(1) A consumer may, at any time before the final payment under a lay away plan falls due, be entitled to cancel the lay away plan by giving notice of cancellation in writing to the seller.
(2) Where a consumer defaults in paying installments on the lay away plan, the seller shall be entitled to cancel the lay away plan by giving the consumer notice of cancellation in writing.
(3) Where a lay away plan is cancelled pursuant to subsection (2) a seller may retain a cancellation fee which shall not exceed 5% of the purchase price.