Cancelling contract with College

[bazzzz]

I have a friend who signed a credit agreement regulated by the Consumer Credit Act 1974 for £4,000. It increases to £8, 000 if it is not paid off within 12 months. The agreement was signed at home. The salesman represented a training college. The correct paperwork was completed.

There appears to be two contracts:

1) The first with the bank supplying the credit;

2) The second with the training college supplying the course.

The contract with the college says he may cancel the course within 14 days of signing the agreement. This clause, as far as I can see, is not covered by the Consumer Credit Act because it does not relate to the finance. It’s separate and distinct from the credit agreement.

He can no longer start or complete the course. He cancelled one week after the expiration of the 14 day period. The course has not started and the College, therefore, have not supplied any services or incurred any costs other than administrative costs. He wants the College to refund the money to the bank.

The College refuses because he failed to cancel within the 14 days.

The contract with the college says nothing about what happens when students want to cancel before the course starts or when they cancel during the course. It only mentions the 14 day cancellation period and their policy of not refunding fees once a student has enrolled unless there are special circumstances which physically prevent a student carrying on with the course.

I cannot see how my friend is bound to pay £8,000 for a course he will not even start.

The only remedy will be found in attacking the contract he has with the College.

I would be grateful for your views