How long can you cancel a loan? Loan refusal: sample application before and after receiving money
There are many reasons for taking out a bank loan. But often the situation is such that after the approval of the loan application and the signing of the contract, the money is no longer needed. Or the loan was imposed on the client by an employee of a financial institution. How to be in this situation? Is it possible to refuse a loan when the contract is signed by both parties? What legislative documents should be guided by in order to get out of the current situation without material damage or to reduce it as much as possible?
Before signing the loan agreement, please read it carefully.
So is it possible to refuse a loan before signing the contract? The simplest situation may be when the client visited a bank branch, personally applied for a loan, received approval, but did not sign any package of documents, including the loan agreement itself. Here you need to understand that an approved application from the bank does not oblige the client to take any action, if he ceased to feel the need for financial resources.
It is enough for the client to stop communicating with the bank employee and after a while the application in the banking software system is canceled. It would be more correct on the part of a potential borrower to notify the financial institution that there is no intention to borrow money. The procedure for submitting an application for a loan and its approval (refusal) are completely free of charge; no commission fees are charged from the client.
It is important to remember that an approved application (if the client has not personally refused) will remain in this status for several more days. This time is enough to think or search for the maximum advantageous bank offer.
How to refuse a loan if the contract is signed? Much more difficult, from a legal point of view, the situation is considered to be the one when the contract has already been signed. With his signature, the client agrees to enter into debt obligations to a credit institution. And it will not be as easy to refuse them as it would be from a regular approved application, when it was enough just to call the bank and declare your intention not to take a loan.
But do not despair. There is a way out of the situation when the loan agreement is signed, but the money was not needed. From a legal point of view, the fait accompli of signing an agreement can be divided into two cases.
The loan agreement was signed, the client did not receive the money
Here we can talk about both a cash loan and a credit card. You need to focus on the Civil Code of the Russian Federation, namely Art. 870. It says that the loan agreement is considered to have entered into force actually at the moment when the banking organization redistributed the borrowed funds (cash loan or credit card) directly into the hands of the borrower. Accordingly, it is after the transfer of the loan that the client has obligations to a financial institution.
And the sooner in this case the client takes the first steps towards refusal of the loan, the better.
You need to personally contact the banking organization as soon as possible and announce the decision to refuse the loan, as well as terminate the signed agreement.
You can cancel the loan even after signing the contract
According to the current Russian legislation in the field of banking regulation, a credit institution is obliged to satisfy the borrower's demand containing the refusal of a loan after signing the agreement. But practice shows that the bank, in order to keep the client as a borrower, will try, under various pretexts, to delay the process of refusal in time as long as possible.
But if the bank immediately went to meet the client and satisfied his demand to terminate the loan agreement before its actual entry into force, then the client will not need to pay interest on the loan or penalties for termination of contractual obligations. It is also possible that the client still has to pay interest on the loan, which he never used.
The loan agreement is signed, the money is received by the client
If the loan application is approved, the contract is signed bilaterally, the client received the money, but expressed a desire to return it on that day or in a few days and refuse the loan. This is where the early repayment process comes into play. The client must return to the bank the entire amount of the loan taken and pay interest for the days of using it. In this case, even if the client applied one hour after he received the money in his hands, then the interest for using them will be calculated based on one day.
Before signing the contract, it is important to clarify in its terms whether it is possible to repay the loan early without paying penalties for it. For example, under a mortgage lending agreement, early repayment can take place only after a certain period of time specified in its terms and conditions and not a day earlier. Before this period, the client is obliged to make mandatory monthly payments in the amount prescribed in a special schedule. The same rules apply in most credit organizations involved in car loans.
In general terms, the client's procedure for canceling a loan agreement is as follows:
- Once the decision has been made to cancel the loan, you must immediately contact the bank branch and notify the employee of your intention in writing.
- The sooner the customer submits a rejection notice, the less financial expenses associated with the payment of interest for the actual time of using the loan, he will incur.
- If the bank gives a negative answer, you need to seek the help of a qualified lawyer. Or call the hotline of a credit institution.
- If the bank has agreed to terminate the loan agreement, then the next step of the client will be to write an appropriate application.
- When it comes to consumer lending, when the loan is waived within 14 calendar days, no application is required.
- When it comes to targeted lending, the application is also not required when the loan repudiation occurs within 30 calendar days.
In the case of consumer lending for any product, the store must return the money to the bank directly on the basis of the fact of the return. In this case, the borrower needs to ensure that the store makes the transfer of funds in time in favor of the credit institution. In the meantime, he continues to fulfill his debt obligations to the bank.
