‘Cooling off’ rule has some guidelines
Although the three-day “cooling off” rule has been in effect for years, the Better Business Bureau reports many consumers are still confused about their rights. Here is a reminder of where and when this rule applies.
Under the Federal Trade Commission’s cooling off rule, you have three business days to cancel any purchase of $25 or more that you have made in your home or somewhere other than the seller’s usual place of business, such as a rented hotel room. The cooling off rule also provides protection for consumers who purchase items at a product party given in a private home.
However, as with every rule there are exceptions. The cooling off rule does not apply to: sales made at the seller’s usual place of business; sales made totally by mail or phone; sales for real estate, insurance or securities; and sales for emergency home repairs.
The rule also does not apply to sales that begin as retail transactions at a business establishment, and are completed with the signing of a contract in your home. For instance, ordering carpet at a store and signing the contract when someone comes to your home to measure floor space.
In cases where the rule does apply, the seller must give you the proper cancellation forms along with any contract or receipt pertaining to the sale.
The date of the sale should be noted on the cancellation form, which must read in part, “You may cancel this transaction without any penalty or obligation, within three business days from the above date.”
If you decide to cancel the sale, sign and date the cancellation form. Mail or deliver a copy to the address given for cancellation anytime before midnight of the third business day after the date of the contract. Also, keep a copy for your personal records.
Since proof of the date you mailed the cancellation form to the company is important, send it from the post office via certified mail with a return receipt requested. You do not need to give a reason for the cancellation.
To avoid having to cancel a purchase, be sure to completely read and understand the contract before you sign on the dotted line.
For more information or a reliability report on a company, call the Better Business Bureau office during regular business hours at (615) 867-0032 or the Bureau’s 24-hour information hotline, 242-4BBB, toll free 800-989-4222 or visit www.middletennessee.-bbb.org.