Warranty Contract Cancellation Help

[YankeeHalo]

Hi all,

I need your input. My mother purchased a car warranty via phone, of course they fenagled the price to accommodate her fixed income. They told her the warranty would kick in on a certain date (about a month from the conversation). After the phone call, she felt uneasy about giving out too much info, so she called her cc co. They told her to try & work it out w/ the co., meanwhile, the cc co. did not accept the charge. (chargeback). When mom received the contract, it stated that she had to wait the 30 day waiting period AND go 1,000 miles before the warranty would take effect. Needless to say, they did not disclose that info during the initial trans. Mom called w/in 3 days & tried to cancel via the phone where she was met with resistance & intimidation on cancelling the contract. She was so flustered she hung up. Oh, the person also std that she wld b chrgd w/ 10% of full contract amt.

Supervisor called last week and stated that the dwnpmt was chargedback. I told S the story. S std that mom had to write a letter, send in original contract, w/ a current odometer reading, sign and print her name.

I was looking at the Truth in Lending Act about Disclosure, so that we could state that the co. did not provide full disclosure about the added mileage. Also, contract doesn't state that the contract w/ an od. reading is necessary to cancel. Another gliche I saw in the contract was that under the Down Payment block it states "min. 10% which they charged her less than that.

Any ideas on how to handle this particular cancellation? Thanks again everyone!

[montanatim]

No one on your side has received anything of value....yet.

IMHO, if the credit card company will continue to refuse charges from this insurance place, stay the course. Pay them nothing, stop talking to them, and they will probably stopxdeadhorsex in due time.

[swirlgirl]

I'm pretty anal about things like this. I would send a letter to the CC company requesting that they keep refusing the charge. This way you have documentation of your official request and your CC's acceptance of this.

Then, I would send a letter to the warranty company, explain that your mother feels like she was taken advantage of, and that you wish to immediately cancel the contract. Also, send a copy of the letter to some higher up at the warranty company.

By doing this, you are covered on both ends. Plus you will want to stay on top of this. You don't want this to end up going to collections when the CC payments keep getting rejected.

[YankeeHalo]

Thank you for the advice. We didn't want to give anymore information/documentation than what we believed necessary to cancel out the contract. We'll send the letters CRR so we have all the necessary documentation. Thanks again for the advice. If anyone has any further advice, please post.

Thanks again:)

YankeeHalo