Cancellation notice: client care letter, TOB or CFA?

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134, apply if you enter into an off-premises or distance contract with a consumer client.

At the heart of the regulations is the duty to give the client:

1. •

   notice of their right to cancel (called Instructions for cancellation) and

2. •

   a prescribed cancellation form

These are separate documents, which can be found in Schedule 3 of the Regulations—see precedents: Instructions for cancellation (non-digital content) or Instructions for cancellation (digital content) and Cancellation form

This Q&A deals with the practical question: should you include the Instructions for cancellation in your client care letter or terms of business. It also suggests best practice where you are entering into a funding agreement, eg a conditional fee agreement (CFA) or damages-based agreement (DBA). Where this Q&A refers to CFAs, the same principles apply to DBAs.