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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I recently entered a contract to purchase foreign currency

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I recently entered a contract to purchase foreign currency (Euros - to fund the purchase of a property in Cyprus), but the purchase has fallen through at the last minute. I entered the contract verbally by telephone on 18th November 2015 and attempted to cancel the contract this morning by email.
The Company concerned, FC Exchange from London, have now informed me as follows:-
"Unfortunately we do not have a 14 day cooling off period and we could never offer this to our clients as the currency market is a moving commodity and changes every few seconds, when we purchase currency on your instruction we cannot simply cancel trades as we have to physically buy currency in the live market, so we have already purchased your Euros. If we have to sell the currency back to the live market their will be costs involved in reversing the trade as we cannot sell the currency back to the market at the same rate that you purchased your Euros."
My question is as this is a financial transaction and the contract was made via telephone, am I not able to exercise my right to cancel within a 14 day cooling off period under UK Law?
Many thanks,
Simon Cooper
Hello my name is ***** ***** I will help you.
No sadly not. Under the CONSUMER CONTRACTS (INFORMATION, CANCELLATION AND ADDITIONAL CHARGES) REGULATIONS you would usually have 14 days cooling off. However financial services are generally exempt from these.
If it was something like an ISA etc then you would be able to cancel but something like shares, Forex, currency trading etc is exempt because if you made a deal and lost money you could simply say 'Oh I want to cancel'.
I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?
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