Understanding the Cooling Off Rule
By law, you have three business days to cancel any purchase of goods or services of $25.00 or more that you have made in your home or somewhere other than the seller's usual place of business.
The rule does not apply to:
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sales made at the seller’s usual place of
business;
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sales made totally by mail or phone;
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sales for real estate, insurance or
securities; and
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sales for emergency home repairs.
The rule also does not apply to sales that begin as transactions at a business that are completed with the signing of a contract in your home. For example, the rule would not apply if you ordered kitchen cabinets at a store and signed the contract when someone comes to your home to take measurements.
In cases where the rule does apply, the seller must provide you with the cancellation forms along with any contract 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.