Credit cancellation Can I cancel my credit?

Is Credit Cancellation Possible? The cancellation of the credit can be done through a separate notice, but depending on the type of credit, it can be done at any time or within 14 days of the contract being drawn up or received. However, you should not apply for credit on a light basis, as there are always costs involved in canceling a loan. Loans must always be carefully compared when applying.

Termination of credit can also come to mind if your ability to pay or your personal finances are shaken. There are handy applications for managing your finances that allow you to streamline your financial situation.

Termination of Continuing Credit


Continuing credit, such as card credit, can be terminated at any time. The loan can be terminated for a maximum of one month and is free of charge. However, the regular costs incurred before the termination of the contract must be paid. If the costs have been prepaid, the charges for the period after termination shall be refunded. In other words, if you’ve already paid your next month’s billing costs, you’ll need to refund that charge.

Terminate the ongoing credit

Terminate the ongoing credit

It should also be remembered that the lender may terminate the ongoing credit. However, the credit will not mature on the expiry of the credit agreement, but will be repaid under the terms of the agreement and in accordance with the payment plan. Notice of termination must be given in writing or electronically.

There is usually a clause in the credit agreement that allows the lender to deny the consumer the right to use the ongoing credit and, for example, close the credit card. In this case too, the credit used to be paid in accordance with the contract and the debt is not due in full.

Termination of credit agreement

Termination of credit agreement

The consumer credit agreement may be canceled within 14 days of the conclusion of the agreement or after receipt of the credit agreement in writing or electronically. The creditor must be informed of the cancellation in writing or by email, for example. You do not need to tell the lender the reason for the termination.

The lender may claim compensation for the cancellation of the credit if the compensation has been announced prior to the conclusion of the contract and is mentioned in the terms and conditions. The amount of compensation is usually the interest rate on the credit for the period the credit was available to the person. The lender may also, in accordance with Chapter 7, Section 20 of the Consumer Protection Act, claim compensation for payments made to the authorities.

If the credit is taken at a distance sale, the creditor’s right to compensation depends on the size of the credit.

  • In the case of a loan of EUR 200 to EUR 75 000, the borrowing rate
  • For loans of less than $ 200 and more than $ 75,000, the effective annual interest rate will be charged (exercising the right of cancellation may be expensive)

The funds must be credited to the creditor’s account without delay, and no later than 30 days after the notice is sent. If the refund is not made within this time, the original agreement will resume.

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