When a car buyer decides they want to cancel a warranty, but the dealer refuses to cancel the extended warranty, the customer has legal rights. Buyers have the right to cancel an extended warranty they pay for.
Whitney, LLP’s lawyers deal with car dealership problems for buyers who were lied to and need help. We help car buyers fight back and sue dealerships for mistakes, lying and fraud. Our auto dealer fraud attorneys have successfully sued new and used dealers across Maryland to unwind bad deals and recover compensation.
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How to Cancel the Extended Warranty
A warranty or service agreement is generally considered by consumers to be a contract that covers repairs or damage for a specific period and a certain number of miles. An extended warranty covers a period longer than that of the original warranty. When you purchased a new or used vehicle, you may have bought an extended warranty.
When you are canceling your extended warranty, you will usually get a cancelation form from either the dealership or the warranty administrator. The form states the mileage and the date you are canceling the agreement. You generally then need to get a signed copy of the document from the dealership. There should be an address in the warranty form where you can mail in your cancellation and request a refund. Usually, you will have 30 days to receive the full refund in most extended warranty contracts.
Asking to cancel an extended warranty contract may be problematic because dealerships often refuse to do so in an attempt to maintain their profit margins. Dealerships regularly give the clients the runaround to avoid having to cancel the extended warranty. Often, the dealership has not followed appropriate applicable standards for selling the service agreement in the first place.
Tricked Into Buying the Warranty
To get the client to agree to the extended warranty, the car dealership may use false or misleading statements informing the clients that their car loan will only be approved if they take the extended warranty, and it will be denied if they do not. The clients are then placed in a precarious position of undue pressure to enter into a contract that significantly benefits the dealer.
The add-on products that the dealerships sell are often of no meaningful value to the buyer. On the other hand, it is quite lucrative to the dealership, resulting in enormous profits at the clients’ financial expense.
Rights When the Dealer Refuses to Cancel the Extended Warranty?
After contacting the dealership a few times to no avail, you should seek the advice of an attorney. An experienced attorney will review your case to see if there are valid legal grounds for your claim. They will determine if a violation under the law took place and the appropriate course of action to pursue a claim on your behalf and complete the return.
The law often allows for attorney’s fees to be recovered from the dealer who refused to cooperate in canceling the warranty. 
Refusing to Cancel Warranties Is Common
It is quite common for car dealerships to refuse to cancel extended warranties because they do not want to lose the profit they make from selling these products to unsuspecting customers. Customers need not worry because lawyers are available to protect their interests and guard them against dealerships that take advantage of their rights.
If you were lied to or are the victim of a dishonest car dealership, Whitney, LLP’s auto fraud attorneys may be able to help you fight back, unwind a bad deal contact, and/or recover your money.
How Can We Help You with Your Car Dealer Problem?
We offer Legal Consultations. Call us at 410 583 8000, or use our Quick Contact Form, to discuss your potential case.