A cooling off period allows you to cancel a contract without being penalized, the period usually lasts 14 days of entering the contract. This means by contacting the company directly within 14 days of taking out a product you are able to cancel it – on the basis that you return any benefit you have receieved from the contract. In the case of loans this would mean returning the entire loan value to the lender, if you can’t do this, you can’t cancel your contract.
How to “Cool Off”
There are multiple ways to successfully cool off within the allotted time period. The most effective way would be to write them a letter. Make two copies, keep one yourself and send the other to the lender via recorded delivery. This way you have a record of what was sent, when it was sent, and when it was receieved.
It’s worth noting that as long as you SEND the letter within your cooling off period you are still eligible to cancel your contract – it does not matter when the letter is recieved.
When You Can’t “Cool Off”
You will not get 14 days to cancel if you arrange the contract in the business’ shop or premises. So for example, taking a loan out in a branch does not allow any cooling off period, the same with a phone contract.
You also can not cool off on vehicle rentals, courier services, hotels, cinema tickets, theatre tickets, transport tickets – if you are in doubt it is worth asking if there is a cooling off period while you are using the service.« Back to Glossary Index