If the client has not yet received the money, it is easiest to refuse a loan
Output
Practice shows that the procedure for canceling a signed loan agreement is not complicated. It consists of several strictly defined stages. The country's legislation in the field of banking regulation clearly defines the rights and obligations of both the client and the financial and credit organization in the event of a loan repayment.
Before you sign a loan agreement, it is important to read all of its terms and conditions in full. If the meaning of any item remains unclear, you should seek help from a bank employee or a lawyer. It is in the terms of the agreement that the procedure for refusing a loan is prescribed.
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Have you already signed an agreement with the bank, but at home they counted everything again and changed their minds? Or have you been paying for a year, but now the loan has become an exorbitant burden for the family budget? There is only one way out - to get rid of debt shackles before it's too late! I will tell you all about how to refuse a loan if the contract is signed, with minimal damage. So go ahead!
The borrower is not limited by law in his right to refuse a loan, including the sale of goods, if he has already signed it, but did not have time to use it, or repay it ahead of schedule if he has been paying for it for some time.
The most common reasons for refusing a loan after signing the documents are:
- , which the borrower learns about only at home, after reading the documents in a calm atmosphere;
- The need to get rid of active credit. For example, if a bank does not approve a mortgage due to an outstanding car loan;
- Desire to return the initial deposit for a car to spend money on other purposes;
- Lack of money for loan payments. It is better to try to negotiate with the bank than not to pay at all and get penalties and fines.
Termination of the loan agreement is legal only when both parties have no mutual claims left, and the borrower warned the bank in time of its intention to repay the loan ahead of schedule.
Terminating the deal in order not to pay the loan will not work. Court in accordance with Art. 1102 of the Civil Code considers the retention of the object of credit obligations (money or cars) after the termination of the contract as unjust enrichment, subject to return.
On a note. The bank does not have the right to refuse the borrower to terminate the loan agreement, so do not be afraid to contact the bank with such a requirement. The only negative is that early repayment of the loan amount may adversely affect your credit history, so the next time the bank may refuse to conclude an agreement.
How to notify the bank about the termination of the loan agreement
In order to terminate the loan agreement without any problems, it is required to notify the bank of such intention in writing by drawing up an application for termination of the loan agreement. This must be done at least 30 days before you decide to repay the loan amount in accordance with Art. 11 FZ “On consumer credit (loan)”.
If you decide to terminate the loan agreement before you received the money into your account, then write an application for refusal of the loan.
Applications must include:
- The address and name of the bank where you took the loan, the name of his boss, your full name, address, mobile phone number (in the upper left corner).
- Basic data on the loan agreement (number, date of signing, amount of money provided on credit, interest rate and loan repayment period).
- Reasons for termination of the contract.
- Actions that you are ready to take to resolve this issue, as well as counter-claims to the bank (for example, issue a certificate that you have no debts to the bank).
- Date, full name of the applicant, signature.
Make sure the application is accepted by the bank. To do this, an incoming number must be affixed to your document.
For convenience, I am attaching the application forms for termination and withdrawal from the contract and completed examples.
But for this you need to have time to notify the bank before the money was transferred to the account. If you change your mind about taking a car loan for a car, but make a down payment, then the car dealership must return this money.
Holding the salon forfeits is unacceptable - if you have not received the full amount back, feel free to go to court. The bank may still have to pay a minimum penalty, including a fee for processing documents and opening an account. Such a loan will not affect your credit history in any way and will not affect the issuance of subsequent loans.
If you have already changed your mind about taking a loan, then do not delay the return of money! Otherwise, you will find yourself in a situation like the family from the video (which is already three years old, but it is still relevant to this day):
Method 2: terminate the contract immediately after the transfer of money
If you received money, but decided to terminate the contract, then follow these step-by-step instructions:
- Examine the terms of the loan agreement regarding the early repayment of the loan amount and the terms for notifying the bank of such intention.
- Write an application for termination of the loan agreement, indicating in it the reasons why you want to return the loan amount to the bank.
- Submit the application and attached documents to the bank.
- After 5 days, you will receive a response from the bank about the decision made. If the bank agrees, then in the letter you will receive a calculation indicating the amount of principal and interest that you want to transfer to the bank account.
- Return the funds to the bank within 30 days from the date of notification.
The Bank is not entitled to charge an additional commission for early repayment of the loan amount. However, interest on the loan will accrue until the date of actual repayment of funds, so it is better to repay the loan faster in order to pay less interest.
On a note. In some cases, the bank may meet halfway and not charge interest, penalties if the borrower received a loan and immediately refused it. But such cases are individual, because this benefit is a right, not an obligation of the bank, with the exception of the grounds expressly provided for in the contract.
