407.642. Contract requirements, cancellation clause.
Contract requirements, cancellation clause.
407.642. 1. Each contract between the buyer and a creditservices organization for the purchase of the services of thecredit services organization must be in writing, dated, signed bythe buyer and must include:
(1) A statement in type that is boldfaced, capitalized,underlined, or otherwise set out from surrounding writtenmaterial so as to be conspicuous, in immediate proximity to thespace reserved for the signature of the buyer, as follows:"YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME BEFOREMIDNIGHT OF THE THIRD DAY AFTER THE DATE OF THE TRANSACTION. SEETHE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OFTHIS RIGHT";
(2) The terms and conditions of payment, including thetotal of all payments to be made by the buyer, whether to thecredit services organization or to another person;
(3) A full and detailed description of the services to beperformed by the credit services organization for the buyer,including all guarantees and all promises of full or partialrefunds, and the estimated length of time, not to exceed onehundred eighty days, for performing the services; and
(4) The address of the credit services organization'sprincipal place of business and the name and address of itsregistered agent in the state authorized to receive service ofprocess.
2. The contract must have attached two easily detachablecopies of a notice of cancellation. The notice must be inboldfaced type and in the following form:
"NOTICE OF CANCELLATIONYOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION,WITHIN THREE DAYS AFTER THE DATE THE CONTRACT IS SIGNED. IF YOUCANCEL, ANY PAYMENT MADE BY YOU UNDER THIS CONTRACT WILL BERETURNED WITHIN TEN DAYS AFTER THE DATE OF RECEIPT BY THE SELLEROF YOUR CANCELLATION NOTICE. TO CANCEL THIS CONTRACT, MAIL ORDELIVER A SIGNED DATED COPY OF THIS CANCELLATION NOTICE, OR OTHERWRITTEN NOTICE TO:
(NAME OF SELLER) AT (ADDRESS OF SELLER) (PLACE OF BUSINESS)NOT LATER THAN MIDNIGHT (DATE). I HEREBY CANCEL THISTRANSACTION.
DATE: ..............................
BUYER'S SIGNATURE: ......................................."
3. The credit services organization shall give to the buyera copy of the completed contract and all other documents thecredit services organization requires the buyer to sign at thetime they are signed.
4. The breach by a credit services organization of acontract under this section, or of any obligation arising from acontract under this section, is a violation of sections 407.635to 407.644.
(L. 1991 S.B. 112 § 7)