Do I Have the Right to Cancel an Automatically Renewed Breakdown Cover Without Additional Fees in the UK?

Question from Murek7, Do I Have the Right to Cancel an Automatically Renewed Breakdown Cover Without Additional Fees in the UK?

Answer from AI:

In the UK, consumers have certain rights when it comes to cancelling contracts, especially those that have been automatically renewed. However, the specifics can depend on the terms and conditions of the contract, the type of service, and the timing of the cancellation.

Consumer Contracts Regulations

Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, you generally have a 14-day ‘cooling-off’ period for most contracts entered into online or over the phone. This means you can cancel the contract for any reason within this period and get your money back. However, this may not apply if the service has already started with your agreement.

Automatic Renewal Contracts

For automatic renewal contracts, the company should inform you that the contract is about to renew and give you the option to cancel. This is according to the guidance from the Competition and Markets Authority. If they didn’t do this, you might have more rights.

Additional Cancellation Fees

As for the additional cancellation fee, it depends on what was agreed in the contract. If the contract states that a fee will be charged for cancellations, then the company may have the right to impose this. However, the fee must be fair and clearly communicated to you.

It’s important to read the terms and conditions of your contract to understand your rights and obligations.

What to Do?

1. Check the terms and conditions of your contract.
2. Contact the company and explain your situation. They may be willing to waive the fee, especially if you weren’t clearly informed about the automatic renewal or the cancellation fee.
3. If you’re not satisfied with the company’s response, you can make a complaint to the company.
4. If the company doesn’t resolve your complaint, you can take it to the Financial Ombudsman Service.

Remember, this information is a general guide and may not apply to your specific situation. It’s always a good idea to consult with a legal professional for personalized advice.