cancelling a loan

muppet · 9 Jun 2011 at 18:24

hi
my mum is in the process of buying a used car and she is paying some cash and having the rest on finance . she signed the finance agreement yesterday ( 8/6/11 ) . i have since found her a better finance deal . is it still possible to cancel the original finance an go wit the new deal i.e is there still a 7 day cooling off period even though its not distance .

thanks

Glaucus · 9 Jun 2011 at 18:25

Read the contract. But there should be a cancelling period.
A quick google says 7days although a bit of confusion if it applies if you signed on the premises. But anyway read the small print it will be in there.

d_brennen · 9 Jun 2011 at 18:25

It's a small print job but I imagine there is a get out as it was so recent

Gornall · 9 Jun 2011 at 18:27

All loans now have a "back out" period of 14days I believe. Since February anyway.

European Consumer Credit Directive. You will be expected to pay the interest for them few days though.

muppet · 9 Jun 2011 at 18:50

she signed on the premises . ill have a look at the contract on saturday when i see her

Slade2 · 9 Jun 2011 at 19:02

you might find that a condiction of sale is that you have to use the `approved` finance contractor. I would imagine most car sales companies get a nice slice of the profits from the finance company and hence insist you take out there finance, although I could be wrong.