Notice of Cancellation

Just about every state has a Notice of Cancellation requirement for

consumer contracts. We have posted all of the state requirements on our web

site at:

You are not exempt from compliance. If you are selling to home owners you

must comply. Look at your contracts right now and compare your cancellation

notice at the bottom of the contract, and the form notice of cancellation.

If you are not in compliance then you should revise your contracts

immediately. Failure to comply is in most instances considered deceptive

trade practice, subjecting you to prosecution and civil penalties.

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Keep in mind that the cancellation requirements are in effect in every

state. If your state has not enacted a statute then you are covered by the

federal requirement. Some states have a statute that refers to the federal

form of notice.

There are 3 things I want to bring to your attention:

1. The Notice of Cancellation is always located just above the subscriber's

signature. It must be in the precise type size and usually the precise

language required by the statute.

2. In addition to the notice of cancellation on the contract you must have

a separate form for the actual cancellation. This form also must be in the

precise type size and language required by your statute. In my contracts I

suggest that you have this form made in triplicate and that you have the

subscriber initial a copy for you to retain at the time the contract is

signed which will be your proof that you provided the form.

3. You must familiarize yourself with the cancellation terms in your state.

They are different state by state. The cancellation notice advises your

subscribers of their rights, and their obligations. You should know what

your obligations and rights are as well. Carefully reading the cancellation

form will usually spell out your, and your subscriber's, respective rights

and obligations. Take a moment and read the provisions of the statute.

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