Consumer Credit Act

The Consumer Credit Act says you can cancel a credit agreement if:

• You signed the agreement face to face after discussing it with the creditor or his agent
• You signed the agreement away from the business premises of the creditor or anyone negotiating on his behalf. So, for example, an agreement signed at your home would be cancellable.

You don't have long to cancel - the cooling off period starts when you sign the agreement and ends five days after you receive the second notification of cancellation rights. The seller usually sends this as part of a second copy of the agreement.

Let the credit company know as soon as you decide to cancel the agreement with the seller. You must cancel in writing.

If you buy something on credit with a credit card (but not a hire-purchase agreement) and the cash price of the goods is between £100 and £30,000 the credit company shares liability with the person who supplied the goods or services. If you have bought it using a hire-purchase agreement the credit company will be liable anyway instead of the supplier.

You have five days to cancel starting with the day after which you receive the second copy of your cancellation rights and of the credit agreement, regardless of when the company receives your written notice of cancellation - so it's important that you get proof of postage.

If you bought the goods online or over the phone, you are also protected by the Distance Selling Regulations.