Last Updated on 20/06/2024 by Samantha Lewis
Consumer Credit Act 1974 – Consumers who enter into a credit agreement have a right to a 5-day cooling off period from the date the consumer receives a copy of the executed agreement regardless of whether the visit was pre-arranged.
Where cancellation rights apply or are offered, the customer must be informed under what circumstances they may cancel and this should be plainly visible in the paperwork given to the customer, for example, next to the signature box, and be in large bold type. Where a customer has indicated they have poor eyesight or are confused by paperwork, the salesperson should go through the paperwork with them.
Per the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 a cancellation form must be provided setting out:
If a deposit will not be refundable or will be only part-refundable, this must be made clear when the customer places the order and the reasons for this must be described to them, in writing. If the customer cancels the contract properly full repayment should occur (unless, for example, the goods have been damaged after delivery), and in any circumstance, money withheld should not amount to more than the net costs or net loss of profit incurred by the Code member.
If a member chooses to offer a cancellation period longer than required by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (14 days) or to offer cancellation to customer other than consumers this should be clearly detailed by the member on their website and in their paperwork.