3 day cooling off period

Our home still has the original windows in it with metal frames. It lets in a lot of heat in the summer, and a lot of cold in the winter. They are single-pane and incredibly inefficient, so we have been in the market for new windows.

We’ve had two door-to-door salespeople come by offering to do a quote. The first guy wanted 2.5 hours for the appointment, and never would give us an estimate until he looked at every window and pointed out all the problems (tip for that type of salesperson – we know we need all new windows, you don’t need to spend 10 minutes analyzing each one!). The second guy was really nice, but we fell for a marketing ploy. “We don’t do any type of advertising. In a 3-square mile area we pick two homes and you become our marketing home. We put a sign up in your yard for 60 days and direct people to look at your windows. For that, we give you a big discount.” He sold us on the virtuous of their 3-pane windows and lifetime warranty. (It turns out, by the way, that you don’t need 3-pane windows unless you live in a really cold or hot place.)

We needed new windows, so we decided to take the plunge and put 20% down and signed the contract. The windows would take about 8-weeks because they special order them for your home.

The salesman gave us a bunch of paperwork and we set it aside since this was just before Christmas. Christmas and New Years came and went and we started doing some research (well, asking friends on Facebook. That counts as research, right?). It turns out that those who had new windows put in paid about half of what we paid. We decided to get out of the contract. However, just above where we signed it said this:

“YOU, THE BUYER, MAY CANCEL THIS TRANSACTION BY DELIVERING WRITTEN NOTICE TO THE SELLER AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION.”

Oops….we were well past the third business day, but I figured I would contact the seller anyway since they hadn’t done any work yet and the windows hadn’t been ordered. I e-mailed the salesman and his regional manager and got an e-mail back basically saying, “Tough luck. You signed the contract and we’re going to make you stick to it.” We went back and forth – “do you really want your marketing home to be an unhappy customer? Let’s look at doing something different – maybe double-pane windows instead.” They basically said, “No, you are beyond the third business day. We’re holding you to it.”

I decided to do some actual research, though, to see if there was any way out of the contract. I first went to the Federal Trade Commission’s website and found an article about the FTC’s cooling off rule (http://www.consumer.ftc.gov/articles/0176-buyers-remorse-when-ftcs-cooling-rule-may-help). It basically says that as long as the sale was over $25 and not at the seller’s place of business the seller has to do three things:

1. The seller must tell you about your right to cancel at the time of sale
2. The seller also must give you two copies of a cancellation form (one to keep and one to send if you decide to cancel your purchase) and a copy of your contract or receipt
3. The contract or receipt should be dated, show the name and address of the seller, and explain your right to cancel

The seller had done two and three, but not the first one – he neglected to tell us about it. I sent the article to the regional manager and he said, “You are beyond the third day, but I’ll check with the company owner. You’re not getting out of this contract. We had a Utah lawyer write the contract and it complies with Utah law in all matters.”

While I was waiting for him, I did more research. I went to the Utah Division of Consumer Protection website (http://www.consumerprotection.utah.gov/) and it turns out that Utah law (http://www.rules.utah.gov/publicat/code/r152/r152-11.htm) states:

(a) The notice required shall:
(i) be a conspicuous statement written in dark bold with at least 12-point type on the first page of the purchase documentation; and
(ii) read as follows: “YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS LATER.”

I had something here – their contract neglected the words “OR RECEIPT OF THE PRODUCT, WHICHEVER IS LATER.” I called an investigator with the Utah Division of Consumer Protection Services, explained the situation and asked if “receipt of the product” is a receipt like you get at a store or physical receipt of the product. She confirmed it is physical receipt of the product. She said the company was in violation of Utah law because their contract didn’t have that provision on it and that we were entitled to a full refund until the windows are installed. She also said that she was going to investigate the company to be sure they add that to their contract, and that if they didn’t promptly refund the money her office would take over and get it back.

I sent this all in an e-mail to the company and shortly thereafter got a phone call from the regional manager. “Of course it’s no problem. We’re going to let you out of your contract and as a thank-you for helping us realize we didn’t have the correct wording on there we’re willing to take $2,000 off double-pane windows if you would like to do that.”

We aren’t taking them up on the offer.

We learned some important things:

1. We’re putting up a no soliciting sign. I know this won’t stop all salespeople, but it will help. In general, door-to-door salespeople use high pressure tactics and count on you not being able to do any research. They will have slick advertisements and endorsements convincing you to take action now. Our sign will say that youth are welcome to knock. After all, we still want some Girl Scout cookies =)

2. It pays to do your research. If you are in Utah you have until the physical receipt of the product to cancel. If you live outside of Utah check your own state’s rules (if you find it for your state, please put it in the comments below).

3. Don’t sign a contract without reading it in full.

4. Do some comparison shopping before you sign a contract.

5. Don’t be pressured by “you get 15% off, but only if you sign today” or “we only need one more marketing home in your area.” They know that three days is too short to really do any comparison shopping, so they will try to pressure  you to buy that day. Inform them that you are going to comparison shop and you aren’t worried about not getting the best price from them today. If you decide to go with the company insist they give you the discount they were going to give you that day.

6. Talk to your friends – Facebook is a great start – about companies they used and if they liked or didn’t like them. We have since received several referrals for window companies and will likely go with one of them.

We almost had to learn a really expensive lesson, but we will be sure to follow all of these from this point forward.

Remember, if you find your state’s rules, please post them in the comments below.

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Comments Icon2 comments found on “3 day cooling off period

  1. IDAHO
    Turns out that Idaho isn’t as consumer friendly as Utah. Here are their rules:
    http://www.ag.idaho.gov/publications/consumer/ConsumerProtectionManual.pdf

    On page 36 it talks about door-to-door sales:
    “salesperson is required to furnish you with written notification that you have a three-working-day grace period in which to cancel the purchase. The salesperson should give you a contract or receipt for your purchase and two copies of the Notice of Cancellation form. You may cancel your purchase by signing and dating one copy of the form and mailing or delivering it to the seller within the three-day period.”

    It’s basically the same as the federal law.

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