Cancelling goods or services
Published 2 March 2016
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This publication is available at https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services
Are you a consumer who has:
- agreed to buy goods or services, but changed your mind or are unable to go ahead with the contract?
- been asked to pay a cancellation charge to the business, but want to challenge the amount?
- lost your deposit or advance payments, and want to get them back from the business?
The business may be asking for more money than it is entitled to. Just because it’s in the contract doesn’t mean it’s always legally binding. Businesses cannot rely on unfair terms. Check your consumer rights.
Consumer law may help you
Don’t just accept the business can keep your deposit and advance payments or ask you to pay a cancellation charge if you cancel the contract.
The business can only do this if the contract term is fair.
A cancellation charge is not fair just because it’s in the contract you signed – it needs to be reasonable.
Sometimes you’re entitled to a full or partial refund – but you can’t always expect all of your money back if you change your mind.
Businesses can keep your deposit or advance payments, or ask you to pay a cancellation charge, only in certain circumstances
If you cancel the contract, the business is generally only entitled to keep or receive an amount sufficient to cover their actual losses that directly result from your cancellation (eg costs already incurred or loss of profit).
Businesses must take reasonable steps to reduce their losses (eg by re-selling the goods or services).
Non-refundable deposits should only be a small percentage of the total price.
Cancellation charges must be a genuine estimate of the business’ direct loss.
Contact the business
If you have concerns, firstly ask the business to explain how they calculated the amount they are keeping or charging you for cancelling the contract.
It might also help to familiarise yourself with our guide for businesses.
For information or advice
Contact the Citizens Advice consumer service (03454 04 05 06) for advice on what you can do.
Find your nearest Citizens Advice in England and Wales or Scotland.
In Northern Ireland, contact Consumerline on 0300 123 626.
These materials are not a substitute for legal advice, and should not be relied on as such.
More information on unfair terms can be found on the CMA’s webpages.