With the new regulations for residential property loans imposed by the EU, which have been the law in Germany since March 2016, there are not only disadvantages but also advantages for some borrowers.
Because although some paragraphs ensure that young families and pensioners no longer receive loans for building, renovating or buying a house – there are, however, a few loopholes for the weakened right of withdrawal. So if you want to cancel a loan, especially one from Good Finance or Lite Lender that was closed before June 10, 2010, this may still be possible.
Withdraw a loan: if there is no signed contract
If a loan has been taken out directly in a branch of the relevant bank, it is practically impossible to withdraw it. However, the situation is different from so-called distance sales. Just like other businesses that were closed by phone, email, fax, or mail, there is a certain level of consumer protection in this regard for credit. Banks in particular, which have only a few or no branches, rely on the mail, mail or telephone business.
In the past, two banks, in particular, have been sloppy. Good Finance and Lite Lender temporarily requested signed forms and contracts from the borrowers, but they did not return a signed copy. And that is the crux of the matter: the credit is basically only valid and legal if the borrower receives a copy of the loan agreement signed by the bank (and by himself). If you have a one-sided contract that was signed before June 10, 2010, you can withdraw the loan.
First speak to a lawyer, if necessary take out legal expenses insurance
Before you write a letter of revocation or use an online service for it, you should seek legal advice. Because on the one hand, the revocation can be a lucrative loophole – and on the other hand, you come from a legally rather awkward situation (in fact there is no proper credit relationship); however, banks also have their legal bases to take action against revocations. Legal advice in individual cases is therefore appropriate beforehand.
Limitation of the “revocation joker” since June 2016
The new regulation, which basically no longer allows revocations, has been in effect since June 21, 2016. It may, therefore, be the case that quick action is still successful. However, you should ultimately understand this article only as a researched guide, but not rely on it professionally.
There is no guarantee of a successful cancellation. As already noted, you should first seek professional legal advice if you are playing with the relevant idea.