Cooling Off Period

If you just purchased a timeshare and have come to realize that it may have been a mistake, you may have some recourse under Federal “cooling-off” rules. These rules were put in place specifically for purchases such as timeshares that often are sold with high pressure tactics.

The way that cooling-off rules work is as follows: A consumer in some instances can cancel a contract after up until a specified number of days after making certain purchases under a contract and get their money back. As mentioned before, these laws were enacted to fight high pressure and deceptive sale tactics. The cooling-off period law will tell you how much time you have to cancel after signing the contract and what steps you must take in order to cancel.

All people are covered by the Federal level cooling off rules and give everyone certain minimum rights. In addition, individual states often have their own cooling-off rules. These can vary widely from state to state, but most give additional additional protection or more liberal rights beyond the Federal law.

Basically, the Federal cooling-off period law allows a customer three days to cancel purchases worth $25 or more if the item was purchased at your home, workplace or dormitory, or at temporary facilities (for example, hotel or motel rooms, convention centers, fairgrounds and restaurants). The cooling-off period law also applies when you invite a salesperson to make a presentation at your home.

There are some exceptions to the federal cooling-off rules. To get more information on these and how to go about cancelling a contract, you can visit the Federal Trade Commission Site.