For Immediate Release:
March 12, 2010
Consumer cooling-off period does not always apply
Three-day rescission may not be your decision
FREEHOLD, NJ – The Monmouth County Department of Consumer Affairs answers all sorts of questions about consumer issues. From product warranties and billing disputes to mortgage refinancing and vacation scams, the questions roll in. The staff responds with information and assistance to thousands of people each year.
“By and far the most frequently asked consumer question is about how long someone has to cancel a contract,” said Patricia Watson, director of the county’s Department of Consumer Affairs. “Many people incorrectly believe that after they sign any contract, they have up to three days to cancel that contract. In most consumer-related situations, you do not have the option to cancel a contract after you have signed on the dotted line.”
A three-day rescission, or a “cooling off” period, does apply if a contract or agreement is signed in your home. These include home improvement contracts or a contract signed at a temporary business location, such as a trade show or fair.
Watson recommends that you ask if the contract you are about to sign provides a cancellation clause. If it does not have a cancellation provision, you should then ask yourself: Do I know enough about this company to give them a deposit that I may never get back?
“Often people listen to a convincing sales pitch and sign up with a company,” Watson said. “Then they go home, conduct some Internet research and discover that there are complaints filed against that business. At that point it is too late to cancel because you have already signed a contract.”
Rescission is the act of rescinding. It is the act of canceling a contract and the return of the involved parties to the positions they would have had if the contract had not been made. Rescission may be brought about by decree or by mutual consent of the parties involved.
“When you sign a contract it is legally binding,” Watson said. “Exercise caution and think before you sign. Know what you are signing up for because you are bound to it. A business can sue you if you don’t comply.
Consumer Affairs will help consumers resolve all types of consumer-related issues. Information about rescission, fraud and other consumer affairs programs can be found on the county Web site at
http://www.visitmonmouth.com/page.aspx?ID=649 or by calling 732-431-7900. The office is open weekdays from 8:30 a.m. to 4:30 p.m.
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