Cooling off period

Also known as a cancellation period, under the Consumer Credit Act, 1995, you have the right within 10 days to reconsider a credit agreement (loan or credit card offer) and refuse in writing the agreement on offer without obligation. If you choose to waive this entitlement, the agreement takes effect immediately.

Similarly, you have a 14-day period, in the case of investments and insurances during which you may change your mind about an investment you have just made and have your money back instead. However, there are exceptions, for example, in the case of life insurance and individual pensions, the “cooling off” period will be 30 days.

Cooling off periods apply only to some investments (there is no “cooling off” period for services such as share purchases where the price depends on fluctuations in the market) and are not available if you buy off-the-page in response to an advertisement or as an execution-only customer.

See also: Financial Services