Cooling off and Cancellations
Contracts are, by definition, legally binding, therefore it’s difficult to cancel without financial penalty unless you can prove breach of contract. In many situations however, such as buying goods from shops, you are able to cancel the contract and get your money back. But unless the goods are faulty, this is not an automatic right, and you must refer to the individual shop or supplier’s returns policy.
Under certain circumstances, you are given the right to cancel over a specific period of time. This is referred to as your cooling off period and the duration of this period depends on what you bought and the manner in which you bought it. The following are situations in which the cooling off period applies
Buying online from shops or suppliers
The purchase of goods and services over the internet, by phone or by mail order generally is subject to the Distance Selling Regulations. One of the most important implications of these regulations is a cooling off period of 7 days during which you have the right to cancel. You must provide notice of cancellation in writing and it must be posted to, left at, faxed or emailed to the business address of the supplier, and you must ensure this is done no later than 7 working days after receipt of goods. Contracts for financial products sold by distance means are subject to different rules, see below for more on this.
Something else worth mentioning is that the supplier must have sent you written confirmation of your order no later than the time of delivery of the product or performance of the service. If they did not, then your 7 day cooling off period will not begin until they do, and may be extended by a further 3 months.
If you have commissioned a service under a distance selling contract and the work begins before the end of the 7 days cancellation period, then you must give up your right to cancel, but this must be clearly communicated and with your express agreement.
Does the right to cancel apply for all goods bought by mail order?
There are obvious exceptions and you will not have the right to cancel with the purchase of the following goods:
- Goods made to a personalised specification
- Perishable goods, such as foodstuffs and flowers
- Audio/video recordings or software where the seal has been broken
- Newspapers, magazines or other reading material (not books)
- Gaming, betting, lotteries
Buying from a doorstep seller
If you have bought something costing more than £35.00 from a trader as a result of a visit to your home or place of work (whether or not the visit was requested by you), you will be protected by the Doorstep selling Regulations – or to give it its proper title: The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008. These regulations give you a cooling off period of 7 calendar days during which time you have the right to cancel and get a full refund. Just as with the Distance Selling Regulations, you must have been provided with a notice of your cancellation rights, otherwise the agreement may be legally unenforceable
Buying away from the trader’s normal place of business.
You may also invoke your 7 day cancellation rights for items over £35.00 where business is taking place away from the trader’s HQ or shop. This may include any of the following:
- Your place of work
- A trade fair
- A one-day fair (such as a wedding fair) or a marketing presentation (such as overseas property)
It is also the case even when contracts are concluded at a later date, back at the trader’s shop or office – the fact that you have made your offer away from here is the important thing.
Timeshare agreements
There have been numerous problems to do with consumers who have signed contracts while under pressure from sales reps in the UK or as a result of a ‘free’ holiday provided by the company. For this reason, the Timeshare Act 1992 gives you the benefit of a cooling off period of 14 days if contracts are signed in the UK. If you sign abroad you will be subject to local laws, although most European member states have a cooling off period of 10 days. Check before you sign, although the company must provide you with the same notification of your rights as doorstep sellers.
Credit Agreements
You will only benefit from a cooling off period if the credit agreement was made in one of the following ways:
- For agreements signed away from the creditor’s normal business premises – i.e. at your home, place of work or at an exhibition stand
- For agreements made at a distance (online, by phone or by post)
For agreements which fall under (1), you will have a cooling off period of 5 days, which begins from the time you receive the second copy of the agreement (containing the cancellation form). For contracts which fall under (2) and (3), you benefit from a 14 day cooling off period. Unlike the cooling off period for goods bought under the Distance Selling Regulations (DSRs), the creditor may make a reasonable charge for any service (such as insurance cover) which was operating during this time.
There are specific guidelines on how you should cancel the contract, which must be notified to you by the creditor before or immediately after the contract is made. If the creditor does not make this information available to you, then your cooling off period will not begin until this happens.
Financial products and services
Financial products including banking, credit, insurance, personal pensions and investments, sold by distance means are subject to a 14 day cooling off period (this is 30 days in the case of life insurance and personal pensions). This includes renewals for insurance where the agreement has been sent by post. This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face. You must be sure to follow correct procedure for cancellation (see below). The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had. If you have any related credit agreements, these will also be cancelled.
Extended warranties
These are effectively insurance policies and have a 45 day cancellation period with the right to a full refund if you have not made a claim in this time. Any cancellation after this time will entitle you to a pro-rata refund. See our guide to extended warranties for more in depth information.
The correct procedure
With any contract or sale which is concluded away from the trader’s normal business premise, you must be sure you have been presented with clear written notice of your right to cancel, at or before the time the contract is made. If you have not, the contract is legally unenforceable. This notice, which cannot be in the form of small print, or otherwise disguised, must also provide a cancellation form and advise you on how and to whom a notice of cancellation is to be made. You can use the cancellation form provided or a simple written notice, as long as it is clear of your intentions. And as long as you have posted your notice of cancellation before the end of the cancellation period, it doesn’t matter when it is actually received. For this reason, it is always advisable to send it recorded delivery.
Refunds
The supplier must reimburse you within 30 days of cancellation, without charge, unless you have been informed that you will be liable for the cost of returning the goods. If you have any related credit agreements, these will also be cancelled.
