The answer is yes. The government of Spain regulated the option of withdrawal of consumer loan contracts with the objective of protecting customers. All borrowers have the right to withdraw the contract for the personal loans requested, in accordance with Law 16/2011, of June 24, on the consumer credit agreement. This Law also introduces more information, transparency and consumer assistance in contracting consumer loans. The mandatory evaluation of the creditworthiness of the borrower, penalties for improper collections, interest limitations, a regulation of the intermediaries of the loans and the related services. Also the obligation to present the calculation of the APR (Annual Equivalent Rate) that defines the total cost of a loan or credit in a complete and clear way for the potential client.
The right of withdrawal is the possibility that the borrower has to cancel without problems the contract of a loan or credit. However, there are also certain restrictions and obligations to do so:
Deadline to access the right of withdrawal
This Law published in 2011 introduces the right to withdraw from the contract in a certain period of time and empowers the consumer to leave it without effect. According to Article 28 of the Law, you can exercise this right without indicating the reasons, without penalties, and within 14 calendar days from the date of signing the contract.
Which means, you should always communicate your intention to withdraw from the contract in these 14 days, since after this period you will lose this right. Therefore, it is always necessary to respect the deadline and send the notification before its expiration. By paper document or any other durable support available to the lender and accessible to him.
What is the cost of withdrawal?
The right to withdrawal also has a financial cost that you must bear. Although there is no penalty for withdrawal, it is mandatory to reimburse the amount borrowed plus interest generated from the day of the grant until the date of return.