(1) Where a consumer exercises the right to withdraw from a timeshare or long-term holiday product contract the following are also automatically terminated:
(a) an exchange contract which is also an ancillary contract, or
(b) any other ancillary contract.
(2) Where a contract referred to in paragraph (1) is automatically terminated in accordance with that paragraph, the consumer is not liable for any costs purported to have been incurred, services performed, penalty, or further instalments of the schedule of payments by instalment referred to in Regulation 17.
(3) A trader who purports to perform obligations or seek performance of obligations under a contract referred to in paragraph (1), including in relation to any costs purported to have been incurred, services performed, penalty, or further instalments of the schedule of payments by instalment referred to in Regulation 17, shall be guilty of an offence.