Related posts:
We brought a sofa and chair from Harveys back in May 08. We signed 3 or 4 financial credit agreements as Harveys kept putting them through incorrectly. We did not have confirmation from Harveys after we brougth the sofa and chair that the agreesments put hrough incorrectly had been cancelled.
We got a letter from credit company after we recieved the goods saying an agreement had been cancelled as instructed by Harveys and no further payments where necessary. We realised that this was for a table and chairs brought the previous year not the credit agreement put through incorrectly. We have had another letter from Harveys now wanting the money for the table and chairs, Do I have to pay them if I have had written confirmation that this was cancelled all be it by mistake??
Hi – Ive bought three return journeys on Eurostar between Friday 14th to December 1st 2008, but as they are not “flexible” tickets I have been told by them I cannot have a refund or a credit note. Can this be argued and a refund or credit note received, please?
Dick – I’m afraid cooling off rights do not apply to fixed-date travel tickets, and Eurostar are under no legal obligation to offer you anything in return. This was probably the reason those tickets were cheaper and you should have been advised of their policy before you confirmed sale. Their response seems a little harsh however and most carriers will at least let you rebook with the payment of an additional fee.
Gemma, there isn’t provision for this in law, but all I can say is that a verbal agreement is just as legally binding as a written contract. The only way it would be legally unenforceable is if the retailer were in breach of some requirement under Consumer Credit or Distance Selling legislation. I can’t see you getting away with this unfortunately!
hi my son bought a car last weekend he paid £4550 cash for it then found out he could not get it insured the car is still at the garage where does he stand noe can he ask for his money back.
My colleague bought a motorbike yesterday and today realises he has bought something far too powerful for him as he only passed his test a few weeks ago. The shop has agreed to cancel the finance but won’t give him all his deposit back, only half of it. They have offered him vouchers to spend in their shop for the other half, but he’s angry that they’ve taking him for a ride (excuse the pun) and wants it all back in cash. Where does he stand ?
Peter
I have bought a package holiday over the phone and paid by visa – do i have a cooling off period?
C Smith, the only case you would have is if the car is of poor quality and unfit for purpose, and this is the reason he cannot get it insured. It’s hard to answer this without knowing the reason.
Pete, retailers and suppliers only have to give you back 100% of the money paid if it was a distance selling contract. If it was agreed face to face in a shop, he is trying to go back on a legally binding agreement, so the shop are in a strong position. Check the Ts and Cs in the contract to find out whether there was any warning this would happen.
I made a deposit for a car finance deal with a dealer (at the seller’s office) I found on AutoTrader. The finance was not approved by the finance company, and when I asked for a refund which they promised, they are now refusing, that I should go and look for a personal loan!!!
Please advice me on what to do.
Pat, I’m afraid not, package holidays (which include travel and accommodation within a specified time) are only partially covered by the distance selling regs, there is no cooling off period. You should look to the package travel regs to see how you are covered.
See: http://whatconsumer.co.uk/the-package-holiday-regulations
I went to ask about a deal for a car at dealers franchise, found a car i was interested in, was asked to sign a form by salesman before being passed to finance person to sort out money. – was given a weekly price verbally and i asked him to get the best deal several times – finance company was closed at this time but he said it was not a problem – the form i signed had no financial information on it but blank boxes – i fear i may have been duped because when i was leaving he said i could pick the car up the next day – how can this be when he doesnt even know if i’ll pass finance – on calculating weekly payments at home – the typical apr figure was way out – it seems i would be paying almost double the cost of the car – can i get out of it within 24 hrs – i didnt realise the form i signed may have been a credit agreement as it had no information on it!
Robbie, it is unlikely that the form you signed was a credit sale agreement. There are strict rules which require the presentation of key financial information, including:
* The loan amount
* The charge for credit
* The total amount payable
* The monthly instalments
* The Annual Percentage Rate (APR)
The figures cannot be added in afterwards, you must have full knowledge of them before you sign. If not, you can claim that it was mis-sold and therefore legally unenforceable. See the following page for further info on credit sale agreements. http://whatconsumer.co.uk/credit-agreements-explained/
My partner signed a contract with an estate agents yesterday in our home. We realise that their fees are way higher than all other local agents. Does the cooling off period apply?
I signed a Hire Purchase Agreement for a car in a main dealership, but cancelled two days later. In the paperwork headed “Hire Purchase Agreement” there was a clause that gave me the right to cancel. The dealer is refusing to return what he calls my deposit. The deposit he refers to is actually an “initial hire payment” taken on behalf of the finance company (same manufacturer, but trading as the Finance arm). Am I entitled to my money back.
Dawn, yes, refer to the doorstep selling regs: http://whatconsumer.co.uk/doorstep-selling/
David, your statutory cooling off only applies where the paperwork was signed away from the trader’s normal premises, or where it was entered into as a distance contract. If you signed the agreement while you were in the dealership, you do not have a statutory cooling off period. The right to cancel you refer to is nothing more than a goodwill gesture of the finance company and as such subject to their own ts and Cs. Therefore they have the right to hang on to your initial payment.
Hi,
I bought some photos from a photographers for £466 on Sat 29th Nov and after careful consideration decided that I couldn’t afford this.
I signed a form on trade premises which didn’t appear to be a credit agreement but stated what I was ordering and made clear that I paid £100 via Mastercard and had 6 months worth of payments to start paying from 19th December 2008.
