You are looking to cancel subscriptions and services to save money. Once you’ve signed up for financial products and services, you’ve entered into a contract with the other party, the financial institution. As a consumer, however, you have the right to withdraw from your consumer credit contract if it is no longer serving you. For example, you can also take your name and opt out of mailing lists from such entities as the Domain Listings scam
Cancellation of most financial products and services can be through writing, email, fax, or even verbally if your financial products and services provider prefers it that way. This guide will give you a basic understanding of financial products and services and how to cancel them.
What are Financial Products and Services?
In a nutshell, financial products and services are products that financial Institutions provide to consumers and businesses. Consumers must engage in economic activities to access financial products and services.
The difference between financial products and services is that; Financial products are tangible or physical products that consumers buy and sell in financial markets, while financial services are services that the financial sector provides and it entails a lot of businesses.
Through financial products and services, consumers can make financial investments like shares. Additionally, consumers can save or borrow money through loans, bonds, and credit cards.
The financial products and services sector comprises:
- Mortgages
- Payment services
- Actual goods provision
- Tax planning
- Accounting.
Investing in financial products and services involves a contractual agreement between you and your service provider. You can cancel the contract within 14 days of the purchase date.
Here’s a few financial products you may wish to cancel.
Why Would You Cancel Financial Products and Services?
A question that most consumers will ask is, “can I cancel financial products and services?” If you want to terminate financial products and services, understand the terms first.
There are two main reasons why you may want to cancel your finance products and services;
They aren’t actually Making You Money
Since the financial market is volatile, financial products and services are subjected to many risks. Mutual fund expenses and charges can quickly get out of hand. In most financial institutions, price fluctuations are unforeseen. Such unlooked-for situations lead to severe losses.
Consumers should be cautious because Financial institutions mainly offer more than they can afford to lose. Therefore, they will always demand their money back when it’s appropriate for them but not for your business. You end up making more losses than profits.
They Aren’t Actually Saving You Money
Another primary reason you may want to cancel your financial products and services is that you need to save money. Some factors like tax inefficiency and brokerage commissions kill your profit margin hence taking a toll on your savings.
When you invest in financial products and services, you’re on the lower side of the receiving end. Therefore, you do not have a choice regarding losses due to poor trade execution.
Difficulty to Cancel Financial Products and Services
Although you may encounter difficulties canceling financial products and services, the process is straightforward.
You can withdraw from the contract 14 days after the date you entered the agreement. Alternatively, you can cancel the deal before the financial institution signs the agreement. Either way, you must inform the institution that you wish to cancel the finance products and services.
Canceling Financial Products and Services Depends on the Products but Should Be Easy
As a consumer, you are within your rights to cancel financial products and services. The 14-day grace period you obtain to cancel the products is called a cooling-off period. Different considerations may apply depending on your service providers.
Occasions under which you may be denied the right to cancel financial products and services are:
- If you have fully benefited within the 14 days.
- Suppose the value of the products and services is affected by market fluctuations. In this case, the situation is beyond your provider’s control.
- Some financial institutions do not offer the right to cancel. However, it would be best if you were informed prior.
Note that you can withdraw from any financial products and services through writing, email, fax, or verbally.