Consumer credit act

[leela]

I am currently in the process of buying a house with a top up loan which is unsecured, the lender states that by law the have to give a 14 day cooling off period incase i wish to cancel. They have said they won't release the funds till the end of this period! i have never heard of them not release funds before. I have tried researching and it seems for a personal loan the cooling off period should only be 5 days?

can anyway tell me if what they are saying is correct?

Can i opt out of this cooling off period?

[Ethel]

Have you taken out any insurance with this loan? Sickness repayment or something like that?

That has an obligatory 14 day cooling off period.

Usually 7 days for a personal loan.

Did you sign the forms in their offices or at home?

[Ethel]

It seems as if your lender is correct:

Cooling Off Period
The law states that every lender must allow a cooling off period of at least 10 days during which a borrower can cancel their loan and repay the balance without a penalty charge.

And if the contract was not face to face, it is 14 days:

http://www.cml.org.uk/cml/policy/issues/121