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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 17884
Experience:  B.A.; M.B.A.; J.D.
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I recently bought a car with my wife and we decided to

Customer Question

hello,
i recently bought a car with my wife and we decided to engage the extended warranty people to continue the manufactures warranty into the life of the car but after reviewing the terms and long term costs of ownership of the vehicle, we decided to cancel.
so according to our contract documents there is a procedure to cancel the contract
which included filling out the form in the booklet and photocopying it and sending it in the mail to the address listed in the book. this was all done according to the instructions on the 3 of january 2016.
when my wife called them prior to that day she inquired about cancelling the plan and they stated that we would get a discount if we decided not to cancel but that if we still wanted to then we should follow the instructions on the form in the contract booklet
after reviewing our credit card statement we saw they had continued to charge at the non discounted rate even though we sent in the form the same day we talked to them.
now they are saying that they never recieved any notice about our desire to cancel and when i informed them about the situation to have the charge refunded and the plan terminated
they informed me that the address on the contract document is no longer the correct address and now they will need to send me a new form in the mail to my house. and i will need to take that form and re make copies of the original form and have them both notarized and sent to some new address. Meanwhile, he said he was unable to take cancellation notices verbally over the phone and there fore if the documents aren't recieved by the next billing date that i would be liable for those charges as well.
my question is can they refuse to cancel my contract over the phone? and i believe texas state contract law prevents unreasonable cancellation fees not to exceed $50...
also they always verified my security informaiton over the phone verbally
so i feel like it is unreasonable to require a mailed in notice before even stopping charges
Submitted: 11 months ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 11 months ago.

They can refuse to take the cancellation notice over the phone if the contract states that the notice must be in writing. However, if you sent the cancellation notice to the address given, then any charge after the date of that notice, whether they received it or not must be refunded. You upheld your part of the agreement by sending your notice where you were instructed to send your notice. If they changed the address, they have legal obligation to communicate that information to you. Since they did not, you cannot be penalized for their oversight.

If they refuse to refund you all the money due, you need to file complaint against them with the Better Business Bureau and your Attorney General's Office.

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