The effect of cancellation (ss 70–73 of the CCA 1974) is as follows:
• The agreement is erased and there is no liability under it.
• All sums cease to be payable and all sums paid out are recoverable (for example, a deposit).
• The hirer or debtor is not obliged to return the goods but must hand them over if the owner calls at a reasonable time.
• The hirer or debtor has a duty to take care of the goods for 21 days after notice of cancellation. During that period, he or she is liable if he or she accidentally damages the goods; on expiry of the 21 days, he or she is only liable if he or she
deliberately damages the goods.
• The hirer has a lien on the goods for the repayment of sums paid under the
Agreement.
• Any part-exchange goods can be recovered within 10 days or a part-exchange
allowance must be given to the hirer.
• Any linked transaction is also terminated.
• If a debtor has received credit under a loan agreement, no interest is payable if
he or she repays it within one month of cancellation or before the first repayment is due.