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Cancelling a distance credit agreement - Samsung Note 9

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  • Cancelling a distance credit agreement - Samsung Note 9

    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.
    Check out some useful guides below

    A guide to voluntary termination
    Seting aside a CCJ
    Completing an N180 Form (Courtesy of Jaguarsuk)

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    LEGAL DISCLAIMER
    Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Some of the content I post may include example wording, letters, or other similar responses but they are intended purely for informational and educational purposes. Using some or all of the content I post may fail to meet your needs that is specific to your situation. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice and you can do this through the Law Society's Find a Solicitor database, by contacting your local Citizen's Advice Bureau or legal advice centres such as LawWorks. You may also be able to seek legal advice from your local university who may run a free (but limited) legal advice clinic to members of the public.
    Tags: None

  • #2
    I have had a look around and can't find anything which would throw doubt on your interpretation.

    Comment


    • #3
      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.
      Check out some useful guides below

      A guide to voluntary termination
      Seting aside a CCJ
      Completing an N180 Form (Courtesy of Jaguarsuk)

      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
      LEGAL DISCLAIMER
      Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Some of the content I post may include example wording, letters, or other similar responses but they are intended purely for informational and educational purposes. Using some or all of the content I post may fail to meet your needs that is specific to your situation. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice and you can do this through the Law Society's Find a Solicitor database, by contacting your local Citizen's Advice Bureau or legal advice centres such as LawWorks. You may also be able to seek legal advice from your local university who may run a free (but limited) legal advice clinic to members of the public.

      Comment


      • #4
        All seems correct and I think sending Close Brothers the cancellation just covers your bases.
        COMPLETING AN N180 DIRECTIONS QUESTIONNAIRE (SMALL CLAIMS TRACK) GUIDE

        My posts here are based on my experience of a variety of life events. I have no formal legal training & if in doubt take professional legal advice or contact CAB. If you follow anything I write here you do so at your own risk & I accept no liability for any loss, costs or other outcomes.

        Private messages are disabled as help is only offered publicly. I do not come on here in the evening, at weekends or on public holidays.

        Comment

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