The Center For Debt Management
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TITLE 15–COMMERCE AND TRADE

CHAPTER 41–CONSUMER CREDIT PROTECTION

Sub Chapter&nbspII-A –Credit Repair Organizations

Sec. 1679e. Right to cancel contract
(a) In general

    Any consumer may cancel any contract with any credit repair 
organization without penalty or obligation by notifying the credit 
repair organization of the consumer's intention to do so at any time 
before midnight of the 3rd business day which begins after the date on 
which the contract or agreement between the consumer and the credit 
repair organization is executed or would, but for this subsection, 
become enforceable against the parties.

(b) Cancellation form and other information

    Each contract shall be accompanied by a form, in duplicate, which 
has the heading ``Notice of Cancellation'' and contains in bold face 
type the following statement:
        ``You may cancel this contract, without any penalty or 
    obligation, at any time before midnight of the 3rd day which begins 
    after the date the contract is signed by you.
        ``To cancel this contract, mail or deliver a signed, dated copy 
    of this cancellation notice, or any other written notice to [ name 
    of credit repair organization ] at [ address of credit repair 
    organization ] before midnight on [ date ]
        ``I hereby cancel this transaction,
        [ date ]
        [ purchaser's signature ].''.

(c) Consumer copy of contract required

    Any consumer who enters into any contract with any credit repair 
organization shall be given, by the organization--
        (1) a copy of the completed contract and the disclosure 
    statement required under section 1679c of this title; and
        (2) a copy of any other document the credit repair organization 
    requires the consumer to sign,

at the time the contract or the other document is signed.

(Pub. L. 90-321, title IV, Sec. 407, as added Pub. L. 104-208, div. A, 
title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-459.)

 Prior Provisions

    For a prior section 407 of Pub. L. 90-321, see note set out under 
section 1679 of this title.

          
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