Consumer Rights Act 2022

Effect of termination of service contract on ancillary contract

92. (1) Where a consumer terminates a service contract in accordance with section 88 , any ancillary contract shall be automatically terminated without any cost to the consumer.

(2) When a trader is informed by a consumer in accordance with section 88 (2) of the consumer’s decision to terminate a service contract, the trader shall inform any other trader with whom the consumer has an ancillary contract of the termination of that contract by subsection (1).

(3) Where an ancillary contract is terminated by subsection (1)

(a) the consumer shall comply with the obligation in section 88 (3), and

(b) the trader with whom the consumer had that contract shall comply with the obligations in section 89 .

(4) Where any security has been provided under an ancillary contract that is terminated under subsection (1), it is to be treated as never having had effect and any property lodged with the trader or a person other than the trader (a “third party”) solely for the purposes of that security shall be returned immediately by the trader or third party.

(5) In this section, “ancillary contract”, in relation to a service contract concluded between a consumer and a trader (in this subsection referred to as the “principal contract”), means another contract (other than a hire-purchase agreement or a consumer-hire agreement) concluded between that consumer and that trader, or that consumer and a third party, under which—

(a) the trader, or

(b) in pursuance of arrangements made between the trader and a third party, the third party,

supplies to the consumer goods, digital content, a digital service or a service related to the principal contract.