How to Rescind an Agreement within 72 Hours
United States federal law allows for a right of rescission for selected types of commercial transactions or agreements. This right -- often referred to as a "cooling off period" -- generally applies only to certain types of credit transactions when a security interest is given in the consumer's principal dwelling or to door-to-door sale agreements. State laws may afford additional rights that apply to other transactions or agreements. To exercise your right of rescission you must follow the proper steps.
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Instructions
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Establish that the agreement you wish to rescind is covered under federal or state law. The applicable federal regulations can be found in the Code of Federal Regulations. State laws can be found online at your state's official website or at a local library.
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Confirm that you are within the 72-hour rescission period. As a rule, you have until midnight of the third business day after the transaction was consummated. The time frame, however, may be extended up to three years if the lender failed to deliver the required disclosure in the case of a credit transaction involving your primary dwelling.
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Prepare a written notice of your intention to rescind the agreement. The notice should specifically reference the agreement and indicate that you are exercising your right to rescind the agreement. Sign the notice and make a copy for your records.
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Deliver a copy of the notice by mail or telegram to the lender or seller. If you mail the notice you should mail it certified or registered mail for confirmation.
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