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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 118286
Experience:  Attorney experienced in commercial litigation.
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I purchased a warranty when I purchased my 2012 chevy silverado.

Customer Question

I purchased a warranty when I purchased my 2012 chevy silverado. The company is called The Penn Warranty Corporation. I have been trying to get in touch with them to cancel it for about a month. I purchased the vehicle 4/19/15. Finally spoke to someone this AM, they tell me I can not cancel it, there is no refund. The only way to get a refund was to cancel it with in 30 days, or it gets repossessed? They get you by having the dealer talk you into it and them adding it to your financing. I don't want to finance an extra $4000. I just want it to go back to the finance company, so I don't owe as much. Is there anything I can do?
Submitted: 2 years ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What does the contract you signed say on the warranty, that is what binds you and what the court would have to rule upon if this were to go to court? So what does your warranty contract say about cancellation?
Customer: replied 2 years ago.
It says cancellation by you. You may cancel this service contract at any time. However you may not be eligible for a refund after 30 days depending on state regulations. To cancel, you must submit a written request and return the service contract to the administrator. If you cancel this service contract within 30 days of the service contract purchase date, a 100% refund of the service contract price will be made, less any claims paid. All refunds will be paid to the lien holder, if any, otherwise to you. There is a paragraph that references cancellation by "us", and cancellation by lien holder. There are 14 states listed separately with different provisions regarding cancelling. VA is not listed.
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your reply.
VA law, actually has no specific laws regarding right to cancel these third party warranties. The terms of your contract, unfortunately, is the law governing the terms of the deal. VA courts go by the terms of the contract agreement you signed.
If you are alleging this was an unfair and deceptive practice to entice you into the warranty and that the dealer told you it could be cancelled for a refund at any time, you can file a complaint to the dealer first to try to get them to refund and cancel the warranty. If they refuse, your next step is to the VA Attorney General to complain about the unfair and deceptive practice to get you into the warranty.
If the AG cannot resolve the matter, I am afraid that you are going to have to go to court to prove the dealer was deceptive and misrepresented this warranty, thereby committing unfair and deceptive practices, in order to get it cancelled. Other than proving the misrepresentation, I am afraid the only other way out of this contract is by proving the warranty company somehow breached the contract and then you can sue them for breach of the contract.