3 Day Recission Rule

I entered into a contract for a 42 day exercise and diet program on 4/9 for $1500. On 4/11 due to unforseen circumstances I cannot afford to do this program right now so I went to the gym to cancel my contract which said that you had 3 days to cancel but no one was there. I reached the guy that I signed up with and told him I was sorry but I had to get out of the program but would like to try the next time which is in Sept. Well he tells me that since I went to a nutrition and kick-off session, both 1 hr in length that I am liable for $549 but since they like me they are only going to charge me $349! I don't think the check has been cashed yet and I'm going to the bank at 8 am Monday morning to put a stop payment on it but am wondering what my recourse is if the the has already cleared? I would have agreed to pay maybe $100 but now I'm so mad I don't want to pay a dime! There is nothing on the contract that I signed that says I would owe anything if I backed out in 3 days. Can anyone advise me? Thanks!

A right of rescission should not be dependent on a single hour of class. If the total amount is only $350 or so, you can go to small claims court and show the judge the contract and the dates which should allow you to rescind the entire contract. That could cost you between $75 to $150 if you represent yourself. If you are successful in getting the check stopped, you don't need to do this unless they sue YOU... then THEY get to pay the small claims court.

Good luck.

First of all, this three day rule varies from state to state. So, without knowing what state you are in, it is impossible to accurately pinpoint the law of YOUR state (i.e. the laws governing THIS transaction).

Additionally, in many states, the notice must be in writing. Again, since you do not specify your state, it is impossible to say precisely if that is indeed the case. But in many jurisdictions it is.

Also, many contracts can not be rescinded due to inadequate consideration. This means that "I decided I couldn't afford it" may not be grounds for rescinding the contract.

Mere inadequacy of consideration is not a sufficient reason to justify rescission.US CODE: Title 15,1635. Right of rescission as to certain transactions

Most contracts that have a set number of days to rescind the contract do NOT have any requirement for it passing THEIR reasonability test. It is an unbounded part of the contract... they have no option but to accept your decision. Perhaps it is true that it has to be in writing, but it seems to me that when you show up in person and are denied, you have a case you can prove in court.

As for a standard right of rescission, that is only in contracts to purchase a home. Not what Poster has in this case... which happens to be a contract with terms including a three day right of rescission with no other requirements. Poster needs to document who was contacted in person, who was contacted in whatever method used and the dates.

Stop that check.

I am not even going to guess what "unbounded" means. Unbound? What is an UNBOUND contract? The two terms are opposite one from the other. Contract is an agreement, unbound implies no agreement. What in the world are you talking about? Do you even know or do you make it up as you go along? Wait.........nevermind. I already know.

I am not sure what you mean by reasonability test. Are you referring to this law about inadequate consideration?

Silly me! Of course you are right and the law is wrong.

US CODE: Title 15,1635. Right of rescission as to certain transactions

Actually, read it. Like it or not, agree with it or not, it is what it is---without regard to you or your opinions. * shrug *

It means that for the first three days there IS NO BINDING CONTRACT.

Did you READ your researched law? It refers only to contracts for purchasing a person's RESIDENCE... exactly as I stated... the ONLY 3 day stop to a contract that is written into our federal laws and copied into MOST state laws. Your research proves my point.

You contradicted yourself completely. Read your two statements.

Then read the link. In the first paragraph, these words appear: of any consumer credit transaction

Im going to guess that ANY CONSUMER CREDIT TRANSACTION includes OTHER things BESIDES mortgages.