Defcon1
newbie
I just wanted to throw my comments in about the right to cancel and how it works. I have been a Banker for 25 years dealing with rescission. What I am about to add here pertains to purchases in the US. This is geared to newer people who maybe don't know how this works.
Congress passed legislation that was designed to give folks a little cooling off period - or some time to change their mind after signing something like a home refinance or a timeshare purchase. The law was called Truth in Lending and it covers many many aspects of consumer credit transactions including a buyers right to cancel certain types of transactions. The Truth In Lending Act implementation was delegated by congress to the Federal Reserve to write the actual regulations from the Truth In Lending legislation. The Federal Reserve called these regulations "Reg Z" hence you'll often hear about reg z disclosures when you are involved with a consumer type credit transaction. Reg Z also defines how rescission works.
The rules are in determining your cooling off period are very simple. If you follow these rules, you will be covered 100% of the time. Reg Z says that you must be given 3 days as your rescission period. The three days (1) do not include the day you sign (2) exclude public holidays and (3) exclude Sundays. Often there is confusion about Saturday and whether it is a rescission day. Under Reg Z, Saturday counts as a valid rescission day whether or not the company is open for business. It's a business decision whether the company wants to include it or but the law says Saturdays count.
So for example, you sign on a Thursday. Your rescission days UNDER REG Z would be Friday, Saturday and Monday whether the company is open or not. Your period ends midnight on Monday night. At 12:01 am Tuesday morning, you are out of rescission. Now if the company does not consider Saturday a valid rescission day, you'd just have one additional day to the rescission period. It's in your favor so no harm. In the above example, assume Monday is a public holiday. Then your rescission period would be Friday, Saturday and Tuesday (Sundays and public holidays are excluded). Your rescission would end Tuesday at midnight. On Wednesday 12:01 am you are through rescission.
The consequences to not giving you a valid rescission are this: if a court of law / jury were to determine you were not provided a proper rescission period, you are allowed to rescind the contract at anytime up to the time you are provided a a proper three day rescission. So if you prove you did not have a valid rescission say six months or a year out, you can rescind and get all your money back. If you are provided a recsission and you sign saying you had your three days even if the recsission took place six month later, you'd no longer be able to rescind for not getting valid rescission period. The acid test a court will use if the rescission notice is disputed is to look at what day the trust deed was notarized and what day the deed recorded. If the deed recorded before the three days were up regardless of the rescission notice, you'd likely be able to rescind. The law was designed to give people three days. It's in defensible if they record the deed before your rescission is up. If you sign and they record prematurely, you can get out of it. Mailing their rescission notice during the the rescission period is deemed a valid rescission. If you need to do it, I'd send a copy regular mail and a second copy registered. Keep copies of the evelope showing the address and postage affixed and it would be hard for them to deny they didn't get either. The reason I'd send one regular mail is they may refuse to sign for the registered letter as a delaying tactic.
The rescission period in not waivable except in the case of an bonefide emergency. Most companys will not waive the three day period for fear a people will later contend they did not a get a valid three day waiting period even though they said it was an emergency. I doubt buying a vacation TS would ever fall into that category. TS's many have longer periods I don't know but the above guidelines are Federal minimums. Since they are federal regs they apply in all states.:whoopie:
Congress passed legislation that was designed to give folks a little cooling off period - or some time to change their mind after signing something like a home refinance or a timeshare purchase. The law was called Truth in Lending and it covers many many aspects of consumer credit transactions including a buyers right to cancel certain types of transactions. The Truth In Lending Act implementation was delegated by congress to the Federal Reserve to write the actual regulations from the Truth In Lending legislation. The Federal Reserve called these regulations "Reg Z" hence you'll often hear about reg z disclosures when you are involved with a consumer type credit transaction. Reg Z also defines how rescission works.
The rules are in determining your cooling off period are very simple. If you follow these rules, you will be covered 100% of the time. Reg Z says that you must be given 3 days as your rescission period. The three days (1) do not include the day you sign (2) exclude public holidays and (3) exclude Sundays. Often there is confusion about Saturday and whether it is a rescission day. Under Reg Z, Saturday counts as a valid rescission day whether or not the company is open for business. It's a business decision whether the company wants to include it or but the law says Saturdays count.
So for example, you sign on a Thursday. Your rescission days UNDER REG Z would be Friday, Saturday and Monday whether the company is open or not. Your period ends midnight on Monday night. At 12:01 am Tuesday morning, you are out of rescission. Now if the company does not consider Saturday a valid rescission day, you'd just have one additional day to the rescission period. It's in your favor so no harm. In the above example, assume Monday is a public holiday. Then your rescission period would be Friday, Saturday and Tuesday (Sundays and public holidays are excluded). Your rescission would end Tuesday at midnight. On Wednesday 12:01 am you are through rescission.
The consequences to not giving you a valid rescission are this: if a court of law / jury were to determine you were not provided a proper rescission period, you are allowed to rescind the contract at anytime up to the time you are provided a a proper three day rescission. So if you prove you did not have a valid rescission say six months or a year out, you can rescind and get all your money back. If you are provided a recsission and you sign saying you had your three days even if the recsission took place six month later, you'd no longer be able to rescind for not getting valid rescission period. The acid test a court will use if the rescission notice is disputed is to look at what day the trust deed was notarized and what day the deed recorded. If the deed recorded before the three days were up regardless of the rescission notice, you'd likely be able to rescind. The law was designed to give people three days. It's in defensible if they record the deed before your rescission is up. If you sign and they record prematurely, you can get out of it. Mailing their rescission notice during the the rescission period is deemed a valid rescission. If you need to do it, I'd send a copy regular mail and a second copy registered. Keep copies of the evelope showing the address and postage affixed and it would be hard for them to deny they didn't get either. The reason I'd send one regular mail is they may refuse to sign for the registered letter as a delaying tactic.
The rescission period in not waivable except in the case of an bonefide emergency. Most companys will not waive the three day period for fear a people will later contend they did not a get a valid three day waiting period even though they said it was an emergency. I doubt buying a vacation TS would ever fall into that category. TS's many have longer periods I don't know but the above guidelines are Federal minimums. Since they are federal regs they apply in all states.:whoopie:
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