CONSUMER ALERT

When NH consumers have right to cancel a purchase of goods, service

Submitted by Harold Moldoff

This is another in a monthly Rye Reflections series of public-service columns.  The listing provided here was compiled by staff of the New Hampshire Bureau of Consumer Protection and Charitable Trusts unit.

Q. Do New Hampshire Consumers have a right to cancel a sale after the fact?

A. New Hampshire consumers are often under the mistaken impression that they are protected by a state law that provides them with a right of rescission, or cooling off period, after they enter into a sales contract for the purchase of goods or services.  New Hampshire does not have a law that protects consumers by providing a rescission period on retail purchases; however, there are a few limited transactions that are subject to a right of cancellation.

Door-to-door sales RSA Chapter 361-B:2. Consumers are entitled to cancel a transaction up to three business days from the date of the transaction if a purchase is made from a door-to-door salesman.  Both the Federal Trade Commission (FTC) and New Hampshire Statute RSA 361-B:2 allow consumers a "cooling off" period when they purchase goods or services worth more than $25 from a place other than the seller's permanent place of business.  This may include flea markets, roadside stands, hotel conference rooms, country fairs.  The seller must give the buyer either a written receipt or written contract outlining the right to rescind the purchase, and the writing must be in the same language in which the sale was made.  The buyer must receive the following information in a home solicitation contract:: the seller's name and place of business; the date of the transaction; a description of the goods and/or services purchased; the amount of money paid and the value of the goods/services delivered; and a description of the right to rescind, including the following statement: ANY BUYER MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. Reference membership to a health club or martial arts club: RSA Chapter 358-1:3.  Every purchaser of a prepaid membership shall be entitled to cancel his or her contract within three business days by notifying the health club in writing by midnight of the third business day following the date of purchase of the membership contract.  Written notification is deemed given if postmarked or delivered by midnight of the third business day.

Credit repair service RSA Chapter 359-D:6. All credit service organization contracts must contain an explicit statement (printed in at least 10-point boldface type and positioned next to or above the customer's signature line) of the customer's unqualified right to cancel the contract within five business days after signing.  The contract must also be accompanied by a preprinted, multipart "Notice of Cancellation" which the consumer may use to exercise this right.

Timeshares, Condominiums, Subdivisions RSA Chapters 356-A:4 and 356-B:50. Buyers of timeshares, condominiums of more than 10 units, or lots in a subdivision of 50 lots or more, who enter into a purchase and sale agreement, have an unqualified right to cancel the agreement within five calendar days from the date of disposition, or the delivery of the current public offering statement, whichever is later.  Such cancellation shall be without penalty, and any deposit made by the purchaser shall be refunded in its entirety no later than 10 days from the receipt of the notice of cancellation.

Credit transactions involving a security interest in your home.  The Federal Truth In Lending Act (TILA) provides an absolute right to rescind credit transactions involving a security interest in your home, such as a second mortgage, home equity line of credit, a refinance of a primary residence or home improvement mortgage.  The consumer may cancel the "transaction until midnight of the third business day after receiving notice or signing the documents, whichever is later,  without incurring any liability".

The Consumer Protection and Antitrust Bureau of the New Hampshire Attorney General protects consumers against unfair or deceptive trade practices, in the State of New Hampshire.  If you think you have been denied your statutory right to cancel a transaction in any of the above circumstances, contact our office by mail at 33 Capitol street,, Concord, NH 03301; by. telephone at 1-603-271-3641 or toll free: at 1-888-468-4454; or log on to our website at ww.doj.nh.gov and download a consumer complaint form.

(Harold Moldoff is a volunteer Consumer Affairs Specialist with Bureau of Consumer Protection and Antitrust, in Concord, N.H.  He is a resident of Rye Beach.)


February, 2006