After phoning the company on Friday 5th December I explained that I wished to cancel the order due to having insufficient funds to pay for it. The company informed me that on the bit if paper that I signed it states that there are “no refunds and no cooling off period” which ihe read to me over the phone. I didn’t leave the premises with any copy of my signed paperwork.
Additionally the company stated that because they are making the photos in time for Xmas they have done all of the photos and the order cannot be cancelled as the frame is being hand-made as well.
I am unsure of my rights as I want to cancel the order and I’m quite prepared to lose my £100 as I cannot afford the £366 owing.
The company have offered me a deferred payment until January so I can start my payments then but I will not receive any of my photos until then.
Can I just not accept my order and not pay anymore or do I have to accept the goods if they are in good condition?
Do I have to pay and will they enforce legal action if I wasn’t to pay?
It seems to me that the company will not let me cancel my payments/order and are expecting the full funds.
Where do I stand legally?
We paid for a carpet in full by credit card in the store do we have a 7 day cooling off period please.
Michael, I’m afraid there is no cooling off period and you have formed a legally binding agreement to pay the full amount. Added to this is the fact that the order has been made to order to your specific requirements (am I right?). You can only appeal to their goodwill, but must understand the nature of an agreement from their point of view, and costs already incurred.
Isobel, no, I’m afraid not.
Thank you very much for your clarification! You do a wonderful job!
hi
have just got 12 months contract with bt for phone line and all inclusive calls anytime wanted to cancel the calls and pay phone line only but they said there is no cooling off period as the service has been actived thank you.
I got a new contract phone from Jag on Monday, on Monday night I decided that the phone and the contract were not for me. I emailed my friend who manages one of the local Jag stores and asked if I could cancel the whole thing, he said yes as long as I hadn’t made any calls. No where in the very short contract does it say that I’m not allowed to use the phone if I decide to cancel the contract.
Is there a way that the cooling of period applies so I can use it to get them cancel it?
Eric, you only have a 7 day cooling off if contracts were concluded by distance (i.e over the internet, or the phone). If the service was activated before the end of the 7 days cancellation period, you have given up your right to cancel, but it should have been clearly communicated and with your express agreement.
Nick, mobile phone operators seem to have different policies as regards opening and using the product and your continued right to cancel the contract. All I can say is from a legal point of view, you give up your right to the 7 day cooling off (if it applies in you case, does it?) if the service is activated before the end of the 7 days, but this must be clearly communicated to you. Additionally, you must be given the opportunity to examine the goods, and how can you be expected to do this without opening and using the goods? Check the paperwork again because the distance selling regs require that specific info must be provided to you about your rights. If they are not, the contract may be legally unenforceable and you could successfully challenge it. See:
whatconsumer.co.uk/mail-order-distance-selling-know-the-facts/
also see the post: ‘your right to cancel’ which follows on from this
Michael – your thanks is appreciated. We very rarely get any!
I bought some laminate flooring from a well known High Street seller and was informed if I brought any of the packs back unopened within 28 days, with proof of purchase, I would be reimbursed.
My wife attempted to return surplus unopened packs and was informed this would only be done to a maximum amount of 20% of the order and that 3 or more packs is the minimum purchase.
Where do I stand as this was not mentioned at the time of purchase ?
Paul, If you bought the laminate from a shop you won’t have cooling off rights – did you? Although shops are under no legal obligation to refund anything after you’ve bought (unless it’s distance selling), they must still display their returns policy at the point of sale, clearly and legibly.
Hi, I subscribed for AA breakdown cover two days ago. I just came to know that my car comes with warranty that includes breakdown cover. I called AA to cancel. But, even though I have 28 days cooling off period, they are going to deduct £14 towards admin charges. Is this acceptable? I was told that it is mentioned on page 20 of their T&C.
i enquired about a plumbing course and was contacted by phone to arrnge for a rep to visit me at my home to discuss the course however after 3 hrs he had pursuaded me to sign up for a £3000+ career development loan [with a company i think is tied with the training provider,adress is 2 doors away]and part with a £100 deposit at no point was a cancellation form issued or explained to me hoever on looking at the contract it states i have a 7 day cooling off period but not for students on credit terms it also states i will be deducted a £45 admin fee he also left some cd roms and books in a case for me
i have writen to both companies explaining my wishes to cancel and requested a full refund
am i within my rights to cancel and recieve full refund please
If a deposit is paid for a motor vehicle but no contract signed (at the traders’ premises). Is this eligible for refund if purchaser cannot continue with purchase ? Many thanks.
I went to buy an engagement ring from a shop where an old school friend works on the 8th of this month. When I arrived she no longer worked there but the assistant said that a discount would still apply and I put a 50% deposit down for a ring to be made up. Since then I’ve had time to look around and I’ve realised that I’m really not getting a very good deal. Will I be entitled to my deposit back?
Steve, even though you have nothing in writing a legally binding verbal contract still exists. Therefore if one of the parties withdraws, it will still constitute breach of contract. The existence of a contract is also reinforced by the paying of a deposit, although what rights the other party has (damages etc) in the event of a breach will depend on what was discussed and agreed.
Jeeves, With insurance products the cooling off period does allow them to make a discretionary charge, although it should reflect true costs and be reasonable.
Joe, nobody can be excluded from the right to cancel, this is an unfair term. Under the doorstep selling regs you have 7 calendar days to cancel and get a full refund. No fees can be levied in respect of cancellation under the doorstep selling regs. For more info see: http://whatconsumer.co.uk/doorstep-selling/
Neil, I’m afraid the cooling period does not apply in your case.
