You have the right to cancel a debt settlement service contract if you respect the prescribed deadlines, even if the merchant has already provided services.

In legal terms, this is known as "contract resolution." This means that you and the merchant must find yourselves in the situation you were in before signing the contract.

10 days to cancel the contract

You always have 10 days to cancel a contract. You do not have to explain your reasons to the merchant. This 10-day period begins on the day after the date on which you received your signed copy of the contract.

For example, if you received your copy on a Tuesday, you have the right to cancel your contract until Friday of the following week. If the 10th day falls on a statutory holiday or on a weekend, the deadline is postponed to the next business day.

One year to cancel the contract

You can cancel a contract within the year that follows the date on which it was signed by both parties (the merchant and you). To do so, you must find yourself in any of the following situations:

• the merchant did not provide you with a service:
  • within 30 days after the date indicated in the contract, or
  • after these 30 days, on the date agreed upon with you (unless you accepted a service provided after this deadline);
• the merchant failed to comply with :
  • the rules that govern the contract's form, signature and remittance, if the contract was entered into in person,
  • the rules that govern contracts entered into online or the rules that govern contracts entered into by telephone;
• your contract did not contain all of the mandatory information;
• the merchant did not append the resolution form to the contract at the time of signature;
• if the contract involves negotiating a settlement of your debts or receiving funds the merchant will then distribute to your creditors:
  • the merchant did not hold a valid permit issued by the Office de la protection du consommateur when you entered into the contract with him or her,
  • the merchant did not provide a valid or compliant security to the Office when you entered into the contract with him or her.

Cancellation procedure

You can notify the merchant of your decision to cancel the contract:

• using the resolution form appended to the contract; or
• by sending the merchant a written notice to that effect.

The merchant's obligations in the event of a cancellation

In the event a contract is cancelled, each party must return what he or she has received to the other party. If you paid any money to the merchant, he or she is required to reimburse you no later than 15 days after sending the form or notice.

If you have given any goods to the merchant as payment, a trade-in or on account, the merchant must return them to you. If this cannot be done, the merchant is required to pay you the highest of the 2 following amounts: the value of the item or its price as indicated in the contract. The merchant must also pay any fees incurred to return the goods, if necessary.

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