Personal Contract Hire Distance Selling Regulations

lj1974

New Member
Feb 2, 2013
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Hi

I placed an order for a new car with an online contract hire broker at the end of December and for a number of reasons I am no longer in a position to continue with the contract. I have looked into the rules around distance selling and I would like some advice on whether the correct process has been followed by the broker and whether it is then possible for me to exit the contract.

I was not provided any written advice on how i may cancel the order, the actual order form contains a section which states

'By signing this form you are entering into a Contract (for the supply of services and goods). The 'company name' will act on your behalf to source the vehicle(s) as described in the "Contract Details" section above. You will not have the right (under the distance selling regulations) to cancel the contract once we have begun to source the vehicle(s).'

It does not say when they will begin to source the vehicle and whether that will be inside of the 7 days cooling off period for DSR - however i did recieve an email from the company the day they recieved my signed order form saying that they had placed the order for my car with the dealer.

Is by signing this order form enough for them to take that as explicit permission to start providing the service early in DSR terms, it seems to just say that DSR wont apply after they begin to source the vehicle (provide the service) - whereas DSR says that they should state whether they intend to provide the service before the 7 days DSR is over?

The order also states that 'Finance documents can only be produced a maximum of 2 weeks prior to delivery' however I was sent these to sign and have received the copy back from the finance company about four weeks ago (returned with the order form) and the car is not expected to arrive for another four weeks - there was no information on how to cancel the finance agreement (no cancelation form or note re cooling off period), the agreement states that its regulated under CCA 1974. I was wondering whether the 2 weeks is to allow for the goods to be provided inside of the 14 day cooling off period and therefore overide the option to cancel? Whereas they have been provided very early with no chance that the goods will be provided within 14 days, or even within 30.

Finally, the order also states (as does their website) that a cancelation fee is payable in the event of the contract being cancelled - this is £600, but it doesnt say how or when i can cancel. I have also paid (by cheque) an administration fee of £90 - this was included when i returned the order form in December.

Do you think I can cancel this under either DSR or CCA due to the fact that no cancelation option/paperwork was provided for either the order or finance (hire) agreement?

I havent made any contact with the broker or finance company at this stage as i wanted to be clearer as to my options.

Thanks

LJ