Right of withdrawal and cancellation of online loans
When acquiring an online loan , there is the possibility of availing yourself of the "Right of withdrawal", which gives us the possibility of canceling it up to 14 days after contracting. This right is included in article 28 of Law 16/2011, of June 24, on consumer credit contracts. Below we will tell you all the details regarding this right, in addition to telling you how and when you can exercise it if you contract loans on the internet.
Right of withdrawal of loans
In the United States, the right of withdrawal of a loan contracted on the internet is regulated in article 28, of Law 16/2011 of June 24, on consumer credit contracts . Said article states that " the right to withdraw from a credit contract is the consumer's power to annul the signed contract." That is, having the right to cancel a loan after approval for no reason .
To notify the contracting party of our decision to cancel the loan, a maximum term of fourteen calendar days is established through a durable and accessible support, without the need to indicate any reason or impose a penalty for it.
Which does not mean that we do not have to face any payment . In fact, the contracting entity will be entitled to claim the borrowed capital together with the part corresponding to the percentage of the interest accumulated in the period from when we receive the credit (calculated on the basis of the agreed debtor rate), until the date of your refund.
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To make the payment of said capital, we have a maximum period of 30 calendar days from the moment we send the corresponding withdrawal notification to the entity.
It is important to know that in the event of contracting loans with linked products, this law supports the cancellation of both the credit and the product in question. Either way, in order to qualify for the right of withdrawal from an online credit, we will have to comply with the conditions and requirements of the indicated legislation.
Otherwise, we will have to comply with the cancellation policies established by the loan companies themselves.
Other types of cancellation
When we cannot avail ourselves of the right of withdrawal , and we are interested in canceling a credit online, we will have the opportunity to request an early settlement that allows us to manage its total or partial cancellation , depending on the case.
The early settlement of a credit (either total or partial), gives us the right to reduce the total cost of the same, by paying lower installments, or choosing a smaller number of installments over time, assuming a reduction in the return period.
In any case, the finance companies will have the right to request compensation proportional to the costs derived from the early settlement we execute. If the pending repayment term of the credit that we cancel exceeds one year, the cancellation cost may not exceed 1% of the initial amount of the credit. If the period to which we refer is less than one year, the cost may not exceed 0.5% of the initial amount of the credit.
It is also possible to cancel a loan online without associated expenses , hence the importance of knowing the cancellation policy of the credit institutions and studying the conditions of the lenders before deciding which alternative is better.
Loan cancellation to unify your payment
If to meet the payment of the repayment of our loans we are in a hurry, and each month it is more difficult for us to have extra liquidity with which to face the rest of our expenses, there is a financing alternative known as debt reunification , with the that we can group the payment of our loans in a single installment.
To do this, we would have to take on a new loan that would allow us to pay the cancellation of all pending loans, and from then on, to pay a single, more affordable installment, to be repaid in a longer period of time.
Remember that canceling loans to unify payments has advantages and disadvantages that we will have to weigh before making any decision in this regard .
We must study all the alternatives available to us before deciding if the cancellation of loans in this way is the best decision.