§1679e — Title 15 Commerce and Trade | U.S. Code

Summary

You can cancel a contract with a credit repair company without any penalty if you tell them before midnight of the 3rd business day that starts after you sign the contract. The company must give you a two‑copy form called "Notice of Cancellation" that shows how to cancel by mailing or delivering a signed, dated copy before that deadline. The company must also give you a copy of the completed contract, the required disclosure statement, and any other papers you are asked to sign.

Title 15, §1679e

Commerce and Trade — Source: USLM XML via OLRC

(a)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)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 ].”.

(c)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,

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

For a prior section 407 of Pub. L. 90–321, see note set out under section 1679 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable after the end of the 6-month period beginning on Sept. 30, 1996, except with respect to contracts entered into by a credit repair organization before the end of such period, see section 413 of Pub. L. 90–321, as added by Pub. L. 104–208, set out as a note under section 1679 of this title.

§1679e Right to Cancel Contract