consciously and effectively uses. Fintech solutions significantly simplified the process of applying for financial support, saving the time of borrowers. Customers successfully incur liabilities using mobile devices, and the most-popular free loans are particularly popular. Free payday loans exempt us from any additional costs, allowing us to refund exactly the amount we received.

Importantly, if we decide to take the payday loan too quickly, we can opt out of the loan based on the law, and more specifically on the Consumer Credit Act of May 12, 2011. It allows you to withdraw from the payday loan, provided that an appropriate statement is made within 14 days. We have 30 days to refund the amount collected, remembering the interest for the period in which we could have had it.

The lender has the right to withdraw from the contract

But not only the borrower can decide to give up payday loans. According to the Civil Code, also the person granting a financial liability has the right to withdraw from the loan agreement. The lender therefore not only grants loans, but may also refuse to issue them. This occurs when the return of the client’s liability is doubtful due to his poor financial status. A non-bank institution cannot exercise this right if it was aware of a negative financial situation or could easily find out about it.

As you know, the lender is required to verify every customer seeking budget support. Issuing a negative loan decision by him is the last resort. This only happens when there are indications for it. However, the borrower may hide some urgent expenses or not inform about the need to regulate other charges. The scams will come out sooner or later, but this can only happen after the documents have been signed by both parties. If the lender was not aware of the fact that some of the facts were concealed by the client and the verification carried out by him did not reveal anything, he would not pay the client the money he was applying for.

The lender cannot allow a delay in payment of cash

We try to make trustworthy payday loans, which is why we count on fast cash withdrawals. However, when the lender delays the payment of money, we are not happy with it. Moreover, if the loan company does not meet the deadlines, it loses the right to withdraw from the contract. He may, therefore, refuse to mobilize the loan, provided that he was not aware of the client’s poor financial status at the time of withdrawal and did not commit the delay in transferring the cash. By resigning from mutual cooperation, it must also prove the borrower’s insufficient ability to pay its debts. Therefore, although a quick loan is easy to take, it can be easily lost if the client’s financial capacity does not allow them to meet their obligations.

The right to withdraw from the contract is indicated by the signed document

Issues regarding withdrawal from a cash loan agreement are contained in a document signed by the borrower and the lender. This issue is one of the most important elements of the loan agreement, although at first it may seem of little importance to us. However, once we sign the documents to receive the money, it may turn out that we want to withdraw this decision. Then we will certainly search the document to find this record. The lender must take care of its inclusion in the contract so that the client is aware that the loan company also has the right to decide to withdraw.

The documents must also contain other items referring to the contact details indicating the loan institution and the person using its services, as well as specifying the amount of costs and the consequences of not repaying the loan on time. If all the key elements are in it, you can confidently sign the document. However, we should always be vigilant so that it does not turn out that an important fragment of the whole record escapes our attention.

Borrow wisely

To avoid a situation in which a non-bank institution wishes to withdraw from the contract concluded with us, you should borrow reasonably. The most important is choosing a credible lender and choosing the right amounts. You can’t borrow more than we can pay. We should also know what must be on the payday loan website to make sure that the company we are interested in is a reliable lender. We will not worry about the response to the submitted application, provided that our finances are characterized by a positive credit history. Approaching each financial decision with our heads, we will certainly not regret it.

How do you look for payday loans?

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It is best to find loans using payday rankings. They show which proposals are leading because of particularly attractive conditions. Undoubtedly, the amount that can be borrowed and the cost of the commitment that we will commit are important. If you decide on an installment loan because we need a larger sum, installment loan rankings will help us. There, we will also find out all the information we are interested in and find out which offers will actually meet our expectations.