A period allowed by law to enable a consumer to cancel an agreement without incurring any penalty. In credit, the cooling off period is 5 days, though some lenders give more.
A cooling off period is defined as the period of time you're allowed, after signing an agreement, to cancel it without incurring a financial penalty. Cooling off periods may vary from 5 days to 30 days, depending on the type of product agreement reached and how the agreement was reached. The best known protection for consumers is the Consumer Credit Act 1974. Here, regulated credit agreements may allow you to cancel the agreement should you change your mind.
If you are entitled to cancel an agreement, you must be sent a cancellation notice within the cooling off period explaining that you have the right to cancel the agreement. A cancellation form will be enclosed with the notice and you can use this (or write a letter) to cancel the agreement. Should you decide to cancel, the cancellation must be sent to the lender within five days of receiving the notice, preferably by recorded delivery. A telephone call will not normally be sufficient.
It's worth noting is that if the trader has failed to provide you with the required information about your right to cancel, then the cooling-off period will be longer. You may require legal advice on this issue. Always check the terms and conditions of the contract.
Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.