How to cancel a contract or subscription the right way
A phone call to customer service or a button in an app rarely leaves a record you can use. That matters three months later, when the company is still charging you "by mistake". A signed letter sent with proof of delivery is what your bank's chargeback team, or a small-claims judge, will ask to see.
Companies make leaving slow on purpose: cancellation pages that are hard to find, "are you sure?" loops, minimum terms in small print. A letter that names your account, gives an end date and quotes the rule that applies cuts through most of that.
Your statutory right to cancel
In the United Kingdom: the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you a 14-day cooling-off period for any contract concluded at distance (online, phone, mail-order) or off-premises (doorstep, fair, exhibition). Regulation 29 grants the right to cancel; regulation 34 requires a refund within 14 days of receiving notice. Some categories are excluded (perishable goods, sealed audio/video opened, services already fully performed with consent).
The Consumer Rights Act 2015 separately gives you remedies if the service is not performed with reasonable care and skill. Financial products are governed by the FCA Handbook, which sets specific cooling-off periods (14 days for most insurance, 30 days for life and pensions).
In the United States: the FTC Cooling-Off Rule (16 CFR Part 429) gives you three business days to cancel sales of $25 or more made at your home, your workplace or a temporary location. It does not cover ordinary online purchases. The FTC's 2024 "Click to Cancel" rule was struck down by a federal appeals court in 2025 before it took effect, so online subscriptions are mostly a matter of state law, including state consumer-protection (UDAP) statutes. California (Auto Renewal Law, Bus. & Prof. Code § 17600 et seq.) and New York (GBL § 527-a) require a clear online cancellation method whenever a subscription was signed up online.
What the letter must include
- Your account or contract number, exactly as it appears on the bill
- The product or service you are cancelling and the start date
- An unconditional statement that you are cancelling
- The date the cancellation takes effect, worked out from any minimum term or notice clause
- An express request for written confirmation and a final invoice
- An instruction to stop all future charges to your card or direct debit
- Reference to the relevant statute (CCR 2013 reg. 29 in the UK; the FTC rule or state ARL in the US)
- Proof of postage: Royal Mail Signed For in the UK, USPS Certified Mail with Return Receipt in the US
Step by step
- Pull your contract and find the notice clause and minimum term
- Work out the earliest date you can cancel
- Draft the letter, citing the relevant regulation if you are inside a cooling-off window
- Send by tracked mail and keep the receipt
- Notify your bank (UK: cancel the Direct Debit through the Direct Debit Guarantee; US: revoke ACH authorisation in writing under Regulation E)
- If the company keeps billing you, dispute the charge with your card issuer under Section 75 Consumer Credit Act 1974 (UK, credit card, £100–£30,000) or under Regulation Z (12 CFR 1026.13) for billing errors (US)
Special cases
Gym memberships: the UK Competition and Markets Authority issued formal undertakings in 2014 forcing major chains to drop unfair lock-in clauses. If you've moved too far away, lost your job or developed a medical condition that stops you training, say so in the letter and ask to be released.
Mobile and broadband: in the UK, Ofcom rules let you leave without a penalty within 30 days of being told about a contract change that isn't to your advantage, such as a price rise the contract didn't set out. In the US, the FCC's broadband label rules (in force since 2024) help you dispute fees you weren't shown.
Insurance: 14 days under FCA rules (UK), or check the state-specific "free look" period (typically 10–30 days for life policies in the US).
Mistakes to avoid
- Cancelling only the direct debit: the contract is still live and the debt keeps growing
- Sending an email you can't prove was received
- Missing the notice deadline by one day, triggering an automatic renewal
- Failing to ask for written confirmation
- Ignoring the minimum-term penalty clause without challenging its enforceability under the Consumer Rights Act 2015 (UK) or your state's unconscionability doctrine (US)
- Returning goods late: under CCR 2013 reg. 35 you have 14 days from your cancellation notice to send them back
How to challenge a "minimum term" lock-in
Many UK gym, broadband and mobile contracts come with a 12, 18 or 24-month minimum term. The Competition and Markets Authority has repeatedly held that unfair lock-in clauses are unenforceable under Part 2 of the Consumer Rights Act 2015 ("Unfair Terms") when they:
- Lock the consumer in for an excessive period
- Make early exit prohibitively expensive
- Were not brought to the consumer's attention before signing
- Are out of proportion to the legitimate business interest
Cite section 62 of the Consumer Rights Act 2015 ("Requirement for contract terms and notices to be fair") in your letter. If the trader refuses to release you, escalate to the relevant ombudsman or to Trading Standards via Citizens Advice.
What Lettrio writes for you
Enter the company, your account number and the date you want the contract to end. Lettrio writes the cancellation with the rule that applies where you live (CCR 2013 or FCA cooling-off in the UK, the FTC Cooling-Off Rule or your state's auto-renewal law in the US), asks for written confirmation and tells the company to stop taking payments. Print the PDF and send it by Royal Mail Signed For or USPS Certified Mail, or have us post it.