Only in this video you will learn the expert's opinion on how to refuse a loan, even if you have already received money:
How to refuse a car loan after transferring money and buying a vehicle
If you changed your mind about buying a car on credit before you received the money, then notify the bank of the refusal of the loan by writing an appropriate application.
If the salon received the money and gave you a car with documents, the sale is considered completed. After that, returning the car to the salon will not be easy. You will either be refused, or demand a large penalty, and the demand will be legal.
So there are 2 options left:
- Write an application for early termination of the loan agreement and return the loan amount with interest.
- Do nothing with the loan, but sell the vehicle and repay the debt to the bank at the expense of the proceeds.
How to terminate the contract in case of malfunctions in the operation of the vehicle
If within 15 days from the date of purchase you find any technical malfunction in the car, you can use Art. 18 of the Law "On Protection of Consumer Rights", which allows the exchange of a defective technically complex product or the termination of a sales contract and a refund.
A car loan can be terminated due to technical problems in the operation of the vehicle
In case of a refund, the funds are transferred to the buyer in full. If 15 days have already passed, then you can return the car only if serious malfunctions are found and only during the warranty period established by the manufacturer.
When the money paid for the car is returned, the creditor organization will receive its part back, and the loan agreement itself will terminate. In Art. 24 of the Law "On Protection of Consumer Rights" states that you will have to pay the bank only interest for the period of actual use of borrowed funds, and you do not have to pay a penalty.
Method 3: terminate the loan agreement through the court
A statement of claim to the court for the recognition of a loan agreement as invalid is filed in two cases:
- The signed loan agreement revealed provisions that directly contradict the Federal Law “On Consumer Credit”, “On Banks and Banking Activity” and other legal acts regulating the issuance of loans;
- The money was received by an unidentified person through illegal manipulation of your documents or copies of documents.
Claims for illegal clauses of the contract, in fact, rarely end in the cancellation of the transaction. Lawyers of the credit institution are well versed in the legislation, and the main provisions of the standard contract do not contradict legal norms.
If, however, a discrepancy with the law is nevertheless revealed, the court will take your side, but will offer to invalidate the clauses that contradict the law, while leaving the loan agreement itself in force.
How to refuse a loan taken in your name without your consent?
Credit fraud is unfortunately not uncommon. The victim learns about a loan issued by scammers after the bank's penalties begin due to delays in payments.
In court, you will have to prove that you did not apply for a loan, did not sign anything and did not receive money. If you manage to confirm the fact that you did not receive any money from the bank, after which the transaction is recognized as not concluded due to lack of money (part 3 of article 812 of the Civil Code).
It is also possible to prove with the help of handwriting examination that the signature on the documents is forged, because in Art. 820 of the Civil Code states that the loan agreement comes into force after signing by the parties. If the signature is not yours, then this means non-compliance with the written form of the contract and frees you from credit obligations.
Termination of an illegally concluded agreement with a bank does not depend on how long ago the fraudster received the money. The statute of limitations for such cases is 3 years from the date of discovery of the fact of fraud.
Early repayment of a car loan
If you have been using the loan for some time, then the agreement can no longer be terminated, because. loan commitments come into effect. The only option left is to close the loan by early repayment. But where to get the money for this? Consider the options.
Method 4: sell a loan car and pay off the loan
Let me remind you that when applying for a car loan, the car immediately becomes the subject of collateral. In order for the bank to allow you to sell the car on the secondary market, you need to contact the customer service department, explain to them that you do not want to pay the loan and get written permission to sell the car.
You have the right to determine the price of the car yourself, as well as the task of finding a buyer who agrees to a deal involving the bank. If you can’t find a buyer for a long time, then consider selling to buyers who specialize in credit cars. It won't be as profitable, but it will be fast.
You can also return the loan car to the bank so that it itself looks for a buyer and completes the transaction. Banks do not like to sell collateral, and to speed up the process, the car will go to a new owner with a good discount. Be prepared to lose up to 25% of the cost of the car on this.
The transaction takes place under a sale and purchase agreement, which specifies the distribution of proceeds between the former owner and the bank. There are two options here:
- More money from sales than the borrower owes the bank. Then the loan is repaid in full and the collateral obligation is removed from the car, and the rest of the money is paid to the former borrower;
- There is not enough money from the sale to pay off the loan. Then you will have to pay the rest of your funds.
Method 5: pay off a car loan by refinancing
The principle is simple: you take a regular loan in the amount of your car loan debt, pay off the debt for the car, get your title and a certificate stating that the car is no longer pledged, then sell it and repay the loan ahead of schedule from the proceeds in the second bank.
The scheme works well if:
- Car loan debt is not very large- this is necessary so that the second creditor does not refuse a loan;
- The car is liquid in the secondary market– the faster you sell your car, the less you overpay on a regular loan.
