Your rights

What is a cooling-off period?
Your 14-day right explained

When you sign a credit agreement in the UK you don't have to live with that decision forever — you have a statutory right to change your mind. Here's exactly how long you have, what it will cost, and how to use it.

5 min read • Cash Train editorial team

The short answer

A cooling-off period (formally called a "withdrawal right") gives you 14 calendar days after signing a credit agreement to cancel it, no questions asked.

The right is enshrined in the Consumer Credit Act 1974 and reinforced by the Consumer Credit (Disclosure of Information) Regulations 2010. It applies to most unsecured consumer credit products sold in the UK — personal loans, credit cards, and hire-purchase agreements. You do not need to explain yourself to the lender; simply giving notice within the window is enough.

When does the 14-day clock start?

The countdown begins on whichever of these events happens last:

The agreement is made
The date you and the lender both formally enter into the contract — often the same day as signing online.
You receive a copy of the signed agreement
If a paper copy is sent out, the clock starts when you receive it, not when the lender posts it.
You receive the required pre-contractual information
The lender must give you a Standard European Consumer Credit Information (SECCI) document. If they haven't, the 14-day period cannot legally begin.

The 14 days are calendar days — weekends and bank holidays count. Day one is the day after the triggering event. So if you sign on a Monday, your deadline is the Monday two weeks later at 23:59.

What does it actually cost to withdraw?

Exercising a statutory withdrawal right is not free — but the costs are limited by law to exactly what the lender has legitimately earned during the period you held the money:

You must repay
  • The full capital borrowed
  • Daily interest from drawdown to repayment
You cannot be charged
  • Early repayment penalties
  • Exit or cancellation fees
  • Any remaining scheduled interest
Worked example (indicative, subject to status and affordability)

You borrow £500 under Cash Train Flex (49.9% APR, fixed). You decide to withdraw on day 10.

Daily interest rate: 49.9% APR ÷ 365 ≈ 0.137% per day.
Interest for 10 days: £500 × 0.00137 × 10 ≈ £6.85.

You repay £506.85. No penalty. No further liability.

The total repayable on a full 6-month Flex term would have been £571.26 (monthly £95.21). Withdrawing early on day 10 saves the bulk of that cost — you only pay for the days you actually held the funds.

How to give notice and repay

The process is straightforward but timing matters:

1
Give written notice before the 14-day deadline
Email the lender or use their secure portal to state clearly you are exercising your statutory right of withdrawal under section 66A of the Consumer Credit Act 1974. Keep a timestamped copy.
2
Repay within 30 calendar days of giving notice
The law gives you up to 30 days from the date of your withdrawal notice to return the capital plus accrued daily interest. Repaying promptly avoids further interest accruing.
3
Confirm receipt
Ask the lender to confirm in writing that your account is closed and that no further amounts are owed. This protects you from any future dispute.

Cooling-off vs early repayment — what's the difference?

These are two distinct rights that borrowers often confuse:

Cooling-off / withdrawal
  • Must be used within 14 days of signing
  • Treated as if the agreement never existed
  • Pay capital + accrued daily interest only
  • No impact on the credit agreement record (though the credit search stays on your file)
Early repayment
  • Available at any time during the loan term
  • Agreement is settled — shows on credit file as "settled early"
  • Entitled to a statutory interest rebate (section 94 CCA 1974)
  • Lender may charge a small early-settlement fee (capped by law)

If you are past the 14-day window, early repayment is still a good option. Ask your lender for an early settlement figure and compare it against your remaining scheduled payments.

Does withdrawing affect your credit score?

This is one of the most common worries, and the answer is nuanced. The hard credit search the lender ran when you applied will remain on your credit file for 12 months regardless of whether you withdraw — that can't be reversed. However:

  • The loan account itself should be removed from your credit file (or shown as "withdrawn") because the agreement is treated as never having been made.
  • You will not have a settled or defaulted loan entry lowering your score.
  • A single hard search has a minor, time-limited effect — most scoring models weight recent searches lightly after three to six months.

If you are concerned about your credit file, you can check it for free with Experian, Equifax, or TransUnion at any time to confirm the entry has been removed correctly after withdrawal.

Quick reference

14 calendar days: The statutory withdrawal window — starts the day after the last triggering event.
Capital + daily interest: The only amounts you must repay on withdrawal. No penalties apply.
30 days to repay: You have up to 30 calendar days from your notice to return the funds.
Section 66A CCA 1974: The law that grants the right of withdrawal on consumer credit agreements.
SECCI document: The pre-contractual information sheet lenders must provide before the 14-day clock starts.
Early repayment: Separate right to settle at any time after 14 days; rebate on remaining interest applies.

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← Back to all guides

Related guides

← All guides
Legal rights

Your rights as a borrower — UK law explained

Your statutory rights under the Consumer Credit Act 1974, the 14-day cooling-off period, early repayment rights, hardship standards, and how to complain — including what applies to unregulated lenders like Cash Train.

7 min read →
Legal & rights

Understanding a credit agreement

What's actually in a UK credit agreement, which clauses matter most, your cooling-off rights, and how to spot a bad deal before you sign.

6 min read →
Fraud & safety

Common loan scams — how to spot and avoid them

Advance fee fraud, clone firm scams, fake social media lenders, and how to verify any lender is legitimate before sharing data.

6 min read →
Common questions

FAQ

Under the Consumer Credit Act 1974 (as amended), you have 14 calendar days from the day you receive a copy of the signed credit agreement — or from the day the agreement is made if that is later — to withdraw without giving any reason. This applies to most unsecured personal loans including short-term loans from Cash Train.
You must repay the capital (the amount you borrowed) plus any interest that accrued during the days the money was in your possession. You are not charged any early-repayment penalty, exit fee, or cancellation charge for exercising a statutory withdrawal right. The lender must refund any fees paid at the point of signing.
The 14-day withdrawal right covers most regulated consumer credit agreements — personal loans, credit cards, and hire-purchase. Mortgages have a separate reflection period regime. Some exempt agreements (for example, certain overdrafts repayable on demand) may have different or no cooling-off rules. Always check your specific agreement.
No formal written notice is required by law, but you must give notice to the lender or their representative before the 14-day window closes. A clear written message by email or through the lender's secure portal is best practice because it creates a timestamped record. You should then repay the outstanding balance promptly — typically within 30 calendar days of giving notice.

Know your rights before you borrow.

Cash Train shows you the full cost upfront — and you have 14 days to change your mind. Apply online today.

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