Cancelling a distance credit agreement - Samsung Note 9

[R0b]

Amethyst jaguarsuk des8 ostell

I think I am on pretty solid ground but would like some outside views before I decide to go ahead and cancel. So I've pre-ordered the Samsung Note 9 through their shop online and opted to take this out a fixed sum loan, interest free over 2 years through Close Brothers Retail Finance.

Now, I've see that Carphone Warehouse are offering a pretty decent deal with an extra £200 on top of any trade in value along with the wireless charger thrown in for good measure and I am really tempted since I'll save myself around £250 compared to my order with Samsung (I've tried to see if they will match but have informed me they are fixed and can't be changed).

As I made the pre-order along with the loan application at the same time online, this is obviously a distance selling contract subject to The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

Reg. 29 quite clearly says that I have the right to terminate at any time without penalty provided I do so within the cancellation period. As this is a purchase of goods, Reg. 30(3) applies and my cancellation period is up to 14 days after I receive the goods. Reg. 32(2) then goes on to explain that in order to cancel, I must inform the trader that I am cancelling this.

All pretty straight forward, yes?

So here is the part I am wanting to double check and clarify we are all singing from the same hymn sheet. Reg. 38 explains the effects of cancelling a contract under Reg. 29 in that any ancillary contracts are also automatically terminated. Reg. 38(3) then says the following:

(3) An ancillary contract, in relation to a distance or off-premises contract (the main contract), means a contract by which the consumer acquires goods or services related to the main contract, where those goods or services are provided

(a) by the trader, or

(b) by a third party on the basis of an arrangement between the third party and the trader.

and then Reg. 38(4) also says this:

(4) Regulation 6(1)(b) (exclusion of financial services contracts) does not limit the contracts that are ancillary contracts for the purposes of this regulation.

For clarity, Reg. 6(1)(b) says that:

(1) These Regulations do not apply to a contract, to the extent that it is:
...
(b) for services of a banking, credit, insurance, personal pension, investment or payment nature;

So, as far as I interpret the legislation and in order to do this correctly, I must inform Samsung that I wish to cancel the order and in doing so, the fixed sum loan agreement is also cancelled as it is an ancillary contract within the meaning of Reg. 38(3)(b). Also, as I read Reg. 30(4), it confirms that the limitations of Reg. 6(1)(b) does not affect the automatic cancellation of the fixed sum loan agreement which is ancillary to the order made with Samsung.

Now if I do cancel the agreement, who informs Close Brothers that it is cancelled under Reg. 29? I presume that it should be Samsung, but for comfort I think I would rather send Close Brothers that confirmation too.

I've never done a cancellation like this before and quite honestly, it is the first time I have looked into this in any real depth, so any opinions whether in agreement or not would be appreciated.

[des8]

I have had a look around and can't find anything which would throw doubt on your interpretation.

[R0b]

Thanks Des, I thought as much but wanted to make sure I wasn't jumping the gun and then wind myself up with a default through no fault of my own if Close Brothers dispute this.

[jaguarsuk]

All seems correct and I think sending Close Brothers the cancellation just covers your bases.