Termination of agreements concluded jointly with the loan agreement
When receiving a car loan, Casco and life insurance contracts are signed together with the loan documents or immediately after. When terminating the transaction for the purchase of a car, they must also be abandoned.
To terminate the life insurance contract, you need to apply to the insurance company with an application. The insurer will return the insurance premium, but you will be charged a certain amount for the period when the insurance was valid.
With CASCO, everything is a little more complicated. The provisions of Art. 958 of the Civil Code do not oblige the insurer to return the money, in addition to this, some insurers include a clause in the contract stating that in case of early termination of the contract, the insurance premium is not refundable. If you did not pay attention to this when you signed the document, then there is nothing to be done. It remains only to sell the car together with CASCO.
Check out the video about refusing a loan and terminating insurance contracts concluded with it:
How to cancel a mortgage
If the agreement was signed, and the encumbrance in the form of a mortgage was registered with the Rosreestr Office, but the funds were not credited to the account, then you have the right to refuse the mortgage by notifying the bank in advance.
To terminate such an agreement, you and the bank must apply to Rosreestr with a request to cancel the mortgage registration record. After 3 working days, the entries will be canceled, and you will be released from obligations to the bank in accordance with Art. 25 FZ "On mortgage".
If the funds for the mortgage were credited to the account, but you did not use them, then contact the bank with an application for early repayment of the mortgage and termination of the relevant agreement. In this case, the bank will provide a new calculation, taking into account the time during which the money was in the account.
If you have already made mortgage payments, you can choose one of the following options:
- Sale of an apartment and repayment of a mortgage at the expense of the proceeds. Before you enter into a sales contract, notify the bank of your intention and obtain their approval.
- Restructuring is the improvement and mitigation of mortgage conditions (for example, mortgage holidays, deferral of monthly payments, write-off of penalties and fines, etc.). In order for the bank to apply the restructuring, it is required to write a written application and attach documents confirming the difficult situation and the impossibility of repaying the mortgage in full.
- Refinancing is the repayment of a mortgage by entering into a loan agreement with another bank.
- Appeal to the court demanding early termination of the mortgage agreement if the apartment was transferred with defects and shortcomings.
Judicial practice on termination of loan agreements
In judicial practice, there are very few cases when, at the initiative of the borrower, the amount of interest payable due to early repayment of the loan was reduced due to a difficult financial situation or other good reasons. This only works when the amount of interest exceeds the principal amount.
Also, if, when refusing a loan, the bank did not terminate the insurance contract concluded with it, the borrower has the right to apply to the court with a request to declare it invalid. At the same time, the court will satisfy the claim only if it was indicated in the loan agreement that it is required to conclude an insurance agreement in order to receive money.
In addition, the courts award not only to return the amount of the insurance premium to the borrower, but also to recalculate the debt to the bank in connection with a decrease in its size.
For example, citizen S. filed a lawsuit against the bank to invalidate the life insurance contract concluded together with the loan agreement, as well as to return the insurance premium in the amount of 20% of the loan amount.
At the court session, it was established that the funds under the loan agreement were issued only after the signing of the insurance agreement, therefore the court granted the plaintiff's claims and ordered the bank to recalculate the debt of citizen S.
We have long been accustomed to the fact that bank advertisements right and left offer customers “a happy life today” ... c. Today, on credit, you can buy almost any product from a simple mobile phone to a new apartment. Banks argue this by saying that supposedly you can’t save money all your life, that with their help you can afford to buy anything. What you need to use the opportunities while there is strength, youth, beauty. Sooner or later, a person begins to understand that he does not need lending as a banking service. That it's just a bank's way of making their own money. And decides to refuse the loan.
How to cancel credit insurance
When you fill out an application for, you need to do this very carefully. Be especially thoughtful about those items that are written in small print on the application form. For example, pay attention to the fact that you do not have to pay for insurance, that the fact of non-payment cannot affect the decision of the bank to issue you a loan. Banks benefit from customers purchasing insurance. Many insurance companies pay commissions to banks for referring customers. Naturally, bank managers will do everything to ensure that you take insurance services that are not always necessary for you for granted. There will be a clause on the loan application form stating that you confirm your refusal of insurance - just do not miss it.
How long can you cancel a loan?
If you have already entered into a loan agreement with the bank, but subsequently decided not to take a loan, you can refuse it - you have a legal right to do so. Today, in our country, the rules of Art. 807 of the Civil Code of the Russian Federation, which spell out all the features of contracts. It also refers to the loan agreement as well. You should remember that the contract is considered concluded not when you put your signature under it, but when you received money from the bank. In other words, if the contract has already been signed, but the money under it has not yet been transferred (or you have not picked it up at the bank’s cash desk, for example), then you can safely contact the bank and talk about the need to terminate the contract. In this case, you have no right to refuse. If the money has already been credited to your account, the loan agreement will be retroactive within ten days.
