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As it was a renewal of an existing contract that was already in place, there is no legal right to a cancellation period.
As this is the default position, there is no need for this lack of cancellation period to be stated on the documents.
It's a bit like when you buy goods in a store.
The default position in law is that you have no right to a change of mind return so there is no need for this to be stated in store or on the receipt.
Even though your father may not have signed and returned the renewal form, the act of paying for the service to continue will be enough to show proof that he accepted the renewal.
When you have a rolling contract in place, you don't have to sign to accept it each year. (think of house or motor insurance when the renewal documents are sent out and simply by paying you are accepting the renewal.
Whilst what they are doing may appear to be poor customer service, it is within what the law entitles them to do.
Originally posted by shaun from Africa
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Thanks for your response.
I believe that the initial warranty expired. This was included within the purchase when the stair lift was first installed and valid for the first 5 years of use, it was not a roll-over policy but the ending of a warranty. It was suggested by the said company that my father then take up a new yearly service contract to cover call-outs and servicing.
After ringing the company he chose to take out a 12 month service agreement and was asked to pay the full 1 year premium amount over the phone. Apart from explaining his cover and taking his payment there was no mention of the actual service agreements terms & conditions. He received an acknowledgement of payment through the post which included a remark about the agreements T&C’s being enclosed separately and needing a signature and sending back.
There was no agreement enclosed with the payment receipt to view or sign, and my mother is absolute that an agreement declaration was not present and nor did she complete this on his behalf or post back. (my father was disabled and housebound and could not have done this himself).
I’m sure that there should be some legal obligation that a person should be made aware of a service agreement terms before it can become validated between two parties. This was a new policy and not an extension of warranty or continuance.
Although the stair-lift is only just over 5 years old and 100% operational and cosmetically very good because of limited use. (my father resided downstairs 24/7) the company has only offered to remove it free of charge but say it has no market or retail value anymore, so will not offer to buy-it-back.
Some members have stated the dilemma is similar to car insurance and any service agreement cannot be refunded. In the past I have either cancelled car insurance because of selling a car, it not passing an MOT or because I have purchased a new car with free insurance. In these cases I have had to pay for the cover used up to the end of that calendar month, and an administration fee for cancelling. The remainder of the funds have then been returned.
In hindsight, if polices was paid monthly whether as remarked it is for home care, car insurance or service agreements etc, then it would not only prevent situations arising but allow easy administration and cancellations and reduce losses of people in unfortunate circumstances.
Overall, I’m not sure the agreement was actually binding and may have a claim against the company if pursued, but in honesty I would rather just received some return inclusive of any administration fees payable for the service which so obviously will never be called upon or cost anyone other than my mother any financial discomfort.