Contract canceled too late for refund

Contract was canceled too late to be eligible for a refund

Q: I signed up with Resqline Inc. for crime prevention services on April 9. My Visa was charged $1,101.03 for the services. I didn't realize the high costs and add-ons involved with the contract, including an additional $61.14 for a service activation.

I read the "Buyers Right to Cancel" section of the contract, which said a written request for cancellation had to be postmarked no later than three days after purchase.

I canceled the agreement on April 10 with a written letter, mailed to the address provided on the contract.

I would like a refund, and I also would like them to pick up their equipment.

I hope you can resolve this problem for me.

Shirley C. Prince

A: Unfortunately, we can't.

Rich Contino, office manager at Resqline, sent a copy of the envelope you sent by certified mail. It was dated April 21, 2009, 12 days after your purchase and well outside of the cancellation deadline.

The Federal Trade Commission's Cooling-Off Rule gives a consumer three days to return a purchase of $25 or more if the sale is made in your home, workplace or dormitory.

"Under the Cooling-Off Rule, your right to cancel for a full refund extends until midnight of the third business day after the sale," according to the FTC.

The cooling-off rule also applies to a sale made in a business facility that is rented by the seller on a temporary or short-term basis, such as hotels, convention centers, fairgrounds and restaurants. The rule applies if you invite a salesperson to your home, but not if there have been prior negotiations at the seller's permanent business address where goods are sold regularly. You also waive your right to a "cooling-off" period if the sale is made to render personal property maintenance or repair services from the seller. The same goes if the sale is made in light of an emergency; for example, if you discover a sudden insect infestation in your home.

The salesperson must inform you of your cancellation rights at the time of purchase. The contract or receipt should be dated, with the name and address of the seller, and it must explain your right to cancel. It's also required that the contract or receipt is in the same language in which the sale was made.

If you decide to cancel, there are steps the FTC suggests to ensure you are covered by the law.

On some occasions the seller will provide a cancellation form to you, and on others you will have to write one out yourself. In order to have documentation of your cancellation, send it by certified mail, return receipt requested. Be sure to have it postmarked before midnight of the third business day after purchase. Saturdays are considered a business day, while Sundays and federal holidays are not.

If you cancel, the seller has 10 days to return any promissory note or other negotiable instrument you signed, refund all your money and return any trade in involved with the purchase.

For more information, call the FTC Consumer Response Center toll-free at 1-800-382-4357 or visit www.ftc.gov/bcp/edu/pubs/consumer/ products/pro03.shtm. You can also file a complaint by calling the Florida Department of Agriculture and Consumer Services toll-free at 1-800-435-7352.