Story Created:
May 19, 2009 at 7:12 AM CST
Story Updated:
May 19, 2009 at 7:13 AM CST
(May 19, 2009)
Topic: Misconceptions concerning the Texas 3-day cooling off period law.
The 3-day cooling off period applies only to:
· contracts signed in the customer's home - not at a company's place of business –
· consumer goods or services worth $25 or more.
If this cancellation period applies, it should be stated in the contract. To cancel a contract under this provision, mail a written notice of cancellation by midnight of the third business day after the sale. The written notice does not have to be received by the seller within three business days, but must be postmarked within that time. While a customer may choose to call or fax the seller to notify them of the cancellation, the phone call or fax does not cancel the contract - only the written notice does. The customer does not have to give the company a reason for the cancellation. The seller must refund any deposit or down payment within the time stated by law.
While neither the Texas Attorney General's office nor the Federal Trade Commission can provide individual legal advice, both offices offer consumer publications with tips on contracts. Contact the Office of the Attorney General for its publication "Door to Door Sales" at www.oag.state.tx.us, or call 1-800-252-8011. Contact the Federal Trade Commission for Facts for Consumers on the "Cooling Off Rule" at www.ftc.gov.
Topic: A mail out solicitation from ‘Cash Prize Center’ is a two edged sword.
Today an alert concerning a mailing from Cash Prize Center. At first it seems like the usual “you have won..” promotion. The mailer states that the recipient is “eligible” for a two million dollar prize. All the consumer has to do to verify their eligibility is send in $5.95. The tone and appearance of the letter is designed to excite the consumer into thinking they have won something. In the small print on the back of the letter it states that the consumer, “had not won anything yet”. Even if the consumer loses $5.95 it seems not to be a big deal. But wait. That’s not all there is to this tricky deal. Along with sending in a check for $5.95, the consumer is asked to sign an eligibility form. In the small print on the form it states that the consumer wants to join a discount club. So by sending in a check for $5.95 and singing the form the consumer is really agreeing to a $19.90 MONTHLY draft for a discount club. The promoters will use the bank account number on the check to draft the consumer’s account. Note that all of this is probably legal since everything is disclosed.
