What can I do if my dealership in California won’t refund my service contract?

Question from Brenda, What can I do if my dealership in California won’t refund my service contract?

Answer from AI:

In California, the law provides certain protections for consumers who wish to cancel their service contracts. However, the specifics of these protections can vary depending on the details of the contract and the circumstances surrounding its cancellation.

Understanding Your Contract

Firstly, it’s important to understand the terms of your service contract. Some contracts may include provisions that allow for cancellation under certain conditions, while others may not. If your contract does allow for cancellation, it should also specify the process for doing so and any penalties or fees that may apply.

California Service Contract Law

In California, the law requires service contract providers to provide a full refund if the contract is cancelled within 60 days (for a new contract) or 30 days (for a renewal) of purchase. After this period, the provider is required to provide a pro-rata refund, which is a refund that’s proportionate to the unused portion of the contract. This is outlined in the California Civil Code Section 1794.4.

Legal Remedies

If your dealership is refusing to refund your service contract despite your right to a refund under the contract or California law, you may have several potential legal remedies:

1. File a complaint with the California Department of Consumer Affairs: This agency oversees businesses and service providers in California, and can investigate complaints and take enforcement action if necessary.
2. File a lawsuit: If your dealership is refusing to comply with the law or the terms of your contract, you may be able to sue them for breach of contract or violation of California’s consumer protection laws. You may be able to recover damages, including the amount you lost due to the depreciation of your vehicle.

Consulting a Legal Professional

Given the complexity of this issue and the potential for significant financial loss, it would be wise to consult with a legal professional. A lawyer can review your contract, advise you on your rights and options, and represent you in any legal proceedings if necessary.

Please note that this information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Always consult with a legal professional for personalized advice.