changed mind on new car purchase
Question: I would also encourage anybody operating on the “three days law” concept to *verify the existence and relevance of such a law* before proceeding on the assumption that you can return the car.
Answer: Yes, there seems to be a pervasive myth out there that people have three days to back out of ANY contracts. Upon further inspection, the laws always turn out to be less generous than believed.
It varies by state, but in general only two types of contracts are covered by these laws:
1. Any loan secured by your owned residence (and in NC I believe it only applies if the loan is secured by your *current* owned residence which is why when you do a refi or home equity loan, many banks won’t cut the check until 3 business days after closing, it also means if you are buying a new house it isn’t your current owned residence when you close so the 3 days cooling off does NOT apply to acquiring a residence!).
2. Any contract signed IN YOUR HOME (i.e., a door-to-door sales deal).
Cars do not apply! Health club contracts do not apply! Etc! Know your law before signing these things. Unfortunately the 3-day recission is meant to protect the very same ignorant people who won’t know what kinds of contracts it applies to.
Also, most of these laws require that when a contract subject to 3-day recission is signed, that the party you are contracting with give you a pre-filled out revokation form to use, with the deadline clearly printed on it. If you didn’t get one of those forms at contract signing, you probably don’t have a 3-day cooling off period!
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Filed under: Home Equity Loan
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