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Status: You are viewing the version of the handbook as on 2005-06-30.

ELM 1.4A 1Distance contracts: cancellation

Right to cancel

ELM 1.4A.1R

A retail customer has a right to cancel a distance contract the making or performance of which by the firm constitutes, or is part of, issuing e-money unless:

  1. (1)

    the performance of the distance contract has been fully completed by both parties at the customer's express request before the customer exercises his right to cancel; or

  2. (2)

    the firm has an initial service agreement with the customer and the contract is in relation to a successive operation or separate operation of the same nature under that agreement (see COB 1.11.3 R

Cancellation period

ELM 1.4A.2R

The right to cancel referred to in ELM 1.4A.1 R starts on the later of:

  1. (1)

    the day of the conclusion of the contract; and

  2. (2)

    the day on which the retail customer receives the contractual terms and conditions and other information required by ELM 6.8 (Information); and lasts for 14 calendar days.

Failure to give information on cancellation rights

ELM 1.4A.3R

If a firm does not give a retail customer notice of his cancellation rights in accordance with ELM 6.8.2A R and COB 6.4.25R, the contract remains cancellable and the retail customer can cancel the agreement at any time.

Exercising the right to cancel

ELM 1.4A.4R

A retail customer may, without giving any reason, cancel the contract by serving notice upon the firm, before expiry of the relevant cancellation period, in accordance with the instructions for exercising that right provided to the customer in accordance with ELM 6.8.2A R and COB 6.4.25R.

ELM 1.4A.5R

The following rules also apply as if issuing e-money were accepting deposits: COB 6.7.47R (Record keeping); COB 6.7.48R (Cancellation notices served out of time) and COB 6.7.51R to COB 6.7.53R (Effects of cancellation).