The Cooling-Off Period Conundrum: A Nigerian Borrower’s Dilemma

As a borrower in Nigeria, you’re entitled to a three-business-day cooling-off period to cancel or reject a bank loan without penalties, interests, or consequences, as per Regulations 4.3.6 of the Consumer Protection Regulations. However, this provision can be a double-edged sword if not properly understood.

Case Study :

I recently applied for a ₦2 million loan, only to discover that the interest rate would be ₦700,000. Horrified, I quickly sought to cancel the loan, but the cancel button had vanished, and the ₦2 million had already been credited to my account. When I contacted customer care, I was informed that I had to pay the interest, despite my protests.

The Cooling-Off Period: A Borrower’s Right

In Nigeria, the cooling-off period for bank loans, microfinance loans, and fintech loan apps is three business days. This allows borrowers to cancel or reject a loan without incurring penalties or interest. However, this right can be waived if explicitly stated in the loan agreement.

Key Considerations

Before taking action, it’s essential to:

1. Review the loan agreement : Check if you waived the three-day cooling-off period.

2. Confirm evidence of cancellation : Verify that you contacted the customer care within the three-day window to cancel the loan.

Seeking Redress

If you’ve met the above conditions, you can consider suing the bank and demanding damages. However, it’s crucial to understand the terms and conditions of your loan agreement and the applicable regulations.

Takeaways

– Always carefully review loan agreements before signing.
– Understand your rights as a borrower, including the cooling-off period.
– Keep records of communication with customer care.

By being informed and vigilant, Nigerian borrowers can protect their rights and make informed decisions about their financial obligations.