The payday loan withdrawal period.
The payday loan is a consumer credit reserved for individuals. Like any loan, the payday loan commits the borrower, and its subscription must be a considered act. It is accompanied by a withdrawal period.
What is the payday loan withdrawal period?
The payday loan withdrawal period is a prerogative given to the borrower who signed a payday loan offer. The latter may, during a certain period following the signing of the contract, reverse its decision. The contract will then be canceled and the borrower will not be committed.
The objective of the right of withdrawal of the payday loan
The objective of the right of withdrawal of the payday loan is to allow the borrower to mature his decision and to take the full measure of his commitment. The goal is to avoid an impulsive decision dictated by the sole influence of a sales pitch.
The deadline for the right of withdrawal from the payday loan
The withdrawal period was once 7 days. Since the Hamon law of March 17, 2014, borrowers of consumer credit can now count on a withdrawal period of 14 clear days. The clear day is a period of 0 to 24 hours. The period begins to run the day after the day the loan is signed. The end of the period is also not taken into account. In addition, if the deadline takes place on a Saturday, Sunday or a public holiday, the term is postponed to the next working day.
The procedure for exercising the right of withdrawal
The lending organization attaches a withdrawal form to its loan offer. It must be filled out thoroughly and sent to the address indicated and within the time limit by registered letter with acknowledgment of receipt. It should be noted that withdrawal is a right in the hands of the borrower and the latter is not required to give a reason for his decision to renounce the loan.
payday loan: effect of withdrawal
The payday loan contract does not become final until the borrower’s withdrawal period has ended. In addition, the borrower’s approval by the lender is now mandatory. The organization granting the loan will therefore also have to validate the contract. If the right of withdrawal is used, the loan contract is canceled. No compensation will be requested from the borrower for having renounced the loan.
The right of withdrawal makes it possible to ensure that the borrower takes the measure of its commitment. In all cases, before applying for a payday loan, it is recommended to carry out an online simulation. Free and without obligation, it allows you to determine the amount to borrow, the number and the amount of monthly payments according to your situation.