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What is a “cooling off period”

This is an amount of time given to a consumer, so as to reflect and consider the timeshare contract they have entered into with a seller. In the case of timeshare, the consumer has 14 days after they have been provided with all the relevant contractual documents, to legally rescind the contract they entered into. If the consumer does rescind the contract within the “cooling off period” then the contract is void.

 

Why is this “cooling off period” granted by authorities as a right.

This is because the government/authorities believe (in respect to timeshare) that consumers are at a disadvantage (when entering timeshare contracts). This belief is due to a vast number of complaints and the large number of past litigations on timeshare issues.

 

Why do consumers need a “cooling off” period

The “cooling off period” is afforded to consumers so they can elect “a change of mind” as to entering into the contract they just signed. A “cooling off period” allows a consumer time to consult family, friends, solicitors and advisors about the implications, liabilities and benefits. when entering into contracts consideration is require as the contract may have far reaching consequences both now and in the future.

 

Can a consumer extend a “cooling off period”

The period is fixed by statute and is designed to balance the seller and buyer.

 

When does the “cooling off period” not apply

  • you’re a business buyer
  • ·you bid for something in a public auction.
  • you buy from a private individual and not a business
  • ·you agree for a service to be fully performed straight away. This depends on a number of factors and could mean that you lose your right to cancel.

 

Which Act grants a “cooling off period”

Consumer Credit Act 1974

 

How to cancel using the Act

An event a notice of your cancellation rights must be included within the copy of the credit agreement and must be sent by post or email within seven days.

You then have five clear days (not counting the date of receipt) in which to cancel.

The effect of cancellation under Section 67 of the Consumer Credit Act is that the agreement and any linked transaction is treated as if they had never been entered into. Consequently the loan company must repay all sums which you have paid and you must return any goods you’ve received.

 

 

 

 

For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk