§ 6-1-1105 — Right of cancellation

(1) In addition to any right of rescission
available under state or federal law, the home owner has the right to cancel a
foreclosure consulting contract at any time.

(2) Cancellation occurs when the home owner gives written notice of
cancellation of the foreclosure consulting contract to the foreclosure consultant at
the address specified in the contract or through any facsimile or electronic mail
address identified in the contract or other materials provided to the home owner by
the foreclosure consultant.

(3) Notice of cancellation, if given by mail, is effective when deposited in the
United States mail, properly addressed, with postage prepaid.

(4) Notice of cancellation need not be in the form provided with the contract
and is effective, however expressed, if it indicates the intention of the home owner
to cancel the foreclosure consulting contract.

(5) As part of the cancellation of a foreclosure consulting contract, the home
owner shall repay, within sixty days after the date of cancellation, all funds paid or
advanced in good faith prior to the receipt of notice of cancellation by the
foreclosure consultant or associate under the terms of the foreclosure consulting
contract, together with interest at the prime rate published by the federal reserve
plus two percentage points, with the total interest rate not to exceed eight percent
per year, from the date of expenditure until repaid by the home owner.

(6) The right to cancel may not be conditioned on the repayment of any
funds.

Legislative History

Source: L. 2006: Entire part added, p. 1336, � 1, effective May 30.