So, does this mean there is no protection from over zealous salesmen in shops? i was persuaded/bullied into a phone contract at the weekend and it is not what i wanted at all. i take it from this site that i have no cooling off period?
Clare, there is no cooling off if you bought the item in a shop, but if you were bullied into it, you can benefit from the protection of different regs. See:
http://whatconsumer.co.uk/misleading-commercial-practices-unfair-trading-regulations-2008/
My AA breakdown cover has recently come up for renewal. Unbeknownst to me, AA have automatically renewed it at a signifcantly higher premium. When I queried this, I was told documentation had been sent and my 14 day cooling off period had expired.
I’ve not received any documentation and AA are refusing to accept any responisibilty for this and give me a refund, despite the fact their policy states the 14 day cooling off period is from “receipt of your membership documents”.
How does the 14 day cooling off period work for non-reciept of documents? Where do I stand on cancelling this memebership?
Thanks in advance.
Angela, as you have pointed out, renewals are subject to cooling off just like first time policies. Secondly, you are correct, cooling off starts from receipt of documentation. Ask for this complaint to be escalated and for proof that the docs were issued to you and when.
Catriona, thanks for the advice. The seller now threatens to charge interest on the unsold vehicle. He claims to be able to deduct this from the deposit and then persue any more through the courts until the vehicle is sold. Is this correct ? I can’t believe that he is allowed to keep moneies for no goods.
Steve, it sounds like he is just being threatening. As I said unless provisions were outlined and agreed in the event that one of the parties was in breach, and unless he can prove significant consequences as a result of the failed sale (i.e. loss of income etc), then he won’t be able to claim anything else.
I signed a contract with Lancaster Printers for a advertisement in The Police federation Diary. There was no Cancellation Period and I was not left with any copy of the contract, but I did sign the box and after reading it it does clearly state that I do not have a right to cancel. Is that legal?.
The company providing the services are in England and my business and the was contract was signed in Scotland, will this have any bearing?.
I have informed them that due to financial conditions I wish to cancel and they have got a bit nasty.
Comments Please
James Kilday
Hi James, I am afraid this legislation does not apply to business-to-business transactions, so there is no cooling off unless it is stated in the contract.
Hi
I have just cancelled a contract with broadband supplier Plusnet within 7 days. They have a clause in the contract that prevents me from avoiding there £60 fee if I use the broadband service. The reason for my wishing to cancel was that when I did use it did not function as I wished and therefore was unsuitable for me.
This seems to be an unfair clause and not in the spirit of the distance selling rules.
regards to you all
Clifford, You have the right to cancel distance selling contracts within 7 days, although if you begin using the service before the end of this period, you waive your rights to the cooling off. However, this info must be clearly presented to you before you agree. If it is not, it cannot be enforced. You are correct however, the spirit of the distance selling rules is to give you the opportunity of trying it out before acceptance. For this reason mobile phone companies say that if your use is less than 3 consecutive days, you will not be charged. For broadband providers, there may be an initial connection procedure which may incur costs on their part – the question is whether £60 is a fair reflection of this.
Thanks for your quick reply Catriona. Perhaps there should be a campaign to bring broadband providers into line with mobile phone providers. It really is a nonsense that you cannot cancel a poor broadband experience just because you have used it briefly. It seems obvious that the reason for the cancellation is likely to be that you have not enjoyed the experience. As I understand the distance selling contracts even allow you to cancel even without reason.
Are we in fact in a situation worse than the old Sale of Goods Act?
Once again thanks for your helpful comments.
My inlaws have recently enterered into an agreement (about a week ago) to purchase a stair lift, they have handed over some £500.00 as a deposit and now want to cancel, what rights do they have?
I took out a contract with Three Mobile, purchased from Phones 4U in December for a mobile broadband “dongle”. I purchased an 18month contract for 1mb broadband at £10pcm. I plugged it it and it gave me nowhere near 1mb. I spoke to Three’s technical support in India at vast expense on two occaisions and they couldn’t fix the problem. I took the dongle back to Phones 4U on the 5th day after sighning the contract – two days after their cooling off period. They wouldn’t accept it, so I sent it with a letter to their head office, only to receive the dongle back wo days later with no explanation. I phoned them a few weeks later and they told me to speak to Three, which I did (again) and they refused to take notice of the fact that I live in central London, where one would expect mobile signals to be good-excellent and their product does not do what it advertised. I have refused to pay any bills and am now receiving threats from a debt collector. what can I do??
On Sunday 25th January, I ordered a replacement Kitchen from Wickes and having been told that my order could be cancelled ‘at any time without penalty’ I see from the 0% credit finance agreement (Black Horse) that the direct debit mandate indicates ‘non-cancelable’. Are you familiar with the ‘rules’ on this? my position on this is that I don’t want to cancel the order – I just want to pay in full using a credit card, to give me security if the supplier doesn’t (for any reason) deliver and install the goods. is there anything I can do to cancel the credit agreement?
Derek, I’m afraid there are no cooling off rights unless they bought it over the phone or via the internet. If there are no contractual clauses which allow for cancellation, they are legally committed to paying the full amount.
