Contract hire - 14 Day cooling period charges?

[axil23]

Booked a contract hire last week via an internet company. Had a change of mind and called up the admin department who advised that I was within the 14 day cooling off period since the car was not due till Sep. Today I got a email from the sales team that they want £360 cancellation charges plus they won't refund my £180 admin fee. 

 

I have been advised by a different broker that they can't charge me anything since I was within my 14 day cooling off period. Can anyone advise? 

Edited June 11, 2019 by axil23

[BazzaS]

Did you book as a consumer or as a business?

 

if as a business, what do the agreed T’s and C’s say?

[axil23]

It does state that. 

 

Quote

Any cancellation will only be acknowledged and acted upon in writing. It is your responsibility to ascertain that the
cancellation has been received. In the event of this order being cancelled by yourself for any reason other than
stated above or failing to take delivery / return documents within the specified time, you will be liable to pay a
cancellation fee of £300.00 + VAT. This fee is for the cancellation of the vehicle
only as no cancellation fee applies to the finance order (see below). By signing your order confirmation form you
authorise, in the event of a cancellation to take the full cancellation fee from the
card details provided at the point of order.

 

The reason why I am asking is I have seen people meantion 14 days cooling of period for contract hire which includes the agents charges. 

 

Quote

If you ordered it as an individual then you can rely on your “Distant Selling Rights” which means you have a 14 day cooling off period, so we would be surprised if you would need to pay any cancellation charges, I would mention Trading Standards if they are insistent in charging you.

 

Edited June 11, 2019 by axil23

[AndyOrch]

But are you a Business or a Consumer.....it affects the advice we give you.

[axil23]

Business. 

[AndyOrch]

The Consumer Credit Act doesn’t apply to an offer or supply of credit to limited companies, however, it does apply to contracts entered into by sole traders and partnerships.

 

https://www.devonsomersettradingstandards.gov.uk/business/consumer-rights/business-to-business-contracts/

[axil23]

2 minutes ago, Andyorch said:

https://www.devonsomersettradingstandards.gov.uk/business/consumer-rights/business-to-business-contracts/

 

Oh well. I thought that since they allow the 14 days cooling off period for the lease that should also apply to the admin fee. 

[AndyOrch]

A large part of the legislation relating to unfair terms either do not apply in a business-to-business contract or only applies at the discretion of the court. It is always important therefore to check your terms and conditions prior to signing up to a contract.

 

You are a limited company not sole trader or partnership. ?

[axil23]

Yes. Ltd company. 

[axil23]

I have asked the company to cancel my finance within the 14 days and they are refusing to do so until I pay the cancellation charges which I don't agree with as I was advised that I could cancel. 

 

They agree that I am allowed to cancel it as per the terms but won't do it till I pay their fee. I want to dispute this fee but don't want to end up with two finance agreements as I have bought car from other agent. 

 

Are they doing anything illegal by refusing to cancel a finance document that legally I am allowed to cancel within 14 days? 

Edited June 17, 2019 by axil23

[AndyOrch]

But the 14 day cooling off period does not apply to you because your a LTD Company.....even though the charge is unfair there is no way around it B2B

[axil23]

Lex Autolease have advised me that I do have the 14 day cooling off period. It's in their business contract t&c's. 

 

I would like to cancel the finance part of it before the period is over but they won't let me and Lex are saying that I can't do it direct as they don't have paperwork yet. 

 

 

[AndyOrch]

That may well be the case as part of their T&Cs...which also states you have to pay £300 +VAT cancellation fee.....but you dont have any legal right as your LTD Company and not a Consumer..you dont have protection of the Consumer Rights Act.

[axil23]

Ok. Thanks for your help. You have been great!