The cancellation fee must, according to the CPA, be calculated by considering the amount you still owe and the value of the transaction up to the date of cancellation as well as t he value of t he goods you will keep, the value of the goods you return to the business, the duration of the contract, your benefits and losses, the nature of the goods or services that you reserved or booked, the length of the notice period, the reasonable potential for the business to f i nd someone else to enter i nto an agreement within the notice period and t he general practice of t he relevant industry.
However, the supplier cannot charge a fee that will make you not use your right to cancel a f i xed-term contract. The business must a l so ensure you know there will be a cancellation fee if you cancel before the end of the contract. If the business cancels On the other hand, the business can cancel the agreement within 20 business days after giving you written notice if you did not pay the agreed amount or complied with the terms of the agreement in an important way, unless you pay or comply within that time frame. Although this sounds like a good way to get out of a f i xed term contract, remember that you will be l isted as a bad payer with the credit bureaus if you stop paying, preventing you from getting credit in the future.