Generally, as a borrower, you are bound from the moment you sign a credit agreement. The law nevertheless authorizes you to renounce your engagement provided that the general conditions of the lender so provide in a clear and concise manner. Let us take stock of this significant protection organized by the legislator for consumers.
Deadlines for a credit agreement
As a consumer, you can renounce the credit contract for a period of fourteen days from the signing of your contract. The law covers “calendar days”, that is to say, every day of the week, including Saturdays, Sundays and legal holidays.
However, the law provides that the period of fourteen days may begin to run on the day on which the consumer receives the general conditions, and this, if this date is later than the date of the conclusion of the credit contract.
Exercise of the right of withdrawal
You are never required to justify the reasons for which you wish to make use of your right of withdrawal. In addition, the law is not very formal since you only need to notify the financial institution, by registered letter or by any other medium accepted by your co-contractor (for example, a simple ordinary letter or an email), your intention to renounce the contract.
The deadline is deemed to have been respected if the notification was sent before the expiration of it. It therefore does not matter that the lender receives your letter after the fourteenth legal day since it is the date of dispatch (postmark) that is authentic.
If it is a credit agreement under which an item is made available to you, you must return it immediately after notification of the withdrawal. It goes without saying that the right of withdrawal does not apply, if you have consumed, damaged or lost the property.
For any other credit agreement, that is to say when you receive capital, you are required to repay this capital immediately to the lender and at the latest within 30 calendar days of notification of the waiver. In both cases, you will be required to pay the interest due for the credit withdrawal period, calculated on a daily basis at the agreed debit rate.
The withdrawal from the credit contract automatically entails the termination of accessory service contracts. For example, your outstanding balance insurance contract will also end, so the insurance premium already paid will have to be returned to you.
The lender will not be able to claim any other indemnity from you for any reason whatsoever.