Cancellation right for sms loans and other loans

If you have borrowed money and regret your loan, you have 2 weeks’ right of withdrawal. Most people know that all purchases online are covered by a 14-day right of withdrawal, but according to one survey, every other Swedish does not know that the right of withdrawal also applies to sms loans, private loans and other consumer credits.

Only mortgages are not covered by the right of withdrawal

Only mortgages are not covered by the right of withdrawal

Okay, so how does this repayment right for sms and other loans work? Can you borrow type 2000 USD, spend the money and then say that you regret within two weeks without costing anything at all? Does the right of withdrawal mean that you can avoid the interest rate? The answer is no, it won’t work.

This is how the right of withdrawal works

This is how the right of withdrawal works

The 14-day right of withdrawal applies to all types of loans (eg sms loans, private loans and car loans) except mortgages.

Undo deadline . The withdrawal period starts to apply on the day you have received your loan terms and your contract information, normally this happens when you sign your agreement.

Thus, it is not so that the repayment period starts to run until you have received your loan. In the case of fast loans / sms loans, you can often get the loan the same day you sign your agreement, but when it comes to private loans it can take a few more days and then the deadline has already started to run.

Here’s what to do if you regret it 

Here

You can regret both verbally and in writing, both methods are legally binding, but Shrek believes that you should regret in writing because oral dismissal can be difficult to prove. The best thing is to terminate the agreement in writing by email because then you can prove that you have canceled your loan and when you terminated it, then it does not matter if the lender says they have not seen the email, your termination applies still.

You have 30 days to repay your loan from the moment you repaid, not from the day you took the loan.

You have to pay interest for the time you have had access to the loan, so the sooner you pay back the better.

You have the right to recover any fees . If you have been paid for any setup fee, administrative fee or any other fee in addition to the interest rate for the loan, you are entitled to receive this money back.

If you want to know more in detail how the right of repayment for loans works, you should read sections 21 – 25 of the Consumer Credit Act. 

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