S.L. 376.10 Art. 26Right of withdrawal. S.L. 330.07.

(1) Consumers may withdraw from the credit agreement without giving any reason within a period of fourteen (14) days, and such withdrawal period shall begin either:

(a) from the day of the conclusion of the credit agreement; or

(b) from the day on which the consumer receives the contractual terms and conditions and the information in accordance with regulations 20 and 21, if such day is later than the date referred to in sub-regulation (a):

Provided that the deadline referred to in sub-regulation (1) shall be deemed to have been met if the notification referred to in sub-regulation (4)(a), is dispatched by the consumer to the creditor before such deadline expires.

(2) If the consumer has not received the contractual terms and conditions and the information in accordance with regulation 20 and 21, the withdrawal period shall in any event, expire twelve (12) months and fourteen (14) days after the conclusion of the credit agreement:

Provided that this shall not apply if the consumer has not been informed about his right of withdrawal in accordance with regulation 21(1)(p).

(3) Where a linked credit agreement for the purchase of a good with a return policy ensures a full refund for a certain period of time exceeding fourteen (14) days, the right to withdrawal shall be extended to match the duration of such return policy.

(4) Where the consumer exercises the right of withdrawal, he shall:

(a) notify the creditor in accordance with the information given by the creditor pursuant to regulation 21(1)(p) on paper or another durable medium chosen by the consumer and specified in the credit agreement within the deadline established in sub-regulation (1); and

(b) pay to the creditor the capital and the interest accrued thereon from the date on which the credit was drawn-down until the date on which the capital is repaid, without any undue delay and in any event not later than thirty (30) days after the dispatch of the notification referred to in paragraph (a):

Provided that the interest referred to in sub-regulation (1)(b), shall be calculated on the basis of the agreed borrowing rate and the creditor shall not be entitled to any other compensation from the consumer in the event of withdrawal, except compensation for any non-refundable charges paid by the creditor to any public administrative body.

(5) Where an ancillary service relating to the credit agreement is provided by the creditor, or by a third party on the basis of an agreement between that third party and the creditor, the consumer shall no longer be bound by the ancillary service contract if the consumer exercises the right of withdrawal from the credit agreement in accordance with this regulation.

(6) Regulations 7 and 8 of the Distance Selling (Retail Financial Services) Regulations shall not apply where the consumer has a right of withdrawal under sub-regulations (1), (4) and (5).

(7) This regulation shall be without prejudice to any national law establishing a period of time during which the performance of the contract may not begin.