The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 083 : Debt Adjusters

• § 2759a. Rescission

  (a) Debtor’s right to cancel.

  (1) In addition to any other right to revoke the contract, the debtor may cancel the debt adjustment contract until midnight of the third business day after the date on which the debtor signed the debt adjustment contract.

  (2) Cancellation occurs when notice of cancellation is given to the licensee.

  (3) Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid.

  (4) Notice of cancellation need not take any prescribed form and shall be sufficient if it indicates the intention of the debtor not to be bound.

  (b) Disclosure obligations.

  (1) The licensee shall furnish the debtor with a fully completed copy of the contract at the time the debtor signs the debt adjustment contract. The copy of the contract shall show the date of the debt adjustment contract, shall contain the name and address of the licensee, and in immediate proximity to the space reserved in the contract for the signature of the debtor and in boldface type of a minimum size of 10 points, a statement in substantially the following form:

  You may cancel this transaction at any time prior to midnight of the third business day after the date of this contract. See the attached notice of cancellation for an explanation of this right.

  (2) The licensee shall furnish a notice of cancellation to the debtor at the time the debtor signs the debt adjustment contract, which notice shall be attached to the contract and shall be easily detachable.

  (A) The notice of cancellation shall contain the following information and statements, printed in not less than 10 point boldface type:

  NOTICE OF CANCELLATION

  (enter date of transaction)

  .................................................

  (date)

  You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

  If you cancel, any payments made by you under the contract will be returned within 10 business days following our receipt of your cancellation notice.

  To cancel the debt adjustment contract, return a signed and dated copy of this cancellation notice or any other written notice, using first-class mail or e-mail, to ............................................. at

  (name of licensee)

  .........................................

  (address of licensee’s place of business)

  (e-mail address of licensee)

  not later than midnight of .......................................................

  (date)

  I hereby cancel this transaction.

  .......................

  (date)

  .................................

  (debtor’s signature)

  (B) Before furnishing copies of the “Notice of Cancellation” to the debtor, the licensee shall complete both copies by entering the name of the licensee, the address of the licensee’s place of business, the date of the contract, and the date, not earlier than the third business day following the date of the transaction, by which the debtor may give notice of cancellation.

  (C) The licensee shall leave the “Notice of Cancellation” with the debtor.

  (D) In addition to the written notice of cancellation, the licensee shall orally inform the debtor of his or her right to cancel at the time of the debt adjustment contract.

  (3) Until the licensee has complied with this subsection, the debtor may cancel the debt adjustment contract by notifying the licensee in any manner and by any means of the debtor’s intention to cancel. The cancellation period of three business days shall begin to run from the time the licensee complies with this subsection.

  (c) Restoration of payments. Within 10 days after the debt adjustment contract has been cancelled, the licensee shall tender to the debtor any payments made by the debtor.

  (d) If the debt adjustment contract is principally negotiated in a language other than English, all of the disclosures required by this section shall be given in that language.

  (e) If the debtor is unable to write in his or her own handwriting, any of the statements required to be written by the debtor under this section shall be handwritten by a member of the debtor’s household at the request of the debtor. If there is no other member of the debtor’s household, such statements must be written by the licensee, at the request of the debtor, and the effect of such statements shall be orally explained to the debtor by the licensee.

  (f) Use of the cancellation provision provided for in this section shall not prevent any other action being taken under this chapter or otherwise against such licensee. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3; 2023, No. 32, § 4, eff. July 1, 2023.)