Lawsuit Filed After Dealer Refuses to Cancel Warranty

extended warranty 300x193 - Lawsuit Filed After Dealer Refuses to Cancel Warranty

The attorneys at Whitney, LLP recently sued a car dealership in Maryland due to its refusal to cancel a warranty and refund the purchase price after our client bought a new car and warranty at the same time, and then exercised his right to cancel the warranty and get a refund several days later.  Despite the finance manager telling our client that he could cancel the warranty  within 30 day and get a full 100% refund, the finance manager refused to cancel the warranty when he tried to cancel it a few days after the purchase.

Whitney, LLP’s consumer rights and auto fraud lawyers represents car buyers in extended warranty, GAP and vehicle service contract claims against dealerships across Maryland, including Baltimore, Pasadena, Cockeysville, Owings Mills, Temple Hills, Marlow Heights, Silver Spring, Frederick, Waldorf, Glen Burnie, Rockville and Salisbury.

We help car buyers unwind bad deals and recover compensation. We offer Legal Consultations. Call us at 410 583 8000, or use our Quick Contact Form online.

Here are the 10 most common schemes at Maryland car dealerships that Whitney, LLP helps our clients with. If you feel the dealer cheated you, call us to discuss your legal rights with a Legal Consultation.


When the Car Dealer Won’t Refund My Warranty After I Cancel

The lawsuit reflects that while negotiating the vehicle’s purchase price with our client, the finance manager sold an expensive extended warranty vehicle service plan.  To entice our client to purchase the extended warranty plan, the manager promised that he had up to 30 days to change his mind, cancel the plan, and get a full refund of the extended plan’s purchase price of more than $3,000.  Our client agreed to the purchase of the warranty, believing what the finance manager promised him – that he could cancel the extended plan for any reason within 30 days, and get a full refund.

Less than two weeks later, our client decided he wanted to cancel the plan, and returned to the dealership, where the finance manager refused to honor his promise of a full refund.  Instead, the manager said he would refund only a portion of the price of the plan, and only if our client agreed to falsely claim that the refund request had been made 90 days after the purchase. 

Our client refused to go along with Finance Manager’s lie regarding the date of his cancellation and refund request. Our client signed the cancellation form, and wrote the actual date on the refund request form next to his signature.

After our client handed the finance manager the signed and dated warranty refund request form, the finance manager crossed out our client’s written-in date, and wrote in a false date, one more than 90 days after the sale.  To make matters worse, the dealership did not just refuse to provide a partial refund as the finance manager had indicated, it refused to refund any amount of the purchase price to our client, with our client’s phone calls and letters being ignored.

Compensation for Finance Managers Selling Extended Warranties and Products

As it turns out, the finance manager wanted to keep his entire pay bonus/incentive that he got for selling the warranty. To do that, he had to cancel it after 90 days had passed from the date of sale.

What finance managers do not tell customers is that, per usual pay plans, if a warranty or other after-market product, such as GAP, dent and ding protection, pre-paid maintenance or other service contract, is canceled within 90 days, they do not get credit and will get money taken out of a later pay check. However, if the after-market product is canceled over 90 days after it is purchased, they still get credit. However, usually if a product is canceled after 90 days, the customer will only get a partial refund.

Lawyer to Help Get Back Warranty Refunds after Cancelation

Our client did a Google search for a lawyer to sue a car dealership near me, and found Whitney, LLP. After he called, spoke with our attorneys and sent his paperwork, it was obvious that the dealership had committed deception and fraud, and was required to refund 100% of the cost of the warranty.

After filing a lawsuit, the case quickly settled for the full return to our client for the cost of the warranty, and payment of all costs and attorney’s fees.

If you have been the victim of a dishonest dealership keeping your warranty payment, or refusing to return your payment for a service contract after you cancel it, or they refuse to cancel a warranty or other product such as GAP, the lawyers at Whitney, LLP can help. Our attorneys sue dealerships across Maryland and help car buyers fight back, unwind bad deals, and recover compensation for unfair treatment.

Call us at 410 583 8000, or use our Quick Contact Form online for your Legal Consultation. 


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