Three Day Right Of Rescission by DJPaparazzi

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									When do consumers have a 3-day right to                                                                                                   POINTS TO REMEMBER
cancel a contract or purchase?                                                                                                                Three Day Right of Rescission
                          There has been       negotiations. Finally, the law does not       protection for these consumers as well.
                          much confusion       apply to sales conducted entirely by          The receipt or contract and notice of        • The three day right of rescission does not
                          about contracts      mail or telephone, with no other contact      the right to cancel must be written            apply to all consumer transactions
                          and the three-day    between the buyer and seller.                 in the same language principally used
                          right of rescis-          Under the law, the salesperson           in the sales presentation. For example,      • Cosigners will be held liable for contracts
                          sion law, com-       must tell you about your cancellation         if buyer and seller spoke Spanish during
                          monly referred       rights at the time of sale. The salesperson   the sale, the receipt or the contract must   • Consult with an attorney before you sign
                          to as the “cooling   also must give you two copies of a            also be in Spanish.                            a contact if you have questions
                          off period.”         cancellation form, one to keep and one             If you decide to cancel, the seller
                          Many consumers       to send, and a copy of your contract          has ten business days to refund your         For a copy of the Chapter 39, Cancellation
are under the impression that these            or receipt. The contract or receipt should    money, return any note you may have          of Certain Consumer Transactions of Texas
laws apply to any and all consumer             be dated, show the name and address           signed concerning the sale, and return             Business and Commerce Code:
purchases. However, this is not true.          of the seller, and explain your right         any trade-in items. The seller of the
The right of rescission law applies only       to cancel.                                    goods must notify you within ten days                  Texas State Law Library
to very specific situations. The three              If the salesperson provided you          whether he or she intends to retrieve                  Post Office Box 12367
                                                                                                                                                       Austin, TX 78711
day right of rescission law applies to         with the right forms, to cancel the sale      the goods or abandon them. He or
                                                                                                                                                       (512) 463-1722
sales made at facilities other than the        you may simply sign the one titled "notice    she may not require you to mail or ship
seller’s place of business. Such locations     of cancellation," date it, and mail it back   the goods back.
may be the consumers residence and             to the seller. To obtain a full refund,            If the seller fails to notify you of    For information on federal cooling off laws:
areas rented on a temporary or short-term      you must do this before midnight of           his or her intention to repossess the
basis, such as hotel rooms or convention       the third business day after the sale.        goods within 20 days of cancellation,                Consumer Response Center
centers.                                       Keep a copy of the form.                      you may not be forced to return the                  Federal Trade Commission
     There are several exceptions to                If the salesperson did not provide       goods at a later date. You are not                   600 Pennsylvania Ave. NW
the law . There is no three-day right          a cancellation form, you may still cancel     obligated to return goods to the seller                Washington, DC 20580
of recision for goods or services              your contract. Because the seller violated    until you have recovered either your                  877-FTC-HELP (382-4357)
purchased for less than $25, or for the        the law by not providing the form, you        money or your note.                               
purchase of insurance and farm                 have extra time. But remember, you                 If you are unsure or concerned
equipment. Other exceptions are real           must cancel in writing. Be sure to keep       about signing a contract, you should         For assistance in locating a private attorney
estate purchases of less than $100 made        a copy of the contract and your letter        consult with a private attorney before         contact the State Bar of Texas at (800)
at a place other than the merchant's           notifying the seller of the cancellation.     you sign it.                                      252-9690 or
place of business, a sale involving an         It is a good idea to get this done as
attorney or broker, and sales made             soon as possible.

pursuant to prior negotiations at the               We have also received inquiries
merchant's business establishment,             from consumers who speak languages
where the sale is the result of those          other than English. The law provides

                                                                      Information on this and other topics is available on the
                                                                          Attorney General’s Web site at

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