Tom, the cooling off period offered to you by Phones4U is to enable you to try the product out so if problems like this occur, you can let them know without being penalised. Having said this only 3 days does seem a bit short. You cannot simply stop making payments however, you are in breach of contract and Phones4U have the right to recover the outstanding sums. You have to go through the proper channels of dispute resolution. Ask Phones4U for their complaints procedure and request the problem be escalated to a dispute. If you find that this is unsatisfactory, you can go to Ofcom. See:
http://www.ofcom.org.uk/consumeradvice/mobile/customer_services/
David, I’m not sure I understand, if you wanted to pay in full on credit card why did you sign up for a credit agreement? Unless you have entered into the agreement on a distance contract basis, there are no automatic cooling off rights with either sale of goods or credit agreements. However, if the contract states you can cancel your contract with the supplier without penalty, then the assumption if that any associated credit agreements will also be cancelled. Don’t forget that you can still invoke S.75 (equal liability) if you only paid the deposit by credit card. See the section on credit agreements:
http://whatconsumer.co.uk/credit-agreements-explained/
I though I have lost my P60 form, so I went online and bought one for £35, from http://www.payslipsp60.co.uk It looked ever so easy, just put the information through and they will send it within a day. So I have done just that, and then on the same day going again through my documents I have found my P60 the original, so that was within 2 hours of the last purchase. So I rushed to the phone to phone the company and to cancell, on what the lady on the phone told me that it is to late as it was already been sent. After some complaining they have offered me £15 refund by the end of the week, on what I have agreed. I paid on 22/10/2008, have tried emailing them, but there was no response. I have tried to scare them with legal proceedings. I dont really know what to do. I need some help.
Hi,
On saturday the 24th of January 2009, I ordered a sofa form DFS on credit but I told them I was not sure of the colour, so they gave me 7 days to come back and choose that colour. On Monday I phoned them to cancel the contract as I will be studying again and would not be able to afford it. They told me that it is legally binding, even though I have not chosen the colour. And they did not tell me that I would not be able to not cancel the contract.What are my rights please?
I recently ordered a bed from Bensons. I have paid £120 deposit on my debit card and signed a credit agreement with black horse to pay the balance by interest free credit over 2 years. At the time there were technical problems in the shop and I did not sign a contract, terms or conditions or a direct debit mandate to pay the balance. I rang the store a few days later requesting a refund of my deposit, but they refused to do this saying it was not company policy and I could not cancel my order. Where do I stand on this. Im not even sure the bed has been ordered as i have no delivery date, havent received any paperwork in the post, and havent even signed a direct debit mandate. Can I really not cancel my order??
Any help/advice would be gratefully received. It has now been a week since I “ordered” the bed.
Zhanna, You have no cooling off rights in this case because the item in question was made to your particular specification
Esther, I’m afraid DFS are right – the sofa is made to order and therefore you don’t have a cooling off period. Having said this, they are probably being a bit harsh – if you haven’t chosen the colour, then they obviously haven’t sent the order through yet. Appeal to their good will, although they may want to charge you a cancellation fee.
Helen, there is no cooling off period when you buy in a shop and the contract is legally binding from the moment contracts are concluded. However, even though nothing was signed, contracts were concluded verbally – which is just as legally biding (although harder to prove). Having said this, Bensons may find it hard to pursue you for the full amount if they have nothing in writing from you…?
I purchased a TV from Electrosaver (Bradford) 20 Dec 08 and was promised a delivery 5-10 days. Even allowing for Christmas on 15 Jan 09 I cancalled the order asking for a full refund. I was told 5 working days for this but have received nothing so far. Stupidly I paid by Debit card but what can I now do about this? Having done some research about the company there are many stories like mine and I’m determined that they will not get away with this.
Ian, legally, the trader has 30 days to refund you. So you won’t be able to take any action until this time period has come to an end anyway. If the trader has become insolvent, you can request to be added to the list of creditors and may get some of your money back. If you paid with Visa Debit you can take advantage of chargeback.
Signed a contract with Anglian Home Improvements for a Conservatory in Sept 2007, was told it was a standard contract but later found out salesman had lied about what we were getting once we started having problems with them and had someone check the contract we had signed. Problems ranged from delay in starting the job (nearly 5 months later) to no one supervising the builder in the 2 weeks he was here building the base. Loads of letters to and fro and loads of bullying and threats from Anglia so we eventually told them to come and build the conservatory but with the condition that it was a Brown on White which is what we had discussed with salesman and thought we were getting. (Contract sataes white) They then requested an extra £1500.00 for the brown one and we declined. Then they said would build the one we thought we were getting but now want 50% upfront because the finance side of ageement expired because of time limit which is 12 months. We do not want to continue with these people because they messed us around, lied, threatened and are not as proffessional as they say they are. They now taking us to court for breach of contract and say that we never gave them a date to come and install conservatory. We can’t afford solicitors so have to defend ourselves in court. Have you any advise as to how we can now have this agreement annulled – We have absolutely no confidence in the Company to honour the agreement. We are now in the process of going to county court over this – what defence could be used in this matter.
Many thanks
I booked a holiday last tuesday with First Choice (through a travel agents), after finding out that the bank that we bank with is in trouble on the weekend we decided to cancel the holiday. We contacted the travel agents yesterday and they have told us that we will loose our deposit but surely we should have a 7 day cooling off period??
is this right?
I have taken out a contract with a distance learning organisation and now wish to cancel. There is a cancellation policy in the contract but when I call I am simply told that I have no right to cancel and should contact Citizens Advice if I wish to take the matter further. They tell me that the cancellation policy contained within the contract only applies for ill health etc. I have received only a small proportion of her course material and obviously don’t wish to receive any more.
