A Marketplace Tip from Your BBB Denver/Boulder
When signing a contract, make sure you understand the contract before you sign it, and never assume that you will be able to cancel it.
When signing a contract, make sure you understand the contract before you sign it, and never assume that you will be able to cancel it. If you have a contract dispute, you may wish to retain a private attorney or go to Small Claims Court if the matter involves $7,500 or less. Your notice of cancellation of a contract should always be given in writing. You should send the notice by certified or registered mail so you have proof of the company's receipt of your notice.
You have no statutory right to cancel the completed sale of a car. Basically, when you enter into a sales or lease agreement and drive the car off the lot, it is yours. The following is a list of nine situations where you may be able to cancel the purchase of a product or service:
- Home solicitation sales may be cancelled until midnight of the third business day after the day of the sale. This does not apply to emergency services, such as emergency plumbing repairs.
- If you purchase a hearing aid, you have 30 calendar days after you receive it to request a refund.
- Health club contracts may be cancelled within 3 days after you receive your copy of the contract.
- Buyers club memberships may be cancelled in writing by the close of business on the next business day.
- Cash donations to charitable organizations may be cancelled before midnight of the third business day, after you receive written confirmation of your contribution from the charity. However, donation of used goods such as clothing, toys, furniture, or appliances have a one-day cancellation period.
- In many instances, telephone sales solicitations can be cancelled within 3 business days after receipt of the goods or services.
- Credit repair contracts must contain written notice of your right to cancel, which is within five working days from the date the contract is signed.
- Time-share contracts may be cancelled within five calendar days after the sale.
- Dance club studio contracts may be cancelled any time during the contract term. However, you must still pay 10% of the contract, plus the lessons you have already received.
