Q: I cancelled a contract for tax services within 3-business days. Am I legally entitled to a full refund?
I spoke with the owner over the phone and he verbally told me that he would refund my money if I decided to cancel. I disputed the charge on my CC, and now they are not returning calls and they are fighting my dispute. My CC company is saying they may not be able to win. I don't understand how that can be.
A:
Under California law, certain contracts afford consumers a statutory right to cancel within a specific period, often referred to as a "cooling-off" period. However, not all service contracts fall under these provisions. If the contract for tax services did not include a provision for cancellation within 3 business days or if the service doesn't fall under a category that provides for a statutory cancellation period, then the right to cancel may not be guaranteed.
That said, if the owner verbally agreed to refund your money upon cancellation, that could potentially be construed as a verbal contract - or, at least, promissory estoppel (a promise that must be enforced because you took detrimental action in relying upon it). That said, proving such promises can be challenging. If they are refusing the refund after making such a promise, and your credit card dispute doesn't resolve the matter, you might consider pursuing the issue in small claims court or seeking further legal advice. Always keep records of all communications and documentation related to the transaction.
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