Any advice?
Matt, the person you spoke to may have been misinformed. Ask to speak to someone more senior. Put the matter in writing and send recorded delivery as soon as possible so your request to cancel can be registered. Course materials are treated as goods, and as long as the contract was formed online or over the phone you have at least 7 days in which to cancel and claim a full refund. The only way in which this would be different is if some element of teaching or tutoring was involved and thus it became a service.
Hannah, cooling off only applies where you have made the booking online or over the phone.
Hi I got into a contract with npower through a third party and I beleive i have been mis-sold, i was told they were the cheapest in my area and that the cost of business usage, would not be coming down, both i have found to be untrue, i have since spoken to npower who have obtained a copy of the conversation, but it is only part of the conversation, where rates and terms and conditions were agreed, but nothing on the rest of the conversation, there is also a reference, as if he has spoken to me before, which he did but none of the above was ever discussed. can you please advise
Ros, if it only County Court, then you don’t need solicitors to represent you, but you would be advised to get legal advice regards what evidence you should prepare. In the matter of the five months to start the work, if no timescale is stated in the contract, the assuption is that it will take place within reasonable time. It did not, so this is one of your statutory rights breached. Please refer to:
http://whatconsumer.co.uk/what-about-contracts-for-services/
For more on your statutory rights as regards services. And:
http://whatconsumer.co.uk/making-a-small-claim/
For information about the small claims court.
Linda, Npower have recently been fined £1.8m due to mis-selling – so you are not alone, and complaints are taken very seriously. You should give Npower reasonable opportunity to resolve your complaint, if they do not, you can register a complaint via Consumer Focus (used to be Energy Watch)
I recently agreed to buy a car on the dealer’s premises but changed my mind the next day and cancelled in person. Have I got the right to cancel the agreement in this case?
Wonder if anyone can help with this. I recently paid a month in advance for childcare at a day nursery. Having spent an afternoon at the nursery settling my child in, I do not want my child to attend. The application was made on line and I paid for a full month in advance by credit card. Would i be protected by the cooling off period? I did this 5 days ago? Their terms & conditions require a months notice for cancellations.
Thanks in advance
Sue, I’m afraid not. The agreement is legally binding, unless the dealer is prepared to let you out of it.
Debbie, where you have paid for a service under distance selling and you start using the service before the end of the 7 days, you lose your cooling off rights. However, you must be informed of this, if you were not, the agreement may be legally unenforceable. See:
http://whatconsumer.co.uk/mail-order-your-right-to-cancel/
For further info on this.
Hi, I took out a car insurance policy through Prestige (a broker) on 17th Jan,I was sent a letter on 12th Feb stating the policy will have to be cancelled.
When I contacted Prestige I was told I would incur cancellation charges if I left them, as I was cancelling after the 14 day period. I attempted to make the distinction that it was they who were cancelling (invalidating) my policy and not me cancelling it; with no luck I was left with no choice but to take out another policy through them, so as to avoid incurring any charges.
Now I have my new policy and I’m within my 14 days cooling off period,I would like to leave (as I have found a better quote elsewhere). However, before I can leave Prestige are demanding I pay 40% (£470) (based on their short-period cancellation scale) of the premium on my first policy on top of days on cover which I know I’m obliged to pay on the second policy.
Can they do that, especially as their t&Cs make no reference to what happens in situations where they cancel the contract?
Rital, where the supplier withdraw from the contract they cannot make any undue charges on you, other than for the service you have incurred – in this case one month’s insurance cover. Remember they are in breach of contract not you, so if anything should be compensating you, but definitely not imposing any penalty on you! The 14 day cooling off applies to any new insurance cover, where organised at a distance, and any requirement for you to pay a fee to invoke this right is an unfair term and a breach of your statutory right. Challenge this fee, and threaten the financial ombudsmen if necessary.
On 28/2/2009 I bought a mattress from ‘Paul Simon’ (bed store).
They had a 20% discount offer which they said ended on 1/3/2009 so I felt hurried into a purchase, though the offer was still running on 3/3/2009.
On 3/3/2009 ‘Paul Simon’ refused to cancel the order. I have not taken delivery of it yet and wandered whether I could still cancel the order. I paid by credit card.
Thanks.
John, You cannot cancel a contract made in store, regardless of how you paid. However the company has broken the law by claiming an offer ended on a specific day when it was extended and hence putting you under undue pressure. You would need to contact the authorities regarding this, but it might work as a bargaining chip?
See:
http://whatconsumer.co.uk/misleading-commercial-practices-unfair-trading-regulations-2008/
My son came to our house to witness His signiture on a contract for £35000 for gymnasium equipment. 18 months later due to the cedit crunch the business as folded .My wife and i recieved a demand for the money and they are taking us to court .We recieved no copy of contract or our rights to cancel form the only time we heard from this firm was to demand money and threaten bankruptcy. My wife is 65 and disabled .I am 58 and been unemployed for 3 yrs .We have had nothing to do with any business. but we own our own house and ther is a lot of equity in the property .We feel we have conned.
Malcolm, you have a 7 day cooling off period where the contracts are concluded away from the traders’ premises. If you have not been given the required information in this respect, the claim against you may be unenforceable. You can confirm this with a contract law specialist. Also ask the trader to provide you with a copy of the signed agreement – give them 7 days to produce it. There is no way your house is at risk as a result of this.
