Ordered currency cancellation fee.

rad1234

I recently ordered some foreign currency using an on-line currency broker. Essentially how it is supposed to work is you place an order using their on-line system, they confirm the order, and then send you account details to which you do a direct bank transfer. When they receive your money they will then send the foreign currency to your home/place of work.
I placed an order, received the order confirmation but then a did a bit of on-line research, and thought the company although appeared legitimate, looked a little suspicious. So I decided not to continue and did not transfer any money.
Today I got a reminder from the company (the order was placed about 5 days ago) referencing the legal terms of the "contract" I signed when placing my initial order. (I perhaps foolishly didn't check as thoroughly as I should at this stage because no money/credit card info was being exchanged)
In short there is a term that if I cancel my order, I am liable for a cancellation fee (granted rather small at £25). If this is not paid within 7 days they "may take legal action" against me.
I suspect they won't take action for such a small amount, but my question is, assuming this is a legitimate company, am I really liable for this given the circumstances? My understanding is I have a cooling off period for this sort of on-line financial product (14 days?) where I can cancel for free?

Many thanks

steve1980

DSR may apply but you agreed to their terms and conditions.

Why would you use a broker when every shop in the high street does foreign exchange these days?

pooch

rad1234 wrote: »

I recently ordered some foreign currency using an on-line currency broker. Essentially how it is supposed to work is you place an order using their on-line system, they confirm the order, and then send you account details to which you do a direct bank transfer. When they receive your money they will then send the foreign currency to your home/place of work.
I placed an order, received the order confirmation but then a did a bit of on-line research, and thought the company although appeared legitimate, looked a little suspicious. So I decided not to continue and did not transfer any money.
Today I got a reminder from the company (the order was placed about 5 days ago) referencing the legal terms of the "contract" I signed when placing my initial order. (I perhaps foolishly didn't check as thoroughly as I should at this stage because no money/credit card info was being exchanged)
In short there is a term that if I cancel my order, I am liable for a cancellation fee (granted rather small at £25). If this is not paid within 7 days they "may take legal action" against me.
I suspect they won't take action for such a small amount, but my question is, assuming this is a legitimate company, am I really liable for this given the circumstances? My understanding is I have a cooling off period for this sort of on-line financial product (14 days?) where I can cancel for free?

Many thanks

I wouldn't be so sure about the company not pursuing you for the contractual debt.

What does the site say about this cooling off period you understand may apply?

A legal claim for £25 will only cost them another £25 (peanuts in their terms) online, and moreover, that £25 will be added to the £25 you already owe them.

I suggest you pay what you are contractually obliged to without further delay, else you may end up with A CCJ registered against you which would hit you hard later on if you ever applied for any form of credit.

pooch

Btw, arn't contracts relating to financial services specifically excepted from the Consumer Protection (Distance Selling) Regulations 2000 ?

fermi

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

shaun_from_Africa

As stated by pooch, the Distance selling regulations don't apply but there is very similar legislation that does cover financial transactions. This is "The Financial Services (Distance Marketing) Regulations 2004".

However, these regulations have a list of excluded contracts, one of which is:

Subject to paragraphs (2) and (3), regulation 9 does not confer on a consumer a right to cancel a distance contract which is

(a)a contract for a financial service where the price of that service depends
on fluctuations in the financial market outside the suppliers control, which may occur during the cancellation period, such as services related to”

(i)foreign exchange,

http://www.legislation.gov.uk/uksi/2004/2095/regulation/11/made

heretolearn_2

It also seems that you didn't cancel the order at all, you just failed to pay them. Not the same thing.