Locked into a 24-month gym membership or cellphone contract you no longer need? Section 14 of the Consumer Protection Act (CPA) gives you the right to cancel a fixed-term consumer agreement at any time by giving the supplier 20 business days’ notice in writing.
What the supplier may charge
The supplier may charge a reasonable cancellation penalty. Regulation 5 of the CPA Regulations sets out what “reasonable” means: it can reflect things like unrecovered discounts or subsidised hardware, but it may not be so high that it cancels out your right to cancel. Charging you the full value of the remaining months is not allowed.
Step by step
- Generate your notice with our free Section 14 letter. It calculates the end date for you.
- Email it to the supplier’s cancellations address and keep proof of delivery.
- Stop the debit order with your bank once the 20 business days have passed.
- If they refuse, lodge a free complaint with the Consumer Goods and Services Ombud (CGSO), or ICASA for telecoms.
General information, not legal advice.
