Processing Cancellations

Consumer Contracts Regulations 2013 (CCR)

The Consumer Contracts Regulations 2013 provide for a statutory cooling-off period for consumers who engage services at a distance (including online), typically running from the date the engagement letter is signed. Within that period a client may generally cancel without giving a reason.

Rights of this kind are usually treated as statutory and may not be capable of being waived or reduced by your terms and conditions. Where a client has expressly asked you to begin work during the cooling-off period, a proportionate deduction for work already completed may be possible. How the regulations apply to your own engagements is a question for your compliance adviser or another qualified professional.

IPW Code Requirements

If you are an IPW member, the IPW Code of Practice is generally described as aligning with the CCR statutory period. Areas the Code is understood to cover in addition include:

• Cancellation form: engagement letters are typically expected to include a cancellation form or clear instructions for exercising the right
• No penalty clause: penalties beyond a proportionate deduction for work completed may not be permitted
• Prompt acknowledgement: cancellations are usually expected to be acknowledged in writing within 2 working days
• Refund processing: any refund owed may need to be processed within 14 days of the cancellation

These are summaries rather than the rule itself. The IPW Code of Practice is the authoritative source for members, and how it applies to your own engagements is a question for your compliance adviser or another qualified professional.

Calculating Deductions

If a client cancels during the cooling-off period and you have already started work at their request, you may deduct a proportionate amount. The deduction must be based on:

• Work actually completed: only work genuinely performed before the cancellation, not anticipated future work
• Proportion of total service: the deduction should reflect the fraction of the total service that has been delivered
• Documented evidence: a record of what work was completed and how the deduction was calculated is usually expected

Where no work has been started, a full refund will typically be due, and an administration fee or cancellation penalty may not be permitted.

When a Client Cancels

When a client exercises their cooling-off rights on Expat183, the following happens automatically:

1. The approach status changes to Cancelled by consumer
2. Any unpaid invoices (Draft, Sent, Viewed, Overdue or Disputed) are automatically cancelled
3. Any legal reviews in progress are cancelled
4. Any future appointments that are reserved, scheduled or confirmed are cancelled
5. Your access to the client’s data is downgraded to compliance-only (retained documents required by law, such as Larke v Nugus records, remain accessible)
6. The client relationship is marked as withdrawn on your dashboard
7. A notification appears in your notification centre
8. You receive an email notification about the cancellation
9. The conversation is archived automatically

Your Responsibilities

After a cancellation, the usual steps are:

• Review the cancellation: check whether any work was completed that justifies a proportionate deduction
• Process any refund: if the client has already paid and a refund is owed, process it within 14 days
• Do not contact to persuade: a client’s right to cancel during the cooling-off period is not usually something a professional can talk them out of, so do not attempt to dissuade them
• Retain records: keep a record of the engagement and cancellation for your compliance files

Professional-Initiated Cancellation

You may also cancel an engagement letter before it has been signed. Common reasons include:

• Conflict of interest discovered after the letter was sent
• Client is not responsive and you wish to withdraw the offer
• The scope of work has changed significantly

To cancel, open the engagement letter and click Cancel letter. This is available while the letter is a draft, or after it has been sent or viewed, but not once it has been signed. A system message is posted to the conversation and the client is notified by email. If you would rather revise the letter than withdraw it, use Amend Letter instead, which is available once the letter has been sent or viewed.

Off-Platform Cancellations

If a client cancels their engagement outside the platform, for example by email, telephone, post, or in person, report the cancellation on Expat183 to maintain the audit trail and trigger the standard cancellation cascade.

1. Open the accepted approach on your dashboard
2. Click Report Off-Platform Cancellation
3. Select how the client communicated the cancellation (email, telephone, post, or in person)
4. Enter the date the client actually cancelled
5. Select a reason category and provide any supporting evidence (e.g. email subject line, call record)
6. Submit. The same cascade runs as for an online cancellation