Bank settlement : cancellation of loan agreement free of charge up to 91 days from receipt of settlement letter
Customers may terminate their credit agreement by early repayment free of charge up to 91 days from the date of receipt of the clearing letter; Bank.
Good Finance Bank also highlights another important deadline
which is the 31st day after receiving the letter of clearance. Only then can the termination be initiated, as the HUF loan agreement will become effective on the 31st day.
From a legal point of view, this is the point at which settlement takes place, ie if a cancellation occurs before this deadline, it will apply to a pre-settlement (eg foreign exchange) loan agreement, the bank explains. Accordingly, the notice of termination must be submitted to the selected new financial institution within 60 days of the 31st day.
The financial institution emphasizes that if the customer feels they have the new bank selected, it is worth inquiring about what happens when they submit their application, but the deadline is 91 days, so they have to cancel the contract with the old bank for free no response from new bank.
There is a financial institution that can help with this situation,
Even if the customer slips out of the gratuitous repayment period, they will incorporate the old bank’s final repayment fee into the loan amount, writes Good Finance.
The bank recommends that you consider changing your loan to look carefully at your loan offerings. The outstanding forint amount in the clearing letter, the monthly repayment installment, and the remaining maturity are needed to make a more accurate comparative calculation, which can tell you how much the new credit comes to the customer.
Start a new contract without the letter of termination
It is also worth looking into which banks are the ones where you can start a new contract without the letter of termination of your existing debt and proof of your outstanding debt.
“It may be sufficient to initiate a written cancellation of an existing loan after a positive credit assessment of the new loan,” the statement read.