Malcolm, did you just sign as a witness or did your signature guarantee the loan?
Thank you for your reply. We were told our signature was only as a witness. The finance company asked us to to sign under his signature and his wife’s. Now 15 months later they say we are business partners. We can prove we had nothing to do with any business. So somebody has altered them.
Malcolm, the issue is not whether you have any involvement with the business, it’s whether you signed the agreement as a guarantor. If this was the case, your names and addresses should have been printed on the form and you should have been under no doubt that this was what you were doing when you signed.
Hi,
What is a ‘reasonable’ cancellation charge during the cooling-off period when buying insurance? Swinton claims it would charge a £50 cancellation charge even during the first 14 days, presumably on top of their £15 service charge. Is this common practice?
Thanks,
Anna
Anna, the law states that the amount charged must be proportionate to the extent of the service provided (including the service of arranging the cover) in comparison with the full coverage of the contract, and that it must not be regarded as a ‘penalty’. If you were not informed of this charge prior to taking out the policy it is not enforceable. I would say £50 is excessive and should be challenged. I should also point out that all of the above is only the case if you took out the policy by distance means.
I am a technical officer for a small business and assist with the design of disabled bathroom. Although I notify them of a 7 day cooling off period before works commence and they sign both this and the minor building works agreement. Is there anything I should consider in this respect?
Hi,
My mum recently purchased a car however she feels she was maybe pressured into it and having not driven it off the showroom yet wants to return it. Does she have a 14 day return policy on this or is she likely to be stuck with it now? Thanks
Simon
Paul, As long as you clearly advise that your clients waive their cooling off rights if the work begins within 7 days, you have fulfilled your obligations under distance selling. If you ask them to sign the form in agreement, then you have covered yourself adequately. If contracts are formed at the client’s home as a result of a call you have made (whether invited or cold call), the doorstep selling regs apply which are a little stricter on this and require a special format to be followed. See our section on doorstep selling for more.
On holiday in Thailand a couple of weeks ago, my boyfriend and I got embroiled in Holiday Club opportunity – having been invited to what we were told would be a 2 hour meeting which turned into 9 hours, under pressure we signed a contract for membership and paid out a £1500 deposit. On return to the UK, after proper review/consideration, we decided to cancel the contract and emailed the company to notify them of this and requested reimbursement of our deposit. We would welcome any advice you can give regarding our cooling off rights and getting out of the contract – bearing in mind the contract has absolutely no mention of a cooling off period, was signed in Thailand but the “address” of company ownership is British Virgin Islands…..the company are refusing to return the deposit. Any advice gratefully received. Thanks.
Simon, I’m afraid there is no cooling off period in this instance. However if you feel undue pressure was used, you could consider the new Unfair Trading Regs. See: http://whatconsumer.co.uk/misleading-commercial-practices-unfair-trading-regulations-2008/
Lisa, the rights mentioned above as regards cancellation only apply for companies registered in Europe – I doubt very much Commonwealth countries are included, but if they are and you were not shown your cooling off rights, the agreement may be unenforceable.
I entered into an agreement for childcare services (starting on 22 Feb 2010) on 1 December 2009. The agreement contains a provision that I need to give 3 months notice or fees in lieu (which I have to admit I didn’t see). I informed the provider on 20 January that I need to cancel the place as I will be leaving the country. The childcare provider is now threatening to sue me for the full amount of fees in lieu of notice(totally £3300) even though no services were ever provided. The contract states that the full fees will be charged even if no services are provided. I believe that the 3 month notice period (or fees in lieu) constitute an unfair term under the Unfair terms in consumer contracts regulations and/or that it constitutes a penalty. The provider claims that the 3 month notice period is market standard and represent loss of income to her. However I have found 2 childcare centres within 10 mins walking distance who only have a 1 month’s notice cancellation period. The childcare provider is refusing to prove that 3 months notice is a reasonable pre-estimate of her loss. Do you think 3 months is likely to be an unfair term for the purposes of the UTCCR 1994?
Hi Max,
I am afraid that three-months is considered fair but it is right at the limit. I was caught out by a similar clause in a contract for Karate lessons for one of the kids. Sorry I know this is not what you want to hear.
Tony
I ordered BT vision, phone and broadband about a month ago. The modem and vision box arrived at different dates. Before the vision box arrived I rung BT up to cancel my order. They woman I spoke to told me to wait till I get the box, watch it and that I had 10 days to decide if I like it before deciding whether to cancel. When I rung up after only having the box for 5 days BT told me that the 10 days was only to send any faulty equipment back and I couldnt cancel now because everything had gone live. If I was told all this in the first place I would never have accepted the box, therefore everything wouldnt have gone live and I would have sent that and the modem back to them straight away. They have also not mentioned anything about a cooling off period to me which I thought by law they had to provide? Could you please tell me what I can do about this?
Thanks, Robert.
We ordered items over the internet to Ideal World which the screen told us ‘due to error the order was not processed’ and as a result we re-sent the order, unfortunately when the confirmation e-mail came through it was found that the items had been ordered twice. We immediately got in contact with Ideal World by telephone and e-mail, but they said that the order could not be cancelled. They eventually cancelled 4 of the 5 items later that evening. The fifth item was recieved and immediately sent back over a week ago but no refund has yet been forthcoming and we have been advised that it will still take another 7-14 days even despite the delay since the original error being bought to their attention. Where do we stand legally?
