The initial cancellation, or cooling-off period, is the 14-day period after you sign a regulated car finance agreement, or receive a copy of it, during which you have a legal right under the Consumer Credit Act to cancel the agreement without giving a reason or incurring additional charges.
Where an agreement is cancelled or withdrawn within this 14-day period, it is not considered a scheme case. So, it’s not eligible for compensation under the scheme. This approach helps ensure fairness and consistency by preventing customers from receiving compensation in cases where they haven’t suffered any loss under the agreement.