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Know Your State’s Three-Day Cancellation Provision

Posted By Laurie Knox, Tuesday, October 4, 2011

Know your state's three-day cancellation provision. This should go without saying. We support a high ethical standard of operation for our member companies. Part of this involves compliance with local, state and federal laws. In fact, a large part of our mission is ensuring you know what those laws are, and have the information you need to make the right decision.

The three-day notice of cancellation provision is required in every state. This means you must be aware of the documentation each customer must receive as part of a systems sale. Even if your state does not have this statute in place, there is a federal law that applies.

Not complying causes problems not only for individual companies but for our industry as a whole. We get a black eye when stories in the media expose companies that don't inform customers or provide them with the proper documentation to ensure they understand their ability to cancel their contract in those first 72 hours after signing.

We believe this provision is good for the consumer and good for our industry. Our goal within the electronic security industry should be to sell, install, service and monitor the best technology, installed by highly-qualified technicians, and monitored by well-trained operators. If our companies do that, we're providing an ongoing service that many consumers want.

If we shirk those duties, and try to sham a potential customer into signing a contract, and provide shoddy service, or even if the customer is just getting cold feet and wants out of the contract, it's important he or she has the option of the three-day cancellation. Certainly we should meet with every customer and work closely with them to keep them onboard, but there are occasions where the sale just wasn't meant to be.

Check into your state cancellation provision. Make sure you follow it. It's good for business, and in the long run, you'll build greater customer equity by good relationships based on mutual trust.

Tags:  three-day cancellation 

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