Your rights

Your right to withdraw
from a loan

UK law gives you 14 days to change your mind on almost any personal loan — with no questions asked and no penalty. Here's exactly what happens, what you owe, and how to use the right cleanly.

5 min read • Cash Train editorial team

What the right actually is

Section 66A of the Consumer Credit Act 1974 gives every borrower a statutory 14-day cooling-off period on most regulated consumer credit agreements — including personal loans, short-term loans, and credit cards.

The clock starts on the later of: the date the agreement was made, or the date you received the full terms and conditions. You do not need a reason. You do not need the lender's permission. You simply notify them and repay the money promptly.

This is a legal right — lenders cannot contract out of it or charge an exit fee for its exercise. It sits alongside (but is separate from) any voluntary cancellation terms a lender may offer.

The timeline at a glance

Day 0 — Agreement signed
The 14-day window opens from this date (or the date you receive the full terms, if later).
By Day 14 — Send notice
Notify the lender in writing that you are exercising your right to withdraw. Email is sufficient provided you keep a copy. Keep the wording simple: state the agreement reference, the amount borrowed, and that you are withdrawing under s.66A CCA 1974.
Within 30 days of notice — Repay
You must repay the principal (the amount you borrowed) plus interest accrued from the drawdown date to the actual repayment date. No other charges apply.
Account closed
Once repaid, the lender must treat the agreement as never having had effect — except for any interest already accrued to the repayment date.

What you owe — and what you don't

The only amount owing after a valid withdrawal is the capital you borrowed plus daily interest for the exact number of days you held the money. Nothing else.

You DO owe
Capital borrowed (the principal)
Interest accrued day-by-day to repayment date
You do NOT owe
Early repayment charges
Exit or administration fees
Remaining scheduled interest
Penalty charges of any kind

The figures below are indicative and subject to your individual agreement. Always check your specific credit agreement for the daily interest rate that applies to you.

Worked example

Suppose you take out a Cash Train Flex loan — £500 over 6 months at 49.9% APR (fixed). Your total repayable if you see the loan through is £571.26, in six monthly payments of £95.21. But you decide to withdraw on day 7.

Withdrawal cost calculation (indicative)
Principal £500.00
Interest (7 days) ~£4.75
Fees £0.00
Total to repay ~£504.75

Indicative figures only. Subject to your credit agreement. Actual daily rate derived from your agreed APR.

In this example, using the 14-day right saves you roughly £66.51 compared with running the loan to term. The key point: the savings materialise automatically — you do not need to negotiate with the lender or prove hardship.

How to send your withdrawal notice

There is no prescribed form for a withdrawal notice. What matters is that it is clear, timely, and traceable. Recommended approach:

Email the lender directly
Use the customer services or complaints address shown in your credit agreement. Subject line: "Notice of withdrawal — agreement [your reference number]".
State the statutory basis
One sentence is enough: "I am exercising my right to withdraw from credit agreement [ref] under section 66A of the Consumer Credit Act 1974."
Keep a timestamped copy
Forward the sent email to yourself or save to a cloud folder. You may need to prove the date you gave notice if a dispute arises later.
Arrange repayment immediately
Contact the lender to confirm the exact repayable amount — they must tell you. Pay by bank transfer and keep the payment confirmation.

Withdrawal vs early settlement — what's the difference?

These are two distinct legal rights that apply at different points in the loan lifecycle:

14-day withdrawal right
  • Within 14 days of agreement
  • Section 66A CCA 1974
  • Repay principal + accrued interest only
  • No fees whatsoever
Early settlement right
  • Any time during the loan term
  • Section 94 CCA 1974
  • Repay balance + statutory rebate on interest
  • Possible early repayment charge (check agreement)

If you miss the 14-day window, your early settlement right under s.94 is the next tool. It gives you a rebate calculation on the remaining interest — a different formula, but still a legal protection worth using.

Quick reference

Window: 14 calendar days from agreement date (or receipt of terms, if later)
Statute: Section 66A, Consumer Credit Act 1974 (as amended)
Notice: Written notification to lender — no prescribed form required
Repayment deadline: 30 calendar days from the date you give notice
What you owe: Principal + daily interest accrued. No fees, no penalties.
Credit file: Original search stays; no negative marker added for using the right

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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.

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Common questions

FAQ

It applies to most regulated consumer credit agreements in the UK under section 66A of the Consumer Credit Act 1974, as amended. However, it does not apply to mortgage-secured credit, pawn agreements, or certain restricted-use credit tied to a specific purchase where the lender has already paid the supplier. Check your credit agreement's pre-contract information to confirm.
No. The right to withdraw is unconditional — you do not need to explain yourself to the lender, and the lender cannot refuse or penalise you for exercising it. You simply need to notify them within the 14-day window and repay the principal plus accrued interest promptly.
Under UK law you must repay the outstanding capital plus any interest accrued to the date of repayment within 30 calendar days of sending your withdrawal notice. Missing this deadline means your notice may lapse and the original agreement could be treated as still in force.
The original credit search will still show on your credit file because it was carried out before the agreement was made. However, using the withdrawal right does not add a default or negative marker. Once repaid in full, the account should be updated to show as settled. If you are concerned, ask the lender in writing to confirm how they will report the account to the credit reference agencies.

Borrow with confidence.

Cash Train shows you your total repayable upfront — and your right to withdraw is always there if you change your mind.

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