How to Cancel DirectBuy Memberships

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DirectBuy is a wholesale home improvement and furniture buying club. It operates more than 150 franchise locations in North America. Members are recruited through a one-on-one appointment presentation-based sales model similar to that used by many vacation time-share companies. Potential members are asked to join at the appointment. If a membership is not purchased, the individual may not join the club for a period of time, usually four years. Membership fees consist of an initiation fee of a few thousand dollars followed by monthly maintenance fees. Many DirectBuy membership contracts do not contain cancellation provisions and canceling a membership can be quite difficult.

Consumer's Cooling-Off Period

  • Examine your DirectBuy contract for a clause that describes an initial "cooling-off" period during which you may cancel your contract. The inclusion of this clause in a DirectBuy membership contract depends on the policies of the franchise you joined through and varies from location to location. If it is present, the cooling-off period is frequently three days and sometimes includes a cancellation penalty of 10 to 15 percent.

  • Consult with your state or province's consumer protection bureau to find out if your state has a "cooling off" period or a "Consumer's Right of Rescission" that will apply to your particular situation. These laws vary from state to state and range from no right of rescission whatsoever to one week during which you may cancel a contract and are guaranteed a full refund by law.

  • Write a letter to the DirectBuy franchise stating your intent to cancel your contract under the provisions of the contract or state law. It should be postmarked within the time period during which a cancellation period is allowed by either your DirectBuy contract or your state or province's consumer protection laws. Send the letter via certified mail and retain the receipt as proof that you sent it within the time period allowed and that it was received by DirectBuy.

  • Follow up by telephone within one to two weeks to ensure that your cancellation request was received and processed, and that any refund required will be paid. If you financed your membership purchase you will need to contact the credit department to ensure that the account is closed and no additional payments will be billed. Follow-up again after 30 days.

Canceling After the Cooling-Off Period

  • Examine your DirectBuy contract for a cancellation clause that is not related to the cooling-off period. Some DirectBuy contracts do not allow for cancellation after the initial period and most impose a penalty or fee for early cancellation.

  • Contact the manager of the DirectBuy franchise if your contract does not contain a cancellation clause or you feel that the cancellation fee is too high. Explain your reasons for canceling. You may be able to negotiate a lower fee or exception to the contract.

  • Send a letter of cancellation via certified mail to the DirectBuy franchise. Include a check for the full amount of the cancellation fee or agreed upon adjustment along with any outstanding balance due.

  • Follow up by telephone after 10 and 30 days after cancellation to ensure that your cancellation has been received and processed. If you financed your membership, contact the credit department to ensure that your account has been closed and no additional bills will be sent.

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  • Photo Credit furniture image by Galyna Andrushko from Fotolia.com firma contract 10509 image by pablo from Fotolia.com
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