How to cancel a loan
Sooner or later, a person begins to understand that he does not need lending as a banking service. That it's just a bank's way of making their own money. And decides to refuse the loan.
Even if the loan has already been issued by the bank, you have gone through all the necessary procedures for preparing for lending (for example, when assessing the acquired property, etc.), you are not required to sign a loan agreement if you change your mind about taking a loan. It doesn't matter how much time was spent on it. An unsigned agreement is a guarantor of the absence of rights and obligations for you and the bank under the transaction. There will be no legal consequences for your unwillingness to take an already issued loan. To avoid such situations, ask the bank manager to provide you with a sample loan agreement in advance so that you can carefully study it in a relaxed home environment.
How to cancel a mortgage
So, imagine that you decided to buy an apartment on credit, managed to get a mortgage and sign an appropriate loan agreement with the bank. In this case, as a rule, the bank does not transfer money to the client's account, but directs it to purchase housing. And now everything is ready, but in the evening you and your wife weighed all the pros and cons and decided not to go into a mortgage, but try to raise money on your own for several years and buy real estate on your own. If all the terms of the formal termination of the loan agreement have passed, you will need to write to the bank an application for early repayment of the loan, taking into account the fact that the bank will return all its money on its own. In this case, you will most likely have to pay interest for several days of using the loan, but you can refuse to deal with the bank.
Advice from Sravni.ru: Before signing a loan agreement with a bank or taking it from a bank, carefully read the documents that they give you to sign. Often, bank managers slip documents with affixed "checkmarks" where you need to sign. Do not do this until you have re-read the entire document and corrected the data for each item that seems incomprehensible to you.
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Refusal of a loan is one of the ambiguous and controversial cases of the relationship between banks and borrowers. There are some general rules here, but they are spelled out in different documents and, according to experts, may not be consistent with each other.
Possible reasons for refusing to receive a loan
The reasons for the refusal of the recipient from are different. It's hard to list everything. Let's highlight a few typical ones that have a special resonance:
- The client was misled by advertising or credit agents, but realized this already in the process or after registration.
- The bank did not fulfill its obligations under the loan.
- The client understands the obvious unprofitability of credit conditions for himself.
- The client no longer needed a loan.
The first two points assume the fault of the credit institution and may be the basis for claims by the client. The last two put the client at a disadvantage and may require efforts to protect their own interests.
Can I refuse a loan?
The first legislative act regulating relations in the field of lending is the Civil Code. It has Chapter 42 Loan and Credit. We will not consider all its contents here, but we note in advance that the concepts of "loan" and "credit" from the point of view of the law do not quite coincide, because what is true for a loan may not apply to a loan. So, one should carefully approach Article 807 of the Civil Code of the Russian Federation, which states that the loan agreement begins to operate at the time of the transfer of material values. This is written about a loan agreement, not a loan.
The description of the loan agreement begins with Article 819 of the Civil Code of the Russian Federation. Article 821 of the Code is devoted to refusal to receive or issue a loan. And the wording given in this article does not give unambiguous instructions, but refers to the norms of the concluded agreement.
Therefore:
- The moment of making a loan is the actual transfer of money (other property).
- The beginning of the action is determined by the rules of this agreement.
Based on the legislation and application practice, three different provisions can be distinguished in which a loan agreement can be terminated:
- The loan application has been reviewed and approved, but the agreement between the bank and the borrower has not yet been signed by both parties.
- The application has been approved, the contract has been signed by both parties, but the funds have not yet been transferred (issued) to the intended recipient.
- The contract is fully signed, the funds have been received by the addressee.
How long can you cancel a loan?
You can refuse a loan at any stage of registration or repayment, only the refusal procedure and the consequences at each stage will be different.
Refusal to receive a loan at the stage of its registration does not threaten the borrower. An approved application does not oblige you to anything, and if for some reason a person does not want to take money, then he can simply stop contacting a bank employee or directly say that he no longer needs the services.
If the money has already been received and the agreement has been signed, then the borrower has the right to return the amount received.
The law provides for the refusal of a loan within 14 days. During this period, a person can freely return the money to the bank, demanding the termination of the loan agreement.
But at the same time, a financial institution may require the payment of interest for the days used.
When can you refuse a loan?
2 weeks after the signing of the contract it is no longer possible to legally refuse a loan at a bank, but it can be returned in another way: repay it ahead of schedule. To do this, you need to return the entire amount with interest for using the loan.
