24 Hour Loans glossary of financial terms

Cancellation Period

A cancellation period, often also known as a 'cooling off' period, is the period of time in which you can withdraw from buying a financial product or service once you have signed a contract for it. So, for example, if you take out a loan and then decide that you no longer want it, you have the right to cancel it immediately during your designated cancellation period.

You will be given a cancellation notice whenever you sign a contract to buy certain types of financial products. This notice will outline the terms of your cancellation period. Cancellation periods will vary from product to product ? they generally range from 10-14 days ? and they are not applied to all financial products that you might buy. They basically give you the option of cancelling your contract if you change your mind ? so, if you take out a loan with a 10 day cancellation period, you have 10 days from receipt of the cancellation notice to notify your lender that you do not wish to take out the loan anymore.