§ 332A.11 — Right to Cancel
Plain-Language Summary
A debtor can cancel a debt management services agreement at any time for any reason by giving ten days' written notice. The provider must then notify all creditors and refund any unused money within ten days. The contract must state this right prominently near the debtor's signature line. The agreement ends automatically when all debts and fees listed in the plan are paid off. The provider can also cancel with good cause on 30 days' notice.
332A.11 RIGHT TO CANCEL.
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Subdivision 1.Debtor’s right to cancel.
A debtor has the right to cancel the debt management services agreement without cause at any time upon ten days’ written notice to the debt management services provider. In the event of cancellation, the debt management services provider must, within ten days of the cancellation, notify the debtor’s creditors of the cancellation and provide a refund of all unexpended funds paid by or for the debtor to the debt management services provider. §
Subd. 2.Notice of debtor’s right to cancel.
A debt management services agreement must contain, on its face, in an easily readable type immediately adjacent to the space for signature by the debtor, the following notice: “Right To Cancel: You have the right to cancel this contract at any time on ten days’ written notice.” §
Subd. 3.Automatic termination.
Upon the payment of all listed debts and fees, the debt management services agreement must automatically terminate, and all unexpended funds paid by or for the debtor to the debt management services provider must be immediately returned to the debtor. §
Subd. 4.Debt management services provider’s right to cancel.
A debt management services provider may cancel a debt management services agreement with good cause upon 30 days’ written notice to the debtor. Within ten days after the cancellation, the debt management services provider must: (1) notify the debtor’s creditors of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the debtor.
History:
2007 c 57 art 3 s 54; 2009 c 37 art 4 s 16
History: History: 2007 c 57 art 3 s 54; 2009 c 37 art 4 s 16