Don't Be a Victim - Customers'Right to Cancel

By: checkatrade Click author's name for more of his/her articles

Since the start of October 2008 new regulations have come into force concerning the rights of a consumer to change his or her mind and back out of a contract.
Turning a blind eye to the new regulations could invoke a fine over £1,000. This penalty can be handed out personally to any directors who ignore their company’s inability to apply the new rules.
Spelled out in the Cancellation of Contracts Made in a Consumer’s Home or Workplace etc. Regulations 2008, the new rules mean that consumers now have seven days to cancel a contract, providing that:

The contract is worth more than £35
The consumer entered into the contract away from your business premises

As long as a contract is over £35 and made somewhere other than your business premises, customers can back out in the first seven days. They do not have to give any reason at all.
This provision is being called the customer’s right to cool off.
Remember, this applies only to contracts made with consumers. They are customers to whom you provide services or sell goods for non-business reasons. These regulations do not apply to any contracts made between one business and another.
What does this mean for my business?
If you make contracts with consumers in this way, then you will need to be aware of their new rights and adjust your paperwork to reflect this. Unlike the Sale of Goods Act, which states that their must be something wrong with goods for them to be returned, these new rules mean that consumers can pull out without having to give a reason. They can cancel the contract without any liability – providing they do so within seven days. This applies regardless of whether your visit to the customer is unsolicited or a pre-arranged appointment.
To include the Regulations in your paperwork, give your customers written notice of their right to cancel when the contracts are made. To make it obvious to your customers:
Spell out their right clearly and obviously
Include the date, your company name and contact details
Tell them how to cancel
Include a cancellation form and an address to send it to
Specify that the seven day period begins at the date of this contract

The customer cancellation form need say no more than: ‘To (insert your company name), I/we give notice that I/we wish to cancel my/our contract. Signed…’
You may want to word the notice in the following way:
Should you wish to cancel this contract, you must do so in writing within seven calendar days from the date of this contract, sending, delivering or emailing your cancellation to the person named below. A cancellation form is included for your convenience or you may write your own cancellation.
The customer’s right to cancel prevents them from being unduly pressured into receiving services or goods. Being clear on it as a business is not hard to do, and it prevents you from suffering a large fine for not complying with new regulations.

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