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Steinlaw, Lawyer
Category: Consumer Protection Law
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Bought a car w/ refundable extended warranty. Car was totaled

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Bought a car w/ refundable extended warranty. Car was totaled and as I pursued my refund, I found out the dealership cancelled the contract within 30 days of the purchase and the $ refunded to them. Called Mazda credit to tell them and they where told the same but because it was cancelled I got the full amount. I called Natl warranty to find out why the contract was cancelled. The dealership reported financing not going through. I called MazdaCredit to find out how they got pd since the policy had been cancelled, and the dealership gone. They said when a dealership closes money goes into reserves and when they contacted Natl, found out the policy had been cancelled within 30 days they took the $ from reserves. I asked who they contact about reserves. She said another dept. I asked, a dept within Mazda Credit, she said, yes, I guess. I told her the interest I’ve paid should be taken out of that reserve. She said I’d have to take that up with the dealership, but they are out of business.
Submitted: 6 years ago.
Category: Consumer Protection Law
Expert:  Steinlaw replied 6 years ago.
Thank you for this information. What is your specific legal question?
Customer: replied 6 years ago.
Shouldn't someone be responsible for the interest I've paid for 4 yrs on my cancelled, without my consent, refundable warranty?
Customer: replied 6 years ago.

Had that money been refunded to my loan after the contract was in effect and payments would not have been reduced, it would have taken 10 mos off the loan and saved me $1004.24, and worst case, had the $1800 never been charged and the loan pmts been less for the same amount of time, I would have saved $459.39. They think I'm so lucky to be getting a full refund instead of a prorated refund that I should consider myself lucky. I think I paid interest on my own money without the benefit of the service I'd paid for and they owe me my interest back as well as interest it would have earned, or just the $1004.24 and call it even.

This certainly seems to me to be fraud and the dealership should be accountable, or their reserves that Mazda American Credit seems to have the access to and control of.

Expert:  Steinlaw replied 6 years ago.
Thank you for your question and I look forward to assisting you. Please keep in mind that I can only respond to your post and the information contained in it, as I do not know what you know unless you have put all of the information in your question. Also, due to site reasons, oftentimes I am initially only able to see the first part of your post, so I apologize in advance if it means more interactions between us. Also, there may be future facts that are as yet undetermined in your matter, that can and must leave some areas of information provided by me broad in nature. However, don't hesitate to ask for clarification if needed! At times, there can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break. That being said...

I am sorry you are going through this. It is clearly a situation where you have been ripped off, as David Horowitz used to say.

At this time, someone is responsible for that amount of money. You first need to contact Mazda American Credit. They should be paying you this money back. But also contact Mazda Corporation at the same time, since they are, or were, responsible for the dealerships. One of those two should be paying you back.

Simultaneously, file a complaint with the FTC, your state attorney general and the DMV. Car dealerships and finance companies are highly regulated. These groups will want to know about this. It is a violation of the regulations and an investigation should get your money back. My guess is that you are not the only victim and an investigation will reveal a lot more going on here!

Good luck and let me know how this turns out for you.

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