A Guide: Consumer Credit
Under the Act you are given a period of 14 calendar days in which to withdraw from a credit agreement without having to provide the creditor with a reason. The purpose of this provision is to provide you with an opportunity to change your mind if on reflection you feel that the credit agreement is not right for you. You do not have to wait until the agreement has been concluded or all the information has been provided before withdrawal. You need only give notice to the creditor within 14 days.
You must, however, repay the credit that has been provided and any interest that has accrued between the credit having been provided and repaid. This usually means paying back the money that has been lent to you plus the interest for the days that you have had it. The original credit agreement will include the amount of interest payable per day.
If however you have decided to cancel a credit card, the interest rate will naturally depend on how much credit you draw down; the creditor must give you this information on request.
The creditor is under an obligation to ensure that the procedures for withdrawal and repayment are clear and simple. You will not be disadvantaged in any way by cancelling a credit agreement.