What is 14 day cooling-off period?

Asked by: Maxie Lowe  |  Last update: September 15, 2025
Score: 4.5/5 (43 votes)

In consumer rights legislation and practice, a cooling-off period is a period of time following a purchase when the purchaser may choose to cancel a purchase, and return goods which have been supplied, for any reason, and obtain a full refund.

How does the 14-day cooling-off period work?

Use your cooling-off period

You need to tell the seller you don't want the item within 14 days of receiving it. Once you've told the seller, you've got another 14 days to actually send the item back. You can use our template letter to let the seller know you're cancelling. Keep a copy so you've got proof you sent it.

What is 14-day cooling-off period insurance?

By law, you have a minimum 14-day cooling-off period during which you can cancel the policy for any reason. If you've bought life insurance, the cooling-off period is 30 days. The cooling-off period starts from when the policy begins or when you receive your policy documents, whichever is later.

What is 14-day cooling-off period credit card?

You have the right to cancel a credit agreement if it's covered by the Consumer Credit Act 1974. You're allowed to cancel within 14 days - this is often called a 'cooling off' period. If it's longer than 14 days since you signed the credit agreement, find out how to pay off a credit agreement early.

What is considered a cooling-off period?

Cooling-off Rule is a rule that allows you to cancel a contract within a few days (usually three days) after signing it. As explained by the Federal Trade Commission (FTC), the federal cooling-off rules gives the consumer three days to cancel certain sales for a full refund.

Cooling-off period: What you need to know

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What is an example of a cooling-off period?

Cooling-off period

For example, if you exchange contracts at 10am on Tuesday, the cooling off period will end at 5pm on Tuesday the following week. During this period, you may get out of the contract as long as you give written notice.

How long do you have to change your mind after signing a contract?

A federal law allows consumers to cancel contracts made with a door-to-door salesperson or anywhere other than the seller's normal place of business within three days of signing. The three-day period is called a "cooling off" period.

Does the cooling-off period affect your credit score?

Finally, if you cancel during the 14 day cooling-off period, nothing more happens. The credit check will still be visible on your credit report, but no other drop in your credit score should occur. However, you are now responsible for the debt, which needs to be repaid.

What happens after cooling-off period?

After the cooling-off period, you will enter into the settlement period, which is a standard of 42 days. The settlement period includes paying the property purchase price, signing and exchanging all legal documents, transferring the title into your name, and visiting the Lands Titles Office to complete the process.

How much will it cost in fees to transfer a $1000 balance to this card?

Balance transfer fee. This fee will typically be 3% to 5% of the amount transferred, which translates to $30 to $50 per $1,000 transferred. The lower the fee, the better, but even with a fee on the high end, your interest savings might easily make up for the cost.

Can I refuse to pay a cancellation fee?

Been asked to pay a cancellation charge? Did you know? A business can only keep the payments you've made in advance or ask you to pay a cancellation charge if it's fair to do so. A charge is not fair just because it's included in the contract you signed.

What does cooling off mean in insurance?

In simple terms, cooling-off period in insurance is a predetermined time period during which a person who is still in the recovery phase cannot buy health insurance. This cooling-off period is set by the insurance provider for different illnesses, and it can range from a few days to a few months.

Can my insurance refuse to cancel my policy?

Insurance companies cannot cancel a policy that has been in force for more than 60 days except when: You fail to pay the premium. You have committed fraud or made serious misrepresentations on your application.

What is a 14 day cooling-off period insurance?

As a financial product, car insurance policies are legally required to come with a 'cooling-off period', which gives you the right to cancel no-questions-asked during the first 14 days. This begins when you receive your paperwork or when the cover starts (whichever is later).

What is prohibited during the cooling-off period?

A ""Cooling Off" period is the time during which an employee is disqualified (recused) from participation in all official matters involving an entity because of a particular situation, for example, a prior employer.

What is 14 day cooling-off period bank account?

In most cases, the cooling off period is a minimum of 14 days from when you received your purchase or signed the contract. Loans, credit cards, car finance and insurance policies are some of the financial products that offer a cooling off period.

What is the purpose of a cooling-off period?

During a cooling off period, a buyer can withdraw from a property contract of sale without any legal repercussions even after they've signed it. Cooling off periods are only available for property sales by private treaty and can vary between states and territories.

What is the law of cooling-off period?

If you want to cancel a contract

If you want to cancel a service you've arranged online, over the phone or by mail-order, you get a 14-day cooling-off period - for example, if you've booked airport parking, hired a cleaner or gardener or asked a solicitor to sell your house or a plumber to service your boiler.

How long should a cooling-off period last?

You have a right to cancel within 14 days when a product is not bought in a physical shop. This is also known as a 'withdrawal' or 'cooling off' period. This means you can cancel the contract up to 14 days from when the contract was agreed and get a full refund. You do not have to give you a reason for cancelling.

How long does it take to clear debt after paid?

However, once you pay off the debt, it will show as paid when your credit report is updated—typically within 30 days of you making the payment. Paid collection accounts typically have less negative impact on your credit score than unpaid ones.

Is it bad to close a credit card with zero balance?

Your credit utilization ratio goes up

By closing a credit card account with zero balance, you're removing all of that card's available balance from the ratio, in turn, increasing your utilization percentage. The higher your balance-to-limit ratio, the more it can hurt your credit.

What is a good credit score?

There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.

Can I cancel a contract within 14 days?

What rights do consumers have to cancel? A consumer who has purchased your goods via an online platform has the right to cancel the contract and claim a refund without giving any reason or justification and without incurring any liability (unless exceptions apply) within 14 calendar days of receiving the goods.

What states have a cooling-off period?

State-by-State Variations in Cooling-Off Periods
  • California: 3 days for contracts signed at a location other than the seller's place of business.
  • New York: 3 days for contracts signed at a location other than the seller's place of business.
  • Ohio: 5 days to cancel a business opportunity agreement.

Can I back out of a contract after signing?

Once signed, the involved parties are considered legally bound to the contract terms, but you may still have 3 to 5 days to back out of a contract.