Contract cancellations and refunds due to Coronavirus

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There are a wide range of contracts that have been affected due to the pandemic.

The new statement replaces what was published by the Competition and Markets Authority (CMA) on April 30, 2020.

The CMA’s view remains that a consumer will generally be entitled to a refund when they have paid money in advance for services or goods that cannot be provided because of the coronavirus pandemic.

As the circumstances and public health measures relating to the pandemic have developed over time, CMA have updated the statement to cover additional issues.

This now covers contracts that cannot go ahead due to lockdown laws, limited exceptions to full refunds, ongoing contracts, non-refundable payments and fees, credits and rebooking and payments for future services.

It also outlines contracts that are partially affected by lockdown laws, changing terms in existing contracts during the pandemic, terms in new contracts which relate to the coronavirus and cancellation relating to Government guidance and cancellation under the standard terms and conditions of a contract.

It is important you are aware the guidance exists and the relationship between businesses and customers.

You can read the statement in full here.

If you have any issues with contracts entered into and need expert advice please talk to us and we can recommend a local solicitor to help.