North Carolina Administrative Code › Title 19A - TRANSPORTATION › Chapter 03 - DIVISION OF MOTOR VEHICLES › Subchapter J - RULES AND REGULATIONS GOVERNING THE LICENSING OF COMMERCIAL TRUCK DRIVER TRAINING SCHOOLS AND INSTRUCTORS › Section .0600 - CONTRACTS › Section 03J .0605 - CANCELLATION AND REFUND PROCEDURES AND COOLING-OFF RIGHTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) After the cooling-off period has ended, a
				  student may cancel his or her enrollment in the course by notifying the school.
				  Cancellation by the student is effective on the date the student mails or
				  delivers written notification to the school or on the date that the student
				  gives the school constructive notice of his or her intention to withdraw from
				  the course.
(b) If a prospective
				  student cancels the enrollment contract during the period described in the
				  notices required, the school must refund all payments made by the prospective
				  student and cancel and return any evidence of indebtedness within 21 days after
				  receiving any notice of cancellation. If a school fails to comply with the
				  proper enrollment and cooling-off procedure, it shall not retain any money or
				  evidence of indebtedness from a prospective student.
(c) If a student gives the school written
				  notice of his or her intention to remain enrolled in a course, the time period
				  for measuring constructive notice will begin anew from the date of the written
				  notice. Any prior cancellation by virtue of the student's constructive notice
				  will not be effective if the student provides this written notice of his or her
				  intention to remain enrolled.
(d)
				  If a student cancels his or her enrollment contract after the cooling-off
				  period, the school shall not receive, demand, or retain more than the one
				  hundred and fifty dollar ($150.00) registration fee and a pro rata portion of
				  the total contract price. This total pro rata portion shall be calculated by
				  dividing the total number of course hours by the total contract price to obtain
				  an hourly rate. This hourly rate shall be multiplied by the actual number of
				  hours the student attended the school. Refunds must be made within 21
				  days.
(e) For courses consisting of
				  a combination of home study lessons and resident training, not more than one
				  hundred dollars ($100.00) in addition to the registration fee referred to in
				  Paragraph (d) of this Rule shall be retained by the school for those students
				  who fail to enter resident training, unless the school submits affirmative
				  evidence acceptable to the Commissioner of Motor Vehicles disclosing the home
				  study lessons are of such quality and content as to reasonably assure that the
				  students will achieve the stated objective without the resident training
				  portion of the course.
(f) The
				  school must include in the enrollment contract the following notice: "CANCELING
				  THIS CONTRACT." "A student may cancel this agreement at any time before the
				  commencement of classes and prior to the end of the five-day cooling off period
				  and receive a full refund of the tuition that has been paid by the student. The
				  NOTICE OF CANCELLATION to be given by the student shall be in writing and may
				  be delivered by Registered Mail or in person to an owner, partner, corporate
				  officer, agent, or other representative of the school. The cooling-off period
				  begins when the student is given or mailed a signed copy of the completed
				  contract. Contracts canceled after the cooling-off period entitle the school to
				  retain not more than one hundred fifty dollars ($150.00) registration fee and a
				  pro rata portion of the total contract price based on the number of hours the
				  student attended school. Refunds must be made within 21 days following delivery
				  of the NOTICE OF CANCELLATION." The title of the notice "CANCELING THIS
				  CONTRACT" must be in all capitals with boldface type.
(g) If either the school or the instructor
				  fails to comply with the provisions of any contract or agreement between the
				  school and the student, the school shall refund, on a pro rata basis, all
				  monies collected from the student as consideration for the performance of the
				  contract or the agreement.
Authority
					 G.S.
					 20-320 through
					 20-328;
Eff. May 1,
					 1987;
Amended Eff. January 1, 1994;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 22,
					 2018.