House Journal: Page 1005: Monday, April 2, 2001
Page 6
1 d. The contract must contain the name, address,
2 and telephone number of the seller, the total price of
3 the contract, and a detailed description of the goods
4 or services being sold.
5 e. The contract must contain, in bold, conspicuous
6 type, immediately preceding the signature, the
7 following statement:
8 "You are not obligated to pay any money unless you
9 sign this contract and return it to the seller."
10 f. The contract must not exclude from its terms
11 any oral or written representations made by the
12 telephone solicitor to the consumer in connection with
13 the transaction.
14 This section does not apply to contractual sales
15 specifically regulated by other law, or to the sale of
16 financial services, security sales, or sales
17 transacted by insurance companies or their wholly
18 owned subsidiaries or agents, or to the sale of cable
19 television services to a franchised cable television
20 operator's existing subscribers within that cable
21 television operator's franchise area, or to any sales
22 where no prior payment is made to the merchant and an
23 invoice accompanies the goods or services allowing the
24 consumer no less than seven days to cancel or return
25 the goods or services without obligation for any
26 payment.
27 Sec. 6. NEW SECTION. 476B.6 RESTRICTIONS ON
28 CHARGES TO CREDIT CARD ACCOUNTS AND ELECTRONIC
29 TRANSFERS OF FUNDS.
30 1. A merchant who engages a telephone solicitor to
31 make or cause to be made a telephone solicitation
32 shall not make or submit any charge to a consumer's
33 credit card account or make or cause to be made any
34 electronic transfer of funds until after the merchant
35 receives from the consumer a copy of the contract,
36 signed by the consumer, that complies with section
37 476B.5.
38 2. This section does not apply to any of the
39 following:
40 a. A transaction made pursuant to prior
41 negotiations in the course of a visit by the consumer
42 to a merchant operating a retail business
43 establishment which has a fixed permanent location and
44 where consumer goods are displayed or offered for sale
45 on a continuing basis.
46 b. A transaction in which the consumer may obtain
47 a full refund for the return of undamaged and unused
48 goods or a cancellation of services by notice to the
49 seller within seven days after receipt by the
50 consumer, and the seller will process the refund
© 2001 Cornell College and
League of Women Voters of Iowa
Comments about this site or page?
hjourn@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Apr 3 13:35:00 CDT 2001
URL: /DOCS/GA/79GA/Session.1/HJournal/01000/01005.html
jhf