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 www.sll.state.tx.us 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. www.ftc.gov 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 www.state.bar.com 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. B 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 www.oag.state.tx.us.