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If you’ve ever had “buyer’s remorse,” this article is for you! We have all made purchase decisions in the heat of the moment and regretted them later. Fortunately, Indiana consumer laws provide specific cancellation periods for several types of contracts between individuals and businesses.
Indiana Contract Cancellation Periods
3-day cancellation period:
- Sales costing over $25.00 occurring in your home or away from the seller’s permanent place of business (“door-to-door" sales)
- Health spa contracts
- Credit repair and debt purchase contracts
- Home improvement
- Timeshares and camping clubs
7-day cancellation period:
- Foreclosure consultant contracts
- Foreclosure reconveyance agreements
30-day cancellation period:
- Business opportunities, such as “work at home” jobs costing the consumer between $500-$50,000
90-day cancellation period:
- Telephone solicitations where the consumer does not receive the purchased item within 4 weeks of purchase
- No Reason Required: When you exercise your right to cancel, you don’t need a reason. Just make sure you do it within the allowed time period. Don’t let the salesperson talk you into taking more time if you know you want to cancel.
- Cancellation must be in writing: The cancellation must be signed, dated and delivered to the seller by midnight of the 3rd day after the contract is signed. You can either deliver the signed cancellation in person or send it through the mail; it must be postmarked within the cancellation period.
- Seller must return payments made within 10-30 days of cancellation. Depending on the type of contract, the seller has either 10 or 30 days under Indiana law to return your payment.
- If you were given merchandise or under the contract you must return it. You do not have to return it at the same time you cancel but it must be returned within a reasonable time. If work such as home improvements were completed under a contract, the value of the work is subtracted from any refund.
- Unsolicited merchandise can be returned or kept as a gift. If a seller sends an item you did not request, you do not have to pay for it. You may choose whether to keep it or return it.
What If I Missed a Deadline to Cancel a Contract in Indiana?
You might still have a way to cancel. Indiana Deceptive Consumer Sales Act (IC 25-5-0.5 et seq.) prohibits “unfair, abusive, deceptive act, omission, or practice” before, during or after a transaction. The statute also sets out requirements for certain consumer contracts, including a detailed notice of the cancellation policy. A contract may be voidable if they don’t comply with Indiana requirements. Contact an attorney if you want to know more.