Do I Have a Cooling-Off Period After Signing a Credit Agreement?

When you take out a personal loan, you benefit from a cooling-off period after signing a credit agreement of 14 days. During this time, you can cancel the loan without justification.

Cooling-Off Period After Signing a Credit Agreement

Such a cooling-off period starts on the day you sign the contract. Or, if the contract is received containing the details required by law, on the day of receipt if it occurs after signing.

If you decide to cancel your loan, you must notify your lender. This should be done by registered mail within 14 days. However, check your contract. It might allow cancellation by a simple email.

If you purchase a service or goods without entering into any contract, you still have the option to cancel.

Such cancellation is only possible in certain scenarios:

• If the contract for a service or goods is concluded remotely, for example, online. In this scenario, you can cancel within 14 days from the day after the delivery of the service or goods. This is only possible if you receive several pieces of information such as the characteristics of the service or goods purchased, the complete identity of the seller, the existence of a right to cancel, and the price.
• Conclusion of the contract takes place outside the seller’s premises, which means:
  • In an exhibition, fair, or trade show, provided the price is not paid immediately or is above 200 euros.
  • You buy a motorcycle for 10,000 € and request a personal loan the next day, granted with a contract stating the credit was provided for this motorcycle purchase.
  • During an excursion organized by the seller or on their behalf outside their store. This is the case, for example, if you participate in an abbey tour and are offered to buy a set of glasses payable over 6 installments.
  • At your workplace or home. This is the case if a home appliance seller visits your home, convinces you to buy a vacuum cleaner, and you later regret the purchase.

In these situations, you can retract within 7 days from the day after signing the contract. Thus, no cancellation of a purchase contract is possible outside of these aforementioned scenarios.

Effects of Retraction

To determine the consequences of this cancellation, four situations are specifically distinguished:

1. 1. A service or goods purchased from a seller A and a personal loan contracted with a lender B. Cancellation in this case does not affect the contract.
   2. You buy a service or goods from a seller A and apply for a related loan with a lender B. In this case, the cancellation has no consequence on the contract made with the seller. It necessarily proceeds.
   3. A service or goods acquired from a seller A and a credit contract made with a lender B remotely. You can cancel the personal loan contract without affecting the sales contract.

• You purchase a service or goods remotely from a seller A and make a loan with a lender B, remotely or not.

1. In this scenario, the purchase contract can be canceled within 14 days of delivery. This retraction automatically triggers the cancellation of the loan contract.

Consequences of the Right to Retraction

Tangible movable goods are returned as soon as you cancel the credit used to acquire them.