How to cancel a payday loan?


The payday loan is an unrestricted loan that can be used for any type of expense. Whether to buy a new TV or a boat, the choice is wide. Although it is governed by a contract signed between the lender and the borrower, the payday loan can be terminated at the request of the borrower in several cases.

Termination of payday loan upon early repayment

Termination of personal loan upon early repayment

Article L312-34 of the Consumer Code defines the right of the borrower to repay a payday loan in advance. The borrower must therefore pay the sum corresponding to all of the remaining installments in order to settle and terminate his credit. To do this, he must send a registered letter with acknowledgment of receipt to his lender to inform him. By prepaying, the borrower does not pay interest or fees related to the remaining term of the loan.

Indemnities may however be requested during an early repayment of a payday loan if the amount of the early repayment is significant: it suffices to refer to the terms provided for this purpose in the contract. It should be noted that in the case of an affected loan, the simple cancellation of the sale of the property for which the loan was intended is enough to cancel it, which is not the case for the payday loan which is not affected.

The termination of the payday loan thanks to the right of withdrawal

The termination of the personal loan thanks to the right of withdrawal

Within the framework of the acceptance of an offer of payday loan, the deadline for withdrawal of personal credit legally provided is 14 calendar days from its signature, to exercise its right of withdrawal. Any borrower can therefore avail themselves of it without having to justify their request to the lending organization.

Whether it is for a change in personal situation or simply for a change in the purchase which motivated the need for a payday loan, the bank or the credit institution must not ask for the reasons nor claim any fees. folder. Once again, it suffices to send a registered letter with acknowledgment of receipt informing you of the use of the right of withdrawal. In the event that the funds have been released within this period of time, it should not be touched so that the withdrawal can be made without incident by the lender once the request is received.

How to request termination?

How to request termination?

In the case of an early repayment of payday loan, as in the case of a right of withdrawal, it is mandatory for the borrower to send a registered letter with acknowledgment of receipt to inform the lender of his intention. In order to guard against any abuse on the part of banking and credit organizations, it is worth mentioning the article of the consumer code giving the right to exercise this request: L312-34 for early repayment, and law N ° 2010-737 for the right of withdrawal. It is also necessary to recall the references of the loan file and ask for the other steps to be taken to terminate the personal credit.

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