Withdrawal Loan – Right to a withdrawal credit

This succeeds in the legally effective revocation of loans & insurance. However, if borrowers are bound by long-term contracts, they may have a right of withdrawal.

Right of withdrawal and withdrawal period for loans

Right of withdrawal and withdrawal period for loans

Consumers who conclude a purchase agreement have the right to withdraw from the purchase contract without any problems within two calendar weeks (1). The loan agreement can be used by both consumers who have taken out loans from credit institutions and consumers who sell goods by the trader through a loan. Those who bought their goods for cash can not exercise this right.

The precondition for the objection, however, is that the amount of the financing to be paid exceeds EUR 200 and the interest has been paid. In the case of free loans, the so-called “zero-percent financing”, no withdrawal can be declared for orders that were closed before 31 December 2016. With effect from 23 May 2016, a new regulation came into force, according to which loan agreements for financing zero percent can also be terminated within two calendar weeks (2).

Reasons for a resignation

Reasons for a resignation

Given the current low interest rates, there are likely to be few reasons for a resignation. For consumer loans in accordance with 355 para. 1 BGB, the period lasts two calendar weeks and ends with the conclusion of the contract (3). The right of withdrawal must always be given in writing, otherwise it is extinct. The revocation can be made informally and without stating reasons.

After the initiation of the opposition, the consumers are no longer tied to the sales contract. The objections to the loan agreement are reserved only for consumers (not entrepreneurs, firms or other self-employed). This right applies only to the customers. In the event of a revocation, the financing banks must contact the merchant for reimbursement. Under no circumstances does the consumer have to pay default interest.

Right of objection for “old” credit agreements expired – Wrong cancellation policy for credit and loan agreements!

For consumer credit agreements from 01.11.2002 to 10.06.2010 the right of withdrawal under the law expired on 21.06.2016. Anyone who has not been legally in the process of revoking his consumer loan to the house bank will, under the circumstances, find it difficult to claim. In the case of mortgage loan agreements pursuant to section 492 (1a) sentence 2 BGB in the version in force from 1 Aug. 2002 to and including 2 Jun. 2010, which were concluded between 1 September 2002 and 2 Jun continued right of revocation no later than three months after the first university year, if the continuance of the right of revocation is based on the fact that the revocation instructions issued to the consumer did not correspond to the requirements of the Civil Code valid at the time the contract was concluded.

In the case of door-to-door transactions, p. 1 applies only if the mutual benefits under the consumer credit agreement have been fully paid by the end of the period on 22 June 2016. Incidentally, the further rights of revocation expire only one calendar month after the mutual benefits from the contract have been completely fulfilled. Anyone who has made the withdrawal in time, however, can continue to assert his claims.

For this the limits of the statute of limitations apply. Consumer credit agreements concluded between 11.06.2010 and 19.03.2016 are not affected by this new regulation. These can still be revoked if there are errors in the required mandatory information. Of course, these mandatory details also contain applicable information on the right of withdrawal. In addition, real estate consumer credit agreements concluded after March 19, 2016 can only be revoked to a limited extent.