Cancelling Lease within cooling off period.

[Billybuds]

Morning all,

My partner agreed a lease with SRK finance for a Mercedes A-Class just under 2 weeks ago.*

Unfortunately due to the current situation, she has had her work hours slashed (as have I) and it doesn’t seem prudent to add another financial commitment to our outgoings in the current situation.

We are just within our 14 day cooling off period (just) so she emailed to cancel the order and they are asking for a £500 + VAT cancellation fee as well as keeping the £200 admin fee we have already paid them.

This doesn’t seem in keeping with the spirit of the cooling period. Anyone with any suggestions?

Many thanks

[R0b]

Did she sign the documents in person or online?

What cooling off period are you referring to, the contract terms or legislation?

[Billybuds]

Hi Rob,

Contract was signed online, regarding the cooling off period, I am unsure. When we signed the agreement we were told delivery of the vehicle (it is in stock) would have to wait 14 days until the ‘cooling off’ period has passed.

Thanks

[R0b]

Legally, entering into a contract by distance i.e. online, telephone etc. give you an automatic 14 'cooling off' period under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. For services alone, the period is 14 days from the day after the contract was made but in cases of goods and services (a sales contract) it should be 14 days on the day after the goods come into possession.

Either way you've said you have cancelled within the 14 day period so you should be within your rights to cancel without penalty. I think the admin fee they could argue as not having to refund but they certainly should not be refusing your cancellation unless you pay an extra £500 + VAT.

Suggest you write back to them making a formal complaint, explaining that the above Regulations allow you to cancel goods and services without giving any explanation or additional charge. Ask them to explain on what legal basis do they have a right to charge £500 + VAT as a cancellation charge and if the answer isn't satisfactory, then you will consider taking further action which may include, taking the matter to the Financial Ombudsman, reporting them to the FCA's enforcement team for failing to comply with its obligations under the FCA rules or legal action (should you need to).
*

[Bane]

hello, did you do the above? No doubt there are others who are in your predicament or will be in the future. thanks,