Case Update: Cancellation notices and credit hire

Salat v Barutis [2013] EWCA Civ 1499

Those who have dealt with credit hire will be aware that if the contract has been made at the consumer’s home, work or another place away from the credit hire company’s place of business the company should provide a notice of cancellation informing the consumer of his right to cancel the contract within 7 days. If this cannot be provided the Defendant’s are likely to raise enforceability issues with the hire agreement.

The Court of Appeal in Salat v Barutis [2013] EWCA Civ 1499 has now confirmed this position. As this argument has been around for a while most hire companies are compliant with the regulations however it is worth bearing in mind given the Court of Appeal decision. The Defendant’s representatives are likely to take a stronger stance on any non-compliance.

Laura McCann

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