Customer Cancellation Policy and Procedure

Purpose

Standardize how the company responds when a customer cancels or reschedules a scheduled appointment. The policy balances three concerns: protecting technician utilization (a cancelled job costs the labor hours regardless), being fair to customers (life happens), and complying with state laws on consumer cancellation rights for certain in-home sales.

Scope

Applies to all scheduled appointments where the company has committed a technician and a time window. Includes:

• Service calls (diagnostic visits, repair visits, maintenance visits)
• Estimate appointments
• Installation appointments
• Recurring service visits

Does not apply to:

• Customer-initiated rescheduling more than 48 hours in advance (no fee)
• Cancellations driven by company error (no fee, apology, reschedule)
• Cancellations driven by weather, declared emergencies, or other force-majeure events (no fee)

Roles and responsibilities

Policy structure

The recommended tiered structure:

The dollar amount of any cancellation fee is set per company; this SOP defines the policy structure, not the amount.

Legal framework

A cancellation policy is enforceable only if disclosed to the customer before the appointment is scheduled. Key legal considerations:

• Disclosure at booking. The policy must be communicated when the appointment is set, not surprise the customer at the time of cancellation. Methods: spoken disclosure during the phone booking, text confirmation containing the policy, email confirmation with the policy attached.
• Federal Trade Commission Cooling-Off Rule, 16 CFR Part 429. For in-home sales above the threshold amount, customers have a three-business-day right to cancel without fee. This applies to the sale of services in the home (estimate visits don't trigger it; signed contracts in the home above the threshold do). The notice must be provided in writing in the manner specified in the rule.
• State consumer protection laws. Many states layer additional cancellation-rights protections on top of federal rules. California's Home Solicitation Sales Act (Civil Code §§1689.5 et seq.) is one example. Verify state requirements before drafting the policy.
• Service contracts. Recurring maintenance contracts typically have their own cancellation terms governed by the contract, not by this drop-in policy.
• Trip fees vs. cancellation fees. A trip fee charged for a visit that occurred is different from a cancellation fee for a visit that didn't. Don't conflate them in the policy language.

Procedure: handling an incoming cancellation

Step 1: Receive the cancellation

The CSR answers the call (or processes the email/text) and confirms the appointment details:

• Customer name
• Appointment date and time window
• Service being performed
• Original scheduling channel (phone, online, walk-in)

Step 2: Determine the window

Calculate hours between the call and the scheduled appointment start. Standard categories:

• 48+ hours: no fee, polite reschedule offered
• 24-48 hours: no fee, friendly mention of the 24-hour policy
• 0-24 hours: fee may apply per policy
• Past the appointment time (no-show): fee applies

Step 3: Identify exemptions

Before applying any fee, check exemptions:

• Weather event affecting the customer's neighborhood
• Customer medical emergency (take the customer at their word; do not request documentation)
• Family emergency (same)
• Company-side error in the original booking
• First-time customer with no booking history (one-time courtesy)

If an exemption applies, no fee. Document the reason.

Step 4: Apply the fee, if applicable

If no exemption and the window is inside the fee threshold:

• State the policy plainly: "Our cancellation policy charges a fee for cancellations inside 24 hours. The fee for today would be [amount]."
• Do not apologize for charging the fee; do not negotiate on the spot.
• Offer to reschedule the appointment with the fee deferred until the rescheduled visit.
• If the customer pushes back significantly, escalate to the service manager. Do not unilaterally waive.

Step 5: Reschedule or close out

• If rescheduling: offer the next available slot. Confirm. Send written confirmation.
• If not rescheduling: close out the appointment in the dispatch system. Note the reason.

Step 6: Notify dispatch

Dispatch needs to know within minutes so the technician's day can be reoptimized. A 9 AM appointment cancelled at 8:30 AM creates an opportunity to slot another job; cancelled at 9:30 AM after the technician has driven there is a sunk cost.

Step 7: Document

In the CRM:

• Cancellation date and time
• Reason given by customer
• Window category (48+ / 24-48 / 0-24 / no-show)
• Fee applied or waived
• Reschedule status
• CSR who handled the call

Procedure: handling a no-show

The technician arrives at the property at the scheduled time and the customer is not home, not answering, and not responding to texts.

Wait and re-contact

• Wait at the property for the agreed grace period (15 minutes is standard).
• Call the customer (don't text - phone signals urgency).
• Call the secondary contact if one is on file.
• Send a text if no answer.

Document the no-show

If no contact is made within the grace period:

• Photo or geotagged record of arrival.
• Time-stamped log of contact attempts.
• Technician leaves a door-hanger or note documenting the visit.
• Notify dispatch.

Apply the policy

The CSR will follow up with the customer within 24 hours:

• Inform them the no-show occurred.
• Apply the no-show fee per policy.
• Offer to reschedule with the fee billed.

References

• Federal Trade Commission Cooling-Off Rule, 16 CFR Part 429 - three-business-day right to cancel for in-home sales.
• California Home Solicitation Sales Act, Cal. Civ. Code §§ 1689.5-1689.14.
• Restatement (Second) of Contracts §§ 350-351 - mitigation of damages.
• State consumer protection statutes (varies by state - verify before drafting).
• Manuall internal: Customer Trust After Mistake, Documenting Service for Insurance.