Suffering from buyer’s remorse? If you made your purchase from a door-to-door salesperson at your home, you may have the right to cancel the contract. A federal regulation provides a “Cooling-Off Rule” which gives you three business days to cancel purchases of $25 or more for some consumer services or goods.
The Cooling-Off Rule also applies to sales made at locations that are not the seller’s usual place of business. These include sales at your work place, facilities rented by the seller on a temporary basis (such as a hotel room), convention centers, fairgrounds, restaurants, and even at a “sales party” in a private home.
Under this Rule, the salesperson must tell you about your cancellation rights at the time of sale. The salesperson also must give you two copies of a cancellation form and a copy of the contract or a receipt at the time of sale. The contract or receipt must be dated, show the name and address of the seller, and explain your right to cancel.
However, the Cooling-Off Rule does not cover sales that are made entirely by mail or telephone, or are needed because of an emergency, or at your request to perform maintenance or repairs at your home. Also exempt are sales that involve real estate, insurance, securities, motor vehicles, and mobile homes.
When mailing the cancellation form to cancel a sale, make sure the envelope is post-marked before midnight of the third business day after the contract date. If the seller did not provide a cancellation form, you may write your own cancellation letter. It is recommended you send the cancellation letter by certified mail, return receipt, and keep a copy for your files.
For more details, schedule an appointment with a military attorney at your nearest Naval Legal Service Office.