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What to Do If a Dealer Refuses to Cancel an Extended Warranty

If a dealer refuses to cancel an extended warranty, send a written request to the recipient in the contract, contact the provider directly, and keep proof of delivery.
Entry632 Date Time3 min MechanicCarCody Team
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If a dealer refuses to cancel an extended warranty, send a written cancellation request to the recipient named in your vehicle service contract, then contact the contract administrator or provider directly. The CFPB says consumers can cancel an extended warranty or vehicle service contract at any time and end the coverage; the contract still controls how to submit the request and how any refund is calculated.

First, identify what you are cancelling

“Extended warranty” is a common sales term, but a separately purchased vehicle service contract is not a warranty as defined by federal law. It is an optional agreement that pays for specific repairs or services described in its terms, and it is separate from the vehicle manufacturer’s warranty. Cancelling this add-on does not by itself cancel your vehicle purchase, auto loan, or manufacturer’s coverage. See the CFPB’s explanation of extended warranties and the FTC’s guide to auto warranties and service contracts.

How to request cancellation

  1. Read the service-contract agreement. Find the cancellation section and note the named recipient, address or email, required form, refund conditions, and any stated fee. The dealer may have sold the contract, but the agreement may direct cancellation requests to a different administrator or provider. The FTC advises checking the written terms and asking whether a cancellation policy and fees apply.
  2. Send a dated written request to the stated recipient. Clearly say that you are requesting cancellation of the vehicle service contract. Include the contract number and vehicle details as they appear in the agreement, and ask for written confirmation of the effective cancellation date and any refund calculation. There is no universal form established by the sources cited here; follow the instructions in your contract.
  3. Save the request and delivery evidence. Keep a complete copy, plus proof of submission or delivery. For a written complaint that remains unresolved, the FTC recommends contacting the company by certified mail with a return receipt so you have evidence it received the letter. This is a documentation option, not a general legal requirement for every contract.

If the dealer says no or does not respond

Contact the service-contract administrator or provider directly, even if the dealer sold the plan. Send or refer to your written cancellation request and the dealer’s response, and ask the provider to confirm the correct cancellation process. The FTC identifies both the dealer and the service-contract company as contacts when a problem arises with a service contract.

If direct contact does not resolve the issue, report the problem to your state attorney general and the FTC. Your state consumer-protection office may also handle complaints about add-on products; the CFPB lists that office as a complaint channel. Use the complaint instructions for your state and include copies of the contract, your request, delivery proof, and relevant replies. See the CFPB guidance on problems with add-on products and the FTC service-contract guidance.

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What refund should you expect?

Do not assume a particular refund amount, fee, or processing time. The agreement’s cancellation and refund terms matter, and the official guidance cited here does not establish one formula or timing rule for every contract. Ask for an itemized explanation of any refund calculation and the date it will be issued. If the contract’s terms or the dealer’s explanation are unclear, state law may affect your options; the FTC notes that service-contract and implied-warranty questions can depend on state law.

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Keep the scope of the dispute clear

A refusal to process cancellation does not, by itself, establish why the dealer refused or whether a particular form, deadline, fee, or refund applies. Preserve the contract and communications, follow its stated process, and direct the request to the contract company if needed. The right to end this optional coverage is distinct from any dispute about the vehicle sale, financing, or manufacturer’s warranty.

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