If you are a trader who enters into contracts with customers in their own homes, where the value is over £35, it is important that you provide cancellation rights to your customers, otherwise it could mean they can legally withold payment to you.
You need to provide a written notice explaining their right to a seven day cancellation period and a copy of the cancellation notice itself.
This applies:
- Whether or not there is a contract in writing;
- Whether you were invited to visit by the customer or not;
- Whether or not the customer wants the work to start before the end of the seven day cancellation period. In this case, you can still undertake the work within the seven day “cooling off” period but the customer must request this in writing before you start.
The cancellation notice needs to be given before you start any work, and there is set wording that needs to be used in that notice which can be seen on the legislation.gov.uk website.
Failure to comply with these requirements means a customer can choose not to pay you, and you have no legal right to receive payment.
The law was created to protect consumers from high pressure sales practices, allowing them a cooling off period so that they could change their mind.
We want to help you avoid the kinds of non-payment issues that can arise and to help you get things right, so if you would like more advice on what you need to do, please do not hesitate to contact Trading Standards on 0345 045 5206.
The piece of law covering this is called the
Cancellation of Contracts Made in a Consumer’s Home or Place of Work etc Regulations 2008