They have 28 days to repay this from a legal perspective, although this sounds like forever nowadays.
we stupidly bought two holidays during a presentation by one of thoses companies that’is not’ a time share company. The contract we stupidly signed after being grossly misrepresented various holidays says that it is non-cancelable. The adress we met them at is not the adress that companies house have as their registered adress.Does that mean that we could say we could invoke our 7 day cancellation rights for items over £35.00 where business is taking place away from the trader’s HQ or shop? Although they say their office is the place where we met them, it did not seem to be a permanent office (plastic temporary banners with their name on it outside, thier logo stuck on top of other door signs etc). There is also on sign on the internet of it being a registered office although they claim it to be on the contract? Others have complained that they returned to the adress only to find that they were not there, although they clearly use it occaisionally to do promotional, one day only offers from. hope this is clear enough for a response!
So they are moving their office with them wherever they go – interesting. I think it might be worth giving Consumer Direct a call about this 08454 04 05 06
thanks and yes concumers direct are very helpful. there are so many problems with this contract that we stupidly signed whilst desperate to get away from the presentation I am prepared to hang on in all the way to small claims court, I just know that I will be pressurised by these people for a very long time! A lesson for others….read re read and read contracts again and never sign one under pressure.
It is easier said than done at that kind of event where they give you wine, use aggressive tactics and have over-excited plants in the audience rushing to sign-up… the odds are not stacked in your favour.
Hello
I recently ordered a washer dryer through a mail order catalogue. It duly arrived and I plumbed it in and used it twice. Not only is it horrendously noisy and takes hours to do a cycle, everything that came out of it smells “toasted”.(I did two loads in it). I have contacted the catalogue and told them I wish to return it under the 7 days cooling off period. I do not want it replaced, it’s far too noisy and I need a machine I can use at night as I have a child with autism who can’t bear the sound of a washing machine. The customer services helpline say it cannot be returned as I have used it twice, so I wrote to them (within the 7 days) and requested they pick it up. They have just rung and said the same. Where do I stand? It’s now sitting here wrapped up awaiting collection and I am washing machine-less.
Many thanks
Jane
Hi Jane,
I am afraid they are right. The seven days is for inspection in the same way that you can inspect items in a shop. This includes turning things on but wouldn’t include using it twice. Sorry
Tony
Hi Just sgined up for a new car which had faulits which has part of the verbal contract would be repaired the dealer has failed to fix these points do I have the write to cancel
Steven
Hi,
Last October I put a deposit on a new car, 500 pounds. The salesman told me that the car will be no later than 12 weeks for delivery. I accepted this no problem. In January, 1 week before my car was due, the dealer phoned me up and told me there was a delay of another 4 MONTHS! and will not arrive until April. I am considering cancelling the order. When I checked my contract I then noticed that he had not put a date in the expected delivery date box. He did verbally tell me on many occassions. Could you tell me where I stand legally please. Am I entitled to my deposit back.
Thanks very much.
Paddy
Hi I’ve bought a return ticket over the phone with an airline company for May 2010. When I’ve checked the airline’s website the same journey costs £45 cheaper if I buy it via the internet. Can this be agrued and a refund receive. Or does the cooling off right apply.
Many thanks
Carolina
There is no cooling off for flight bookings and prices change all the time. Sometimes you win sometimes you lose.
Hi,
I bought a new mobile phone and signed up to a 24 month contract through phone4u in store and the day after purchase realised the phone was not for me. I returned to the store and requested to return the phone and cancel the contract at which time I was told phone4u do not operate a 14 day cooling off period for which they have a notice displayed in store however I was not told this at the time of purchase. The contract was signed 24th Feb.
Thanks
I bought a car 3 months ago i have found out it has a problem with the fuel tank and fuel gauge, i made the independant dealer aware of the problem about 3 weeks after buying it and have proof from the RAC of the problem dated a week after buying it, the dealer said to get it fixed i’d need to take it back to north wales for him to fix it when i live in leeds making it a big inconvieience to take it there. Where do i stand three months down the line in getting the dealer to pay for the repairs? and do i have to take it all the way to Wales.
Thanks,
Dave
I joined a gym 14 days ago and now i want to cancel, i have not used the gym at all. Also they have signed me up for 12 months when i only agreed to 6 months further to this i felt coerced into 6 months when i went in asking only about a 3 month membership. I have signed the 12 month contract without looking at it properly, i can see now it’s for 12 months rather than 6months. I want to cancel but where do i stand?
Thank you,
Aimee
Aimee, there are no automatic cooling off periods for gym contracts. There are, however, a lot of complaints about unfair trading and unfair terms. I would report them to your local Trading Standards office.
I agreed to do a debt consolidation over the phone based upon being told that there would only be a $49.95 monthly service fee until paid. Then I was contacted by someone else in the company and asked to go over some electronic documents and they electronically signed them for me. On the first page was the agreed $49.95 charge. I did not notice on page 2 that they were also charging $2040 dollar. I was not aware of this until I received a statement from the bank that was doing the auto withdrawl that 95% of that was going to the debt consolidation company. I was sent a welcome package, with no notice of right to cancel and they have not performed any service for me at this point and I have not received anything from them after a welcome package.
I agreed to this service 12/29 and the first withdrawl was made 1/12 and another 2/12 and I received the statement dated 2/15/10.
Do I have a small claims action against them for the return of my money they collected?