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Notice of Rescission – Federal Law
It
is a requirement of federal law that any contract signed outside
a business office or in your home, contain the language:
You, the buyer, may cancel this transaction at any time prior
to midnight of the third business day after the date of this
transaction. See the attached notice of cancellation form for an
explanation of this right.
The code of Federal Regulations; Title 16, Chapter 1, Subchapter
D, Part 429 is known as the Rule Concerning Cooling-Off Period
For Sales Made At Home Or At Certain Other Locations (16 CFR
429.0). This regulation requires that the following introductory
language be placed in immediate proximity to the space reserved
in the contract for the signature of the buyer or on the front
page of the receipt if a contract is not used. The language must
be in 10 point bold type:
If
the cancellation notice is not attached to the contract, the
above sentence must be altered to reflect the correct location
of the cancellation notice. (i.e. – replace the word
“attached” in the last sentence with the word “accompanying”.)
“Warning”
Do not sign any
contract or authorization unless you are provided with specific
paperwork forms, and thoroughly informed of your rights to
cancel.
Rescission/Right
to Cancel
Notice of Right to
Cancel
Consumer Protection Laws |
