For what reasons can I revoke a loan?
Now the loan is properly withdrawn – dates, forms and consequences For what reasons can I revoke a loan? What must the withdrawal of a loan look like? For what reasons can I revoke a loan? The one who concludes a loan agreement, often under high financial constraint and needs to spend a short time. Therefore, it may be that the conclusion of the contract is too timely and without careful consideration of other credit offers or alternative options and that low-interest loans are only to be found after conclusion of the contract.
Further grounds for revocation include eg lack of solvency due to sudden unemployment or sickness or the loss of the loan reason, eg because a purchase of apartments was shaken by the resignation of the seller or changed plans for the future. The cancellation of a loan is regulated in 5 BGB.
A right of withdrawal for consumers exists if the credit agreement with an entrepreneur, such. As a house bank or a bank, was closed and served a private purposes. From 2002 it is also possible to revoke a real estate loan under the law. In justified exceptional cases, the creditor must have received the objection within fourteen days.
Read our Revocation Joker guide, which explains why you can easily withdraw a contract from this period. If the borrowing is for a commercial purpose or self-employment, the withdrawal from the loan agreement is not possible because according to 13 BGB only one born person acts as a consumer.
Tip: Would you like to read more about the contradiction?
Inform yourself then in our guide “withdrawal of insurance” and “cancellation of notice”. Also, for the justified resignation of a loan, as in the case of the right of withdrawal, a deadline must be adhered to. This usually takes place fourteen days after the conclusion of the contract, if an effective revocable instruction has been issued.
Excluded from this notice period are essential missing data in the credit agreement, such as the duration or the interest amount. This can be done later, but the withdrawal period extends to thirty days after conclusion of the contract. The basis for this is 492 (6). The common mistakes in the cancellation policy are:
If you are not sure whether the contradiction given to you is correct, you should check it by a specialized lawyer or not. Note: According to the 312g and 355 BGB consumers have a right of withdrawal upon conclusion of the contract. The so-called revocation must be received before conclusion of the contract and requires a certain design.
In the case of missing or incorrect cancellation instruction, the period does not expire and the customer can also later revoke the purchase agreement pursuant to 356 (3) sentence 2 BGB. However, for contracts concluded after 31 December 2016, the withdrawal period is not unlimited, but is twelve months and fourteen days.
The effects of the revocation of the loan depend above all on the advance payments already made. You must then revoke all contractual obligations within thirty days of the conclusion of the contract. You have to reimburse not only the loan amount but also the accrued borrowing costs. If you have already made payments before the withdrawal, the lender must settle these with the interest payments you have paid.
What must the withdrawal of a loan look like? If you want to terminate a loan agreement, the resignation is not tied to a particular shape, but must be in writing. In this case, the resignation is not required. The letter of termination is best sent by registered letter to prove receipt by the business partner within the specified deadline. However, you should not miss giving your full address and if necessary the number of the loan contract. In this case, you must specify the address.
Note: If you are not sure how to write your letter of termination, please use our termination service. You will also receive a cancellation letter and a cancellation form from us. If, after signing the contract, you discover that there are more favorable terms with another lender, or if you no longer need the loan, you can cancel it within fourteen days of receipt of the termination instructions.
The cancellation period concluded on May 31, 2016 may not exceed twelve calendar months and fourteen days if the revocable instruction is incorrect or has not been transmitted. In the case of orders already closed, the right of withdrawal is possible in the event of missing or defective cancellation instructions for a longer period. The revocation procedure must be carried out in written form and demonstrably reach the creditor within the statutory time limits.