HE-637 Reprinted April 1998. Fred Waddell, Extension Family Resource Management Specialist, Associate Professor, Human Development and Family Studies, Auburn University

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Cooling Off Period

Door to door sales people can save you time, energy, and sometimes money. But sometimes they can be bad news. Have you ever been talked into buying something that you did not want, simply to make a sales person leave?

Have you ever wished that there were a law? Well, now there is. Alabama's Cooling Off Law (Alabama Consumer Credit Act) gives you time to think about contracts you have signed under pressure and a chance to change your mind.

On certain contracts you have three business days to cancel. You can cancel contracts if the visit by the sales person was not scheduled ahead of time and the sale was:

• A cash sale of $25 or more.
• A credit sale of any amount.
• Any amount if your home was used as security on the contract.

To Cancel

If you decide to cancel, follow these steps:

• Read the Notice of Cancellation the sales person gave you.
• Take off, sign, and date the Notice of Cancellation.
• Send or take one copy of the Notice of Cancellation to the seller. You must do this within three business days after the sale. If you mail the notice, send it by registered mail and keep receipts for your records.
• Keep a copy of the Notice of Cancellation and your copy of the contract or receipt. It is very important that these records be dated and that you keep the copies.
• You must have the item ready to be returned. The item must be in the same condition as you received it.

Seller Must

When you cancel a contract, the seller must, within 10 days after getting your Notice of Cancellation:

• Refund the money you have paid.
• Return any items or property you may have traded in on the contract.
• Cancel and return any papers that you signed.
• Tell you if any item left with you will be picked up or if you can keep it.

Within 40 days the seller must:

• Pick up any item left with you.
• Pay for the shipping costs if you agree to ship the items.

Contracts Not Covered By This Law

Certain types of contracts are not covered by this law. These include:

• Cash sales under $25.00.
• Orders made at the salesperson's home.
• Sales made at seller's place of business.
• Telephone orders.
• Sales made by mail order.
• Some emergency repair sales or other contracts you signed in which you gave up your right to cancel.
• Real estate, insurance, or security sales.

Covered Sales Contracts

For any contract covered by this law, the sales person must:

• Tell you that you have the right to cancel the sale.
• Give you two copies of the Notice of Cancellation form.
• Give you a contract or receipt of what you agreed to buy.

This contract must:

• Be in the same language used during the sale (example: If the salesperson spoke in Spanish, the contract must be in Spanish).
• Be dated and show the name and address of the salesperson.
• Have this statement near where you sign: "You the buyer, may cancel this sale at any time before midnight of the third business day after the sale. See the Notice of Cancellation form for an explanation of your rights."

Complaints Or Suggestions

For more information on this ruling or to report complaints, write to:

or to: