I booked a room at a hotel in the Austrian Alps (I hadn't paid for the room, nor did I give them any credit card details at the time of booking). However 2 days after making the booking I informed them I no longer require the room. They told me that because it is less than 21 days until the booking I must transfer them a cancellation fee of 40% of the original hotel amount.
I live in the UK. The cancellation fee policy was disclosed on the confirmation the hotel sent me once I booked the room over the telephone.
What are the likely scenarios if I ignore the hotel's request for a cancellation payment?