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.
Join our 
We bought a holiday on line at virgin holidays on booking it says we have 7 days which to cancel went to do so and they don’t acknowledge this so I’ve had to send then their own document but not heard anything is there a higher authority I can complain to
Hi I was pressurised last week Friday into paying £360 and signing an agreement for visa relocation to Australia by Global Migrate.
I then had a consultation on Monday. Realising the visa i will get will be temporary and I cannot meet the required documents requested. I emailed to inform that I will like to cancel and get a refund yesterday 14th Feb. I was told i cannot do that now and that I am liable for the remainder £1440.
I cannot physically afford this as I do not work regularly and I am currently very vulnerable and going thorough depression.
Hi I bought a sofa bed from SCS yesterday in store 12/3/2017. Paid using my debit card and cost £1000. Upon getting home and measuring the space needed the sofa bed will not fit where it needs to go. I have contacted SCS and they have informed me I have no cancellation rights. However, in their t&c’s it clearly states. ‘You will have no right to cancel the contract or to return a product once delivered, unless either the product does not conform to the contract or we ageee to the cancellation in writing’.
Where do I stand with this?
Thanks
Becky
Hi I picked a sofa 2 days ago in a shop but my sofa was not going to be made until I had the final payment paid but I decided to ask for my deposit back am I entitled to get it or a credit note ? As it’s only been two days and nothing has effectively been ordered yet
Hello I am looking for some advice. I bought a 2015 Jeep in September 2016 from Arnold Clark. I also bought 2 years servicing and MOT. Since i bought the car i have had nothing but trouble. The first thing was the battery was flat and the day after i bought it i couldn’t even drive it to work because of this. I lost a day of work as i had to take it to the garage for them to change the batter. All 4 tyres pressures were off considering i was informed that the car just had a service and was checked over prior to me taking it home. I have now decided to change my car and I contacted Arnold Clark regarding a refund for my 2 years servicing and MOT which hasn’t been used yet. They say that it is in the terms and conditions. I am certain that the sales chap said that i could get a refund if i needed to as the car i was trading in had a years servicing left which i managed to get a refund for and it is the same company. Pheonix Linwood in Paisley. Please can you advise. Thanks.
I booked a holiday through Thomson and it turns out that the hotel isn’t going to be ready in time. If the hotel they are offering isn’t satisfactory to our needs we can have a refund or we can change our holiday and pay extra if the holiday is dearer or vice versa. As the holiday had 2 free child places do they have to honour them and in effect knock them off the price of the said new holiday we would book via them?
Hi I have signed a agreement to say I have parched a camper van but we did not agree on a day or time to buy only putting £50 deposit on it, it is a week tomorrow I have rung the people to tell them I don’t want it and they are threatening me with court action will I get a cooling off period on this
do you have a ‘cooling down’ period when you book an apartment on booking.com when it says that you have to pay the full cost for cancellation?
I bought a bed late Thursday,. Paid by credit card. The delivery time is between 8-10 days. I have asked them to cancel order but told it’s too late and there is a no cancellation policy on show in store. We didn’t see this, or is there any mention of this on the receipt. I haven’t signed any paper work, can I ask for a refund.
I got a groupon photo shoot for two people and paid |£9.00 plus £40.00 deposit to Flawless. We got photo’s done on 29.04.2017. Very hard sales woman it ended with a contract for £880.00 but we did not get a copy of contract etc we had to pay another £20.00 as they said they had no change (should have only been £8.00). I think we have been scammed but I have no proof can we cancel direct debit and do we have a cooling off period? Your help is appreciated. Thank you
Does the 14 day ‘cooling off’ period apply to a washing machine?
I complained on the day I received it because it is not what I expected and is extremely inefficient.
I was constantly switched around to various people who did not help me and finally being told that I could not have a refund. Hotpoint are now just ignoring me.
Please advise asap.
Gillian Hartshorne
I bought furniture in NY state, I was informed there would be a wait as it was back ordered. I know the retailer still has access to the product but they are now trying to cancel the deal and refund me my money. I have waited almost two months already and do not want a refund but want my furniture for the negotiated rate. What are my rights?
Hello. 4 days ago i was contacted by Aerial Direct, who are an alternative supplier for o2. They said they can do my business phone cheaper than o2. I cancelled by business phone with o2 last thursday and took out the new contract with Aerial Direct (4 days ago). However i have since thought again and want to go back to o2. I tried cancelling the account with Aeriel Direct as i am STILL in the cooling off period (distance selling regs) but Aeriel Direct have said that because its a business phone – the cooling off period is only one day. The one day rule has never been highlighted to me.
Can you help with advising me whether this is correct? Or tell me what the regulatory period is as a cooling off period for a business phone contract.
Thanks
I should say – the T&C’s do say ‘no cooling off period for business users’ but i believe the ‘unfair contract act’ applies and the consumer act trumps this condition?
My son purchased a settee and chair from dhs it has not been delivered yet and now the same settee and chair has been reduced by £600.00 has he got any rights to contest this
Can I ask what the definition of a reasonable admin charge is? I have just tried to cancel a bike insurance policy (for which confirmation details for either product or payment were not received) and the charge is almost half the policy value – the cancellation was less than 24 hours later.
I was having a service done on my caravan but had to cancel due to unforseen circumstances I sent the company an email which they said they never received they are now wanting a call out fee can they do this.
I’ve just signed a contract with Eze group in Tenerife. I think they were timeshare company now selling a Money Savings card. The contract states no cooling off period. I signed after several hours of hard selling. I paid 10% which was £540. Am I legally bound to pay test? Thanks
I asked at my caravan site about selling my caravan the owner and his wife said they weren’t interested they had 3 to sell . I then sold the caravan to my friend for £9000 filled the form in and went to the office to hand it in he then said I’m buying it not them so I said I’m not selling you it I’m selling it to are friend no you not he replied I then said right I’ve changed my mind and put it in writing I’m not selling it we’re do I stand as it has on the form I can change my mind if I want he then told me he think what he’s going to desire in 5 days
we’ve ordered a kitchen from wickes paid in full before survey was done. its been an day since the order and we want to cancel. how troublesome will this be?
Hi. I had a guy come to measure for Venetian blinds today. He has a shop locally. I ordered them and left a deposit. I’ve since realised l don’t like them and he is very expensive. I tried calling the shop a couple of hours later but he is closed until the 28th. I left a message saying l wish to cancel. I know he called his supplier to make them. What are my rights in this situation? Thanks.