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Loan contracts... cancellation period?
I was supposed to be having the facias and guttering replaced on my home. I took a loan through the company doing the work to pay for it. I have recieved written confirmation from the loan company agreeing the loan. Now due to a change in my circumstances I cannot afford the work to be done (my car has completly died and I need to get a loan for a new car) I cannot afford 2 loans. I recieved my loan approval on Friday 28th Sept (letter dated 27th Sept) I sent notice of cancellation on Monday 1st October they recieved it today. A guy from the company has just phoned to say it was out of the agreed canellation period of 5 days. I calculated today was my 5th day so i was within the 5 day period. He said the period started on the 27th when the letter was dated. My contract says... If we are arranging a loan, you have days from RECIEVING written confirmation from the loan company to cancel the contract. If I received it 28/10 today 2/10 would be within the 5 days. What are my rights?
2 Answers
- Anonymous1 decade agoFavourite answer
You have the right to rescind the loan, return the loan proceeds, have the lien cancelled and any fees you paid returned. The mandatory cooling off period is satisfied by mailing the notice of recission within the specified period after the loan closes. Not just when the loan was approved, but when you signed the paperwork for the loan. This is all detailed in the Truth in Lending Act, 15 USC §1635.
The creditor has violated the Truth in Lending Act. You can sue for this. You can also take this up with whatever government agency regulates the lender. Who this would be depends on where you and the flavor of lender.
National Banks' duties under Truth in Lending are governed by the Federal Reserve Bank and Comptroller of the Currency. Loan companies are usually regulated by the State Banking Department. An attorney, whom you should be able to get started on a contingent fee basis, would be a great help. By the way, all these statutes provide that your attorney's fees will be paid by the bad guys in addition to your recovery, which is why a contingent fee lawyer is the way to go.
- hexeliebeLv 61 decade ago
You have the right to take the contract and any supporting documentation to a local attorney for a review and an assessment of your options.
