Wait — I Can Do That? | Ep. 15: Cancel a Contract You Signed at Home Within 3 Business Days

The solar salesman packed up his sample case an hour ago. You signed at the kitchen table, the number has five figures, and by the time his car leaves the driveway you already know you moved too fast.

Federal law gives you until midnight of the third business day to change your mind. 1

The rule covers a sale of $25 or more that a seller solicits and you sign at your home, and $130 or more at your workplace or dormitory, or at a seller's temporary location such as a hotel room or a convention center. The deadline is midnight of the third business day after the sale. Saturday counts as a business day; Sunday and federal holidays do not. No reason is required. 2

The seller had to tell you about the right when you signed and hand you two copies of a cancellation form. 1 Sign and date one copy and mail it before the deadline. If the seller never gave you the forms, a signed letter with the same information does the same job. Send it certified and keep a copy, because the postmark is what proves you were inside the window. 2

A deal you closed at the seller's permanent store after negotiating there sits outside the rule, and so does a purchase made entirely online, by mail or by telephone. Real estate, insurance and securities are outside it too. 1 State law can give you longer than three business days, so check your own state before the deadline passes. 2

The words to send, in writing:

Once the seller receives a valid notice, it has ten business days to refund every payment you made, return anything you traded in, and cancel any finance agreement. 1 If it does not, report the seller to the FTC at ReportFraud.ftc.gov and to your state attorney general. 2

Verify with a professional for your jurisdiction.