No penalties or fees: Ukrainians were told how to refuse a credit agreement.

According to Ukrainian legislation, consumers have the right to refuse credit agreements even after they are signed. The Law on Consumer Credit provides borrowers with the opportunity to withdraw from the loan within 14 days. After submitting a request to the bank or financial institution, the borrower must return the funds received along with interest if the money has already been received. Importantly, the bank cannot demand penalties or compensation.

However, this right does not apply to certain types of loans, such as mortgages or collateral loans. In the case of purchasing goods on credit, the conditions for refusal may be specified in the contract with the seller.

If the 14-day period has expired, the consumer can still change their decision regarding loan repayment. They have the option to pay off the principal amount and interest or take out a new loan at another bank under more favorable conditions.

To avoid problems, experts recommend carefully reviewing the terms of the credit agreement before signing it and, if necessary, consulting lawyers for advice. It is also important to act promptly, as the right to refuse without additional payments is valid for a limited period.

Analysis:

Ukrainian legislation provides consumers with significant rights in lending. Consumers have the opportunity to refuse a loan even after it has been concluded, and the bank cannot demand any penalties or compensation. This allows consumers to be confident in their financial situation and change their lending decisions if necessary. However, it is important to remember that such rights do not apply to certain types of loans, such as mortgages or collateral loans. Additionally, the conditions for refusal may be specified in the contract with the seller in the case of purchasing goods on credit.