In case of early repayment, the terms of the loan agreement are of particular importance. By law, the bank does not have the right to refuse the client early repayment of the debt, however, it can impose a ban on the return of money within 2-3 months from the date of signing the agreement. In any case, before going to the bank, it is advisable to carefully study the loan agreement.
Refusal of the loan before signing the contract
Many doubt: is it possible to refuse a loan after its approval? Yes. Without restrictions and mandatory explanation of the reasons. Those. you applied for a loan, reviewed and approved by the bank, but the client decided to refuse, not sign the contract and not receive funds.
In this case, the bank does not have legal grounds to demand any compensation from the client, apply any coercive measures to him, etc. The bank's attitude towards this particular client may be spoiled, this may affect the consideration of future loan requests from this person.
However, banks do not have the duty and habit to explain the reasons for refusals of loan requests, so we will not be able to know for sure whether the next application of the borrower is rejected due to his own past refusal or for some other reason.
To mitigate possible negative consequences, some experts recommend explaining to the bank good reasons for refusing a loan.
Is it possible to cancel the loan after signing the contract?
If the agreement is signed by the bank and the recipient of the loan, but the use of funds has not yet begun, or they have not yet been transferred, then the client has many chances to terminate the credit relationship without material damage to himself.
Here you need to carefully study the relevant clauses of the contract. If they contain any penalties or other sanctions for the client in this case, then it is better to agree with them, pay the amount due (if it is small) and terminate the contract as soon as possible.
A possible fine in this case can be explained by compensation for checking solvency, paperwork, etc.
Refusal from and trusted credit also has significant differences. A consumer loan is concluded immediately after it is signed by the parties. A target loan is more difficult to design and execute. Here everything will be determined by the terms of a particular contract.
How to refuse a loan?
What should a bank client do if he has issued a loan and wants to refuse it:
- Examine the agreement with the financial institution, in particular, the rights of the borrower and the clause on early repayment.
- Write a statement of refusal (if we are talking about repaying a loan after 14 years, then an application for early repayment).
- Submit an application and credit documents to the bank.
- Wait for a decision.
- With a positive answer, transfer the amount of the debt to the bank account.
In case of early return of the funds received by the client, the bank does not have the right to charge additional fees for this operation, however, the borrower will have to pay interest for the use of funds. The sooner the borrower repays the funds, the less interest they pay.
Sample application letter for loan cancellation
What should be indicated in the application for refusal to receive a loan:
- Address and full name of the bank.
- Name of the applicant and his contacts.
- Date of conclusion of the loan agreement and its number.
- Amount received, rate and term.
- The essence of the application: refusal of the loan.
- Statement of additional requirements, if necessary: transfer of funds to the seller's account if it is a trade credit, or a request for a certificate of absence of debt obligations.
- Date, name, signature.
It is not necessary to indicate the reason for the refusal. In the text of the application, it is enough to refer to Article 11 of the Federal Law “On Consumer Loans”, which gives the right to refuse a loan within 14 days without giving reasons.
Loan withdrawal application
Cancellation of a mortgage
If a consumer loan can be legally waived within 14 days, then a target loan (including mortgages) can be waived within 30 days.
The refusal procedure is complicated when the bank has already transferred the money to the seller. If the seller is a developer, then it will be easier to solve this problem. If it is a private person, then the case may go to trial.
You can refuse a loan for housing in an alternative way - to sell a mortgage apartment and pay off the debt ahead of schedule with the money received. But even here there are some nuances: an apartment can be sold for a very long time, and all this time the borrower will need to make payments.
How to cancel a car loan
If the contract has not yet been drawn up, and the car has not been purchased, then the situation is simple: you need to notify the bank of refusing to provide funds. In this case, the application will simply be cancelled. In other situations, terminating the agreement will be problematic:
- If the bank transferred the loan funds to the borrower's account or issued them in cash, then the only option is a refusal within 30 days or early repayment. The borrower will have to pay interest on the actual use of the money.
- When buying a car in a car dealership, the bank transfers the amount to the account of the seller. In this case, it remains only to sell the car and pay off the proceeds with the bank ahead of schedule.
It should be noted that the vehicle purchased in the salon will already be considered used, so the owner will not be able to receive the same amount for which he purchased it when selling it.
Possible consequences
Refusal of a loan or its quick repayment is unprofitable for the bank, since in the end it does not receive the profit that it expected. What threatens the return of funds on the reputation of the borrower?
All contacts of a person with banks are reflected in his credit history. Information about the refusal of received funds or early repayment may appear in the Credit Bureau, the information of which banks use when making a decision on issuing a loan.
