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Need Help Re: Vehicle Service Contract Refund


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Not sure if this is the correct forum for this, but.....

I purchased a used car in Ohio on March 29th. I got financing from the Dealership. As I was going over the terms of the loan with the Finance Manager, he explained the interest rate, monthly payment, etc., and quickly slipped in a line about a vehicle service contract being "included" in the monthly payment. I knew that "included" meant that I was paying extra for it, but I reluctantly agreed.

When I got home and read the contract, it said that I had 30 days to cancel and receive a refund of the cost of the service contract. On April 3rd, I went back up to the dealership and told them that I wanted to cancel the service contract. They said "okay", marked it

'Canceled: 4/3/2012', signed it, and said that it would be taken care of.

On April 29th, I received a copy of a letter that was sent to the dealership saying that my application for the vehicle service contract had been rejected because the dealership used the wrong form.

On May 4th, I called the dealership to ask about the refund for the cost of the service contract and they told me that it had been sent for processing and the refund should show in auto loan account "any time now".

I called back two weeks later and a was told by someone different that the check had been sent to the finance company about 6 weeks ago and that it usually takes 6 - 8 weeks for the payment to post. Again, they told me that the refund should show "any day now".

I called back a week later and, after being transferred and hung-up on five times, I was finally connected to the actual finance mgr. who had supposedly handled the cancellation and he told me that the check hadn't even been sent to the finance company yet!! He said that they were waiting for a refund from the service contract provider.

So, the dealer's trying to put it off on the service contract provider. But I can't even imagine that the dealer would have ever sent them any money, seeing as how I told them that I wanted to cancel 4 days later and that the application was never accepter -- it was rejected due to a mistake on their part.

And, even if they did send the money to the service contract provider, seeing as how it's been almost 60 days, shouldn't the dealer have to refund the finance company and deal with the service contract provider separately?

How long should I have to wait to get a refund? That $2700 is included in my car loan, which accrues interest daily.

Any ideas on what I can do about this?

Thanks!!

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Also report to the DMV, they usually license car dealers. Maybe before you go through all that, pay a lawyer a hundred bucks to send them a nasty letter. Might be a good investment. 60 days is more than enough. What would they do if you fell 60 days behind? There would be a wrecker in your driveway in about an hour.

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Thanks so much for the replies!

Coltfan - My AG's website has a form for consumer complaints. It has a section for you to explain your complaint, and another section that says "Briefly describe what you would consider a reasonable resolution to your complaint:". I'm not looking to be greedy. What I care about most is just getting the refund. BUT, Legaleagle is right -- 60 days is more than enough. And, my state's Consumer Practices Act (OCSPA) says:

(A) No supplier shall commit an unconscionable act or practice in connection with a consumer transaction. Such an unconscionable act or practice by a supplier violates this section whether it occurs before, during, or after the transaction.

(B) In determining whether an act or practice is unconscionable, the following circumstances shall be taken into consideration:

.

.

.

(7) Whether the supplier has, without justification, refused to make a refund in cash or by check for a returned item that was purchased with cash or by check, unless the supplier had conspicuously posted in the establishment at the time of the sale a sign stating the supplier’s refund policy.

Would that be worth mentioning in my complaint?

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Also report to the DMV, they usually license car dealers. Maybe before you go through all that, pay a lawyer a hundred bucks to send them a nasty letter. Might be a good investment. 60 days is more than enough. What would they do if you fell 60 days behind? There would be a wrecker in your driveway in about an hour.

I sent them a letter...I detailed all of my calls over the past few weeks, requesting a refund, and every time that they told me it had already been processed and should show "any day now". I also mentioned how the finance company sent the entire amount of the loan to them, and how the service contract provider said that they never received any money from them (so, they have - or should have - the money, and I want it given back, within 14 days). And that, if a refund isn't issued, I plan to pursue legal action against them.

What do you think?

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Would that be worth mentioning in my complaint?

A complaint in court, yes, which is what I would be filing after giving them 10 days to do the right thing. But the AG knows the law, so you can mention if you want.

I was just giving you the easy way to handle it. I'd be blowing this up but I just figured you want a quick resolution, and AG love to get quick results for stuff like this.

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I'd be blowing this up but I just figured you want a quick resolution

Not necessarily....I'm definitely not opposed to "blowing this up". I've already threatened to go to war, in that letter that I sent them. I'm just trying to gear up for the follow through...

So........what would be the 'little bit harder' way to handle this?

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  • 4 weeks later...

hey

what happened? Did you get your refund? I am in the same situation as you. I bought a new car and then I canceled the vehicle service contract two days later. They are also saying that I'll get the refund in two months. It has been three weeks so far. The dealership filled out and signed a form for me. I got a copy of this form and along with a copy of the contract, I sent it to the provider with certified mail just to be sure. Should I be worried? What should I do next?

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