Can I cancel the loan?

There are lots of different types of loan, and many different agreements. Check the terms and conditions of the loan agreement to find out if they state that you have the right to cancel. If the agreement does not say that you have the right to cancel then you are unable to do so. It is also worth remembering that some types of unsecured loans or finance facilities cannot be cancelled if the agreement was signed in front of the trader in their business premises.

However, even though you may have signed an agreement that does not give you the right to cancel don’t think that all is lost. You could still try speaking to the trader or loan / finance company concerned and ask them to cancel anyway. If you don’t ask you won’t get! Do not rely on this though as some traders are not that concerned with being helpful and having a good reputation, their profits are more important. Also consider that if the agreement was for example for new windows and the window company with whom you signed the agreement have subsequently made the windows ready for fitting, they are unlikely to want to cancel the agreement, but you could always try reaching some arrangement with them.

The right to cancel varies considerably, not only between different types of loan but also where the contract was signed. Always check the loan agreement- if the agreement does not say that you have a right to cancel then you cannot do so. For example, with some types of unsecured credit you cannot cancel if the agreement was signed in the traders shop, office or other business premises.