Automatic cancellation of an attached distance contractU.K.
12.—(1) For the purposes of this regulation, where there is a distance contract for the provision of a financial service by a supplier to a consumer (“the main contract”) and there is a further distance contract (“the secondary contract”) for the provision to that consumer of a further financial service by—
(a)the same supplier, or
(b)a third party, the further financial service being provided pursuant to an agreement between the third party and the supplier under the main contract,
then the secondary contract (referred to in these Regulations as an “attached contract”) is attached to the main contract if any of the conditions in paragraph (2) are satisfied.
(2) The conditions referred to in paragraph (1) are—
(a)the secondary contract is entered into in compliance with a term of the main contract;
(b)the main contract is, or is to be, financed by the secondary contract;
(c)the main contract is a debtor-creditor-supplier agreement within the meaning of the 1974 Act, and the secondary contract is, or is to be, financed by the main contract;
(d)the secondary contract is entered into by the consumer to induce the supplier to enter into the main contract;
(e)performance of the secondary contract requires performance of the main contract.
(3) Where a main contract is cancelled by a notice of cancellation given under regulation 9—
(a)the cancellation of the main contract also operates to cancel, at the time at which the main contract is cancelled, any attached contract which is not a contract or agreement of a type listed in regulation 11(1); and
(b)the supplier under the main contract shall, if he is not the supplier under the attached contract, forthwith on receipt of the notice of cancellation inform the supplier under the attached contract.
(4) Paragraph (3)(a) does not apply to an attached contract if, at or before the time at which the notice of cancellation in respect of the main contract is given, the consumer has given and not withdrawn a notice to the supplier under the main contract that cancellation of the main contract is not to operate to cancel that attached contract.
(5) Where a main contract made by an authorised person, the making or performance of which constitutes or is part of a regulated activity carried on by him, is cancelled under rules made by the Authority corresponding to regulation 9—
(a)the cancellation of the main contract also operates to cancel, at the time at which the main contract is cancelled, any attached contract which is not a contract or agreement of a type listed in regulation 11(1); and
(b)the supplier under the main contract shall, if he is not the supplier under the attached contract, inform the supplier under the attached contract forthwith on receiving notification of the consumer’s intention to cancel the main contract by that notification.
(6) Paragraph (5)(a) does not apply to an attached contract if, at or before the time at which the consumer gives notification of his intention to cancel the main contract by that notification, the consumer has given and not withdrawn a notice to the supplier under the main contract that cancellation of the main contract is not to operate to cancel that attached contract.