How to Cancel a Purchase Agreement

Buying a product is easy to do. Exercise care when making purchases to know your rights as a consumer if you need to return the items for whatever reasons. Take the time to read the fine print prior to making the purchase and ask questions if you're unsure about a company's return policy. Follow these guidelines when you decide to cancel a purchase agreement.

Instructions

Difficulty: Moderate

1. Decide within 3 business days if you want to cancel a purchase agreement of any item with a value of $25 or more. This is the period you have according to the Federal Trade Commission. Your right to cancel the agreement and get a complete refund expires after the third business day.
2. Review the copy of the cancellation papers that you should have received after the sale to determine what specific address and mailing instructions they require for voiding a sale.
3. Sign and date the form provided for cancelling the purchase agreement. When mailing the form, make sure that the date stamped by the post office is prior to the end of the third business day. Personally deliver it if you must or send it certified delivery.
4. Maintain the item in the same condition it was in when you bought it. If you are required to return the item in person or by mail, do so within the designated period. The purchase agreement is not cancelled until you do this.
5. Review your credit card account ledger over the next billing cycle if you paid by credit card to ensure proper credit is given.

Tips & Warnings

• Keep a copy of the cancellation form in your personal files.
• If you did not receive a cancellation form, write your own letter. Include all names and dates and a copy of the receipt for the item purchased.
• Returning an item that was purchased in the place of business will vary according to that company's policy. They are not required by law to accept any returns or cancel any agreements.
• Saturday is considered a business day when cancelling a purchase agreement.
• Do cancel a purchase agreement over the phone. It will not be binding in court.