However, it is not a fact that refusal of a loan or early repayment (which are permitted by law) may adversely affect further relations with banks. If the return procedure was not complicated by disputes, then most likely the refusal will not harm the borrower's reputation. If there were delays and litigation, then it will be difficult to get a new loan from this bank.
If you refuse an approved loan at the stage of registration (when the money is not issued, and the contract is not signed), then this will not affect the financial profile of the borrower in any way. If the story of refusals in different banks is repeated many times, then financial institutions will be wary of such fickle customers. In this case, there is a possibility that banks themselves will begin to refuse such a client.
It is hardly possible to come up with a win-win algorithm for refusing an already received loan. This would be contrary to the interests of creditor banks and would rather promote consumer extremism than help good borrowers.
Those. if you refuse an already agreed, and even more so received, loan, you need to be prepared for some material losses and nervous stress.
- The first thing to do, just thinking about a loan, is to find out all the nuances of its termination. Under all possible circumstances.
- Do not sign documents without reading them. It is difficult, registration can be hasty, the credit agent is trustworthy, but it is still impossible to sign without reading the contract. As well as signing in advance. (Remember - we have long been accustomed to first sign for receipt, and then receive).
- If it becomes necessary to terminate a credit relationship, you need to contact the bank with a written application, even if the bank employees claim that this is pointless. Let them document it.
- Official, documented communication in case of violation of the client's rights is especially important. In a possible trial, documents, but not memoirs, will have the force of evidence.
- Always try to fully repay all bank claims. Do not leave even very small debts, because they will give the bank the right to continue credit relations, charge interest, penalties, etc. Some loan payments do not depend on the amount of the outstanding balance, but on the very fact of the debt.
- Always demand and receive from the bank and its closure. All credit institutions have forms of such documents.
No wonder they say that before you take out a loan, you should rethink your actions several times. The fact is that sometimes most borrowers apply for a bank loan without much need, and after a certain time they begin to think and calculate their losses. Of course, the decision to apply for a loan should be taken sensibly and reasonably, because after signing a loan agreement, the borrower may experience some difficulties. Is it possible to cancel the loan after signing the contract? And really, is there such a possibility, let's try to figure it out.
How to refuse a loan before signing a loan agreement
Here, asking a similar question, one should be guided by the rule that the relationship between the bank and the borrower is regulated by mutual agreement. That is, the lender and the borrower become parties to financial transactions after the signing of the loan agreement. Recall that, according to the agreement, the lender provides funds to the borrower on the condition of urgency of payment and repayment, in the manner established by the lender with the written consent of the borrower.
From this we can conclude that before signing a mutual agreement, the borrower does not owe anything to the lender, which means that at any stage he can refuse the loan. If you applied for a bank loan, received a positive decision and read the terms of cooperation, a loan agreement was left for you, but you suddenly changed your mind about taking a loan, you can simply apologize to the loan officer and leave the financial institution.
Important! The contract is considered concluded only after it is signed by the borrower, until this moment you can easily refuse to issue borrowed funds without any consequences for yourself.
Refusal of lending after signing the contract before the issuance of borrowed funds
Let's analyze the second situation - you signed a loan agreement, but you haven't received the money yet. This issue has two sides: the terms of the banking agreement and the civil code of the Russian Federation. The relationship between the lender and the borrower is regulated by the loan agreement. Here, banks protect themselves as much as possible from the refusal of credit funds, because they do not receive the expected profit. Here, when asked whether it is possible to refuse a loan, the bank employee refuses to answer because you have already signed the contract.
In this example, an employee of a financial institution violates the provisions of the Civil Code. After all, in accordance with applicable law, a loan agreement is considered concluded only after the transfer of funds. Accordingly, until you have received money from the bank, you do not owe anything. However, in the loan agreement, the bank indicates the procedure for returning borrowed funds and refusing to lend after signing the agreement, which directly contradicts the Civil Code of the Russian Federation.
How to refuse a loan if the contract is signed. First of all, if the funds have already been credited to your credit account, then you should not receive them in cash. If the money was transferred to the account of a plastic card, then you need to act in the same way: you should not withdraw it. After that, you write an application addressed to the head of the financial institution to refuse lending. Based on the results of consideration of your application, you will receive a denial or consent. In the event of a positive decision on your application, the funds from the credit account will again go to the creditor, and if you are refused, you have every right to defend your interests in court.
Important! For the period while your application was being considered, you will have to pay a certain percentage, namely for those days during which you were supposed to use the borrowed funds, although, from a legal point of view, this is not entirely correct, because the money was kept in the bank and you they were not used.
