Borrower’s rights in the process of obtaining a bank loan
Everyday use of online banking, possession of banking products by the majority of society forces us to contact banking institutions. Contact can take place completely online, dealing with all matters via online banking, or visiting our bank’s branch in a traditional way. Due to this state of affairs, it is worth knowing what rights we have as borrowers or customers of banks. What are the responsibilities of the adviser we meet at the bank and what are the responsibilities of the bank itself. Knowledge will allow us to effectively enforce and exercise our rights. The rights of the borrower are not only the entries in the bank documents, but actually the rights due to us that are worth using!
What rights do you have that the bank must abide by, what obligations does the bank have towards the borrower?
When applying for a cash or consolidation loan, we can often act in a hurry. The bank is obliged to inform us about all the rules of the loan and its costs. However, despite the general information, sometimes we may not understand something or read what we see only after signing the loan agreement. The very process of signing a loan agreement in banks looks like we get dozens of pages written in fine print. How to read and understand exactly when in the facility, seeing more customers in the queue and adviser rush?
Withdrawal from the bank loan agreement up to 14 days
Therefore, a very good tool was created for borrowers which is the option of withdrawing from the loan agreement. At any time up to 14 days after signing the loan agreement, each customer may cancel it by returning the financing to the bank. This solution does not burden the customer, there are no additional fees. We simply give back how much we borrowed without taking into account commission or insurance fees. Furthermore, the customer is not required to provide a reason for resignation. This is his autonomous decision in which the bank does not interfere.
Withdrawal from the loan agreement can be a bit problematic if we consolidate our loans. If the loan funds are transferred by other banks to our liabilities it may no longer be possible to withdraw these instructions.
Document regarding fees as the basis for selecting an offer
Each bank product, whether it is a ROR (Savings and Settlement Account) cash, consolidation loan or account limit must have a document regarding fees within a given product. A simple list of the costs we incur using the product proposed by the bank. Knowledge of this information will help us choose the cheapest loan or ROR.
Each bank employee is required to issue such a document to the customer before the customer signs a contract with the bank for any of these products.
It is the bank’s responsibility to provide reliable information. The loan that the client is trying to affect will affect his future, its repayment is the borrower’s next 10 years. It is even more important that the decisions taken by borrowers result from specific and reliable information, not the promises of a bank employee.
You don’t have to sign the loan agreement right away
Analyzing the rights of the borrower, we can see that the bank also gives the opportunity to calmly think about how much the loan he proposes. Depending on the banks, there are different periods of validity for the generated contract to be signed by the customer. Averaging it can be from 7 to 14 days. So much time we can be sure that the loan agreement generated by the bank will be waiting for our signing. After this time, the bank may cancel the offer and you will need to re-apply for it.
Mortgages have different laws. Their scope is regulated by the Mortgage Act. For example, it imposes an obligation on the bank to take a credit decision within no more than 21 days of submitting the application. This means that the bank cannot deceive the customer for longer after asking for additional documents. He is obliged to make a decision in such the longest time. A rigid time frame makes it easier for borrowers to plan ahead.
In summary words:
We have only discussed some of the obligations imposed on banks. The ones we mentioned focused on the rights of borrowers and their possibilities. Knowledge of such factors, obligations of a bank or banking advisor will certainly help us when applying for a cheap cash or consolidation loan. It will avoid unpleasant disappointments when you accrue additional fees for using our bank account. Borrower’s rights, ie knowledge, are definitely the basis for applying for bank loans