2013 Kentucky Revised Statutes CHAPTER 380 - DEBT ADJUSTING 380.060 Person engaged in debt adjusting to contract with debtor -- Disclosure and notice to debtor -- Debtor's right to cancel.
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380.060 Person engaged in debt adjusting to contract with debtor -Disclosure and notice to debtor -- Debtor's right to cancel.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
A person engaged in debt adjusting shall contract in writing with the debtor and
obtain the debtor's signature on the contract which shall designate the date on
which the debtor actually signs the contract as the date of the transaction and
fully disclose the exact nature of the debt-adjusting services and the total
amount and terms of compensation.
Any debtor entering into a contract to provide debt-adjusting services shall
have a right to cancel the contract until midnight of the fourteenth day after the
day on which the debtor signs a contract offer to enter into a contract for
debt-adjusting services, except as provided in subsection (7) of this section.
The following notice, printed in at least twelve (12) point boldface type and
completed with the name and address of the debt adjuster, shall appear on the
contract under the conspicuous caption "DEBTOR'S RIGHT TO CANCEL" and
shall read as follows:
NOTICE OF CANCELLATION
.......................................................
(enter date of transaction)
You may cancel this contract or offer without penalty or monetary
obligation, within fourteen (14) days from the above date. To cancel this
transaction, you may use any of the following methods: mail or otherwise
deliver a signed and dated copy of this cancellation notice, or any other
written notice of cancellation which you sign and date to (enter physical
address of debt adjuster) or e-mail a notice of cancellation to (enter name
of debt adjuster) at (enter e-mail address of debt adjuster) not later than
midnight of (enter date fourteen (14) days after transaction date).
I hereby cancel this transaction.
........................................................
(Date)
........................................................
(Debtor's Signature)
Cancellation occurs when the debtor gives written notice of cancellation to the
debt adjuster at the physical or e-mail address stated in the contract or offer to
perform services.
Notice of cancellation, if given by mail, is given when it is deposited in a
mailbox properly addressed and postage prepaid and, if given by e-mail, when
the debtor sends the e-mail.
Notice of cancellation given by the debtor is sufficient if it indicates in writing
the intention of the debtor not to be bound by the contract or offer of services.
Until the debt adjuster has complied with the disclosure notice required by
subsection (3) of this section, the debtor may cancel the contract or offer of
services by notifying the debt adjuster of his or her intention to cancel.
Effective:July 15, 2010
History: Created 2010 Ky. Acts ch. 86, sec. 2, effective July 15, 2010.
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