How to cancel a loan after receiving money
The most difficult situation is when the need to refuse lending arose after receiving the entire loan amount. Here, the agreement is already considered concluded, which means that the borrower is obliged to pay the issued loan within the period established by the agreement. But not all borrowers know one nuance, which is that within 14 days after receiving the funds, you can legally refuse a bank loan.
Please note that due to changes in legislation from 2014, each borrower has the right to return the funds to the bank received under the loan agreement within 14 days after receiving the entire loan amount.
It follows that if you received a loan, and you no longer need borrowed funds, you can, without prior notice (written application), put the money in full on the current credit account. But even here it is worth considering one feature - you used a certain period, then you must pay a fee to the bank for it. Calculating the amount of interest will be simple: for this, divide the annual interest by the number of days in a year (365 or 366) then multiply by the loan amount the number of days during which you actually used it.
For example, if the amount of your loan was 200,000 rubles, the interest rate is 18% per year, then for 10 days the interest will be calculated as follows: 200,000*(0.18/365)*10=968 rubles.
So, if you want to return borrowed funds to the bank, provided that the agreement was signed less than 14 days ago, then you first need to find out exactly the amount of accrued interest. That is, contact the bank branch and ask the employee of the credit department to calculate the amount of interest for you for the days when you actually used the loan, after that, pay the funds to the cashier, namely the loan amount and accrued interest. Then contact the credit department again to ask for a document confirming the early termination of the contract between the borrower and the bank.
Please note that the bank does not have the right to charge an additional fee for the return of credit funds.
Loan repayment after 14 days
It may happen that the borrower missed the loan repayment period, but at the same time, the need for borrowed funds has disappeared. There is another option here - full early repayment of the loan. The fact is that, according to the law, the bank does not have the right not to accept the payment of loans ahead of schedule in full, this is in accordance with the current legislation. Among other things, fines, penalties and forfeits for such actions are illegal.
How to pay off the loan ahead of time? Here, the procedure is fully regulated by law, according to which the borrower has the right to repay the loan ahead of schedule, but at the same time notifying the lender at least 30 days in advance. In a word, first you need to write a statement to the bank about the intention to repay the loan ahead of schedule, then pay the principal and interest, but only after 30 days. At the same time, it is imperative to find out the exact amount of the debt on the repayment date, only a bank employee can calculate it for you.
However, in practice, everything looks quite simple, insofar as financial institutions do not have the right to prohibit the borrower from paying loans ahead of schedule, they, on the contrary, have simplified this procedure. For example, in some banks it is not even necessary to write an application for early repayment, more precisely, you can apply in other ways: through Internet banking or through a hotline operator. In addition, some banks have reduced the application deadline to 3 days, which means that the borrower can apply for early repayment, immediately replenish the credit account, and terminate the agreement with the bank ahead of schedule three days later.
Please note that after paying the loan, the borrower must receive a document confirming the early termination of the contract in order to avoid a dispute with the bank in the future.
By the way, one cannot fail to say that each bank has its own procedure for terminating the contract ahead of schedule. That is, in the loan agreement, the bank prescribes the procedure for returning borrowed funds and paying interest. Therefore, first you need to carefully study the loan agreement, and then contact the bank.
Going to court
Refusing a loan after signing the contract is not against the law, and most banks adhere to all provisions of the law, because otherwise they risk their license. But if suddenly the borrower is faced with such a situation that the lender refuses to accept borrowed funds after signing the loan agreement, then his actions can be challenged in court.
What do you need for this:
- loan agreement;
- a statement of claim for early termination of the contract;
- a written refusal of the bank to accept funds after signing the loan agreement.
From this we can draw a definite conclusion that to begin with, you still need to contact the financial institutions to write an application for the return of loan funds after signing the agreement. Based on the results of consideration of your application, the bank must issue you a refusal in writing with an explanation of the reason. In the future, this document will indicate a violation of the rights of the borrower.
Why go to court if you can pay off the loan ahead of schedule? Surely many people ask this question, but here it must be borne in mind that in court the borrower can apply for the cancellation of interest that he will pay within 30 days until the date of early repayment of the loan comes. And if we are talking about large sums and high interest, then for a month the bank can count quite an impressive debt. In court, you can recover the costs of paying the state fee and cancel the interest. Although it is worth noting that, for sure, the case will not reach the court.
Please note that while the trial is ongoing, the bank will demand payment of the loan, according to the payment schedule, and here it is reasonable for the borrower not to evade his obligations, because he will be able to return the amount paid in court, but still his debt will negatively affect his credit dossier.
Thus, if for some reason you change your mind about using a bank loan, then you have the right to return the funds, even if the bank convinces you otherwise. As you can see, you can refuse a loan at any stage, and of course, one cannot fail to say that it is wiser to start thinking carefully before applying for a loan and carefully read the loan agreement.