Cancelling a service contract

On this page:

• What must I do to cancel a service?
• Refunds for cancelled services
• Can I keep goods that came with a cancelled service?
• 'No refund' signs are unlawful
• 'No responsibility' policies are unlawful

What must I do to cancel a service?

If there is a major problem with a service and you choose to cancel the contract, you must tell the service provider.

A contract for services is cancelled when you tell the provider that you intend to cancel it - verbally, in writing or, if this is not possible, by any other means.

You cannot immediately cancel a service if the problem is minor or can be fixed. For more information, see Can I get a refund or cancel the service?

Refunds for cancelled services

If you are entitled to cancel a contract for a service, you may also have a right to a refund.

You may need to negotiate a reasonable amount. What is reasonable will depend on a range of factors, such whether some or all of the services provided were unsatisfactory, or provided at all.

This may mean asking for some of your money back if you have already paid.

A hairdresser has cut and coloured a consumer's hair. The cut is good but the colour has washed out after a day. The consumer must pay for the cut but not for the colour.

Can I keep goods that came with a cancelled service?

When you cancel a contract for services that includes goods, you must return the goods to the supplier.

You are entitled to a refund of any money or other type of payment that you have made for the goods.

If returning the goods involves significant cost, the supplier must collect the goods at their own expense.

'No refund signs are unlawful

A service provider must not tell a you that a consumer guarantee:

• does not exist
• is excluded, or
• may not have a particular effect.

This means 'no refund' and similar signs are unlawful, because they imply that you cannot get a refund under any circumstances – even when there is a major problem with the service.

Signs that state 'No refunds will be given if you have simply changed your mind' are acceptable.

'No responsibility' policies are unlawful

Service providers cannot make claims that mislead consumers about their rights—for example by implying that you have no rights if services are not carried out with due care and skill.

Claims which may be misleading include:

• 'no responsibility for loss or damage'
• 'goods left for repair at your own risk'
• 'all care but no responsibility'