15 U.S.C. § 1679e — Right to cancel contract

submitted 30 years ago by Pub. L. 90-321 to r/title-15-COMMERCE-AND-TRADE · 260 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section gives consumers three business days to cancel a credit-repair contract without penalty. It requires cancellation forms and copies of signed documents.

(a) A consumer may cancel a credit-repair contract without penalty or obligation by notifying the organization before midnight of the third business day beginning after signing, or after the date it otherwise would become enforceable. (b) Each contract must include two copies of a “Notice of Cancellation” form in bold type. It must say the consumer may cancel without penalty before midnight of the third day after signing, give the organization’s name and address and the cancellation date in the stated blanks, and include a dated cancellation statement and purchaser-signature line. (c) At signing, the organization must give the consumer a copy of the completed contract, the section 1679c disclosure, and every other document the organization requires the consumer to sign.

the actual law source: uscode.house.gov ↗public domain

(a) In general

Any consumer may cancel any contract with any credit repair organization without penalty or obligation by notifying the credit repair organization of the consumer’s intention to do so at any time before midnight of the 3rd business day which begins after the date on which the contract or agreement between the consumer and the credit repair organization is executed or would, but for this subsection, become enforceable against the parties.

(b) Cancellation form and other information

Each contract shall be accompanied by a form, in duplicate, which has the heading “Notice of Cancellation” and contains in bold face type the following statement:

“You may cancel this contract, without any penalty or obligation, at any time before midnight of the 3rd day which begins after the date the contract is signed by you.

“To cancel this contract, mail or deliver a signed, dated copy of this cancellation notice, or any other written notice to [ name of credit repair organization ] at [ address of credit repair organization ] before midnight on [ date ]

“I hereby cancel this transaction,

[ date ]

[ purchaser’s signature ].”.

Any consumer who enters into any contract with any credit repair organization shall be given, by the organization—

(1)

a copy of the completed contract and the disclosure statement required under section 1679c of this title; and

(2)

a copy of any other document the credit repair organization requires the consumer to sign,

at the time the contract or the other document is signed.

Source credit: (Pub. L. 90–321, title IV, § 407, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–459.)

history & why it existsrecord from the source credit

1996Enacted · Pub. L. 90-321 · 110 Stat. 3009

A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-321 on 1996-09-30.

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