Dealership fraud

[K.Holl]

Jurisdiction

New Jersey

Firstly I bought a used car in July...part of the financing was for a warranty plan from a 3rd party institution..I cancelled within the timeframe to receive a full refund..i was later credited 1/4 of the amount stated on my contract..when I contacted the warranty company they stated that they paid what they were entitled to pay and they sent a letter to the dealership stating I cancelled and they were responsible for remainder of the money was to come from the dealership..I made every attempt with dealership to get it refunded to the bank..when this was going nowhere I contacted the bank and reported the fraud..it's been over 3 months and numerous calls to the bank and it still hasn't been resolved

 

[adjusterjack]

What do your contracts say about cancelling the warranty and where the refund comes from?

Keep in mind that you probably have three contract to look at:

Your purchase contract.
Your loan contract.
Your warranty contract.

The bank has no dog in the race. It's between you and the dealer and the warranty company.

You might have to sue both in small claims court and get a judge to rule on who has to give you back the money.

 

[txls]

I agree it is not up to the bank. It usually happens one of two ways.
A) The dealership refunds the entire amount, then they collect the portion due from the warranty company.
B) The warranty company refunds the entire amount, then they collect the dealership portion from them.
I've never heard of the customer having to collect from both.
If I were you, I would be hounding the dealership. You purchased the warranty from the, so they are your representative with the warranty company. Talk to the general manager.

 

[K.Holl]

I do not know what else to do..I had been in contact with the dealership after contacting the warranty company and they stating a letter was sent to the dealership saying they were responsible for the balance owed..I only contacted the bank after 2 months of delay after delay and dealership later stating they don't have to refund me anything and I was cutting into there profit..I contacted the warranty company and asked for a copy of the letter sent to the dealership..they refused saying they only deal with the dealership not the customer..Ive stated this to the banks fraud department and they to seem to have received the letter after there investigation..the bank says they have received word that the dealership will be sending a check for the balance..it's been 2 weeks of inquiries and there doesn't seem to be any sense of urgency..the reason why I believe the bank is part of the fraud is because..the loan states the value of the warranty and if I cancelled the warranty and was not credited the full amount..they cut the check to the dealership...I am the banks customer..this money is not coming to me but is going into the money owed in paying off the loan..I never received any letter of who has the balance of the warranty..I want to sue all of them for the aggravation.

 

[txls]

Well it's true that you are cutting into the dealership's profit but too bad they just need to suck it up. It's really no different than if you return an item to Walmart, they refund your money and lose their profit. The bank is not part of the fraud. The bank is a potential victim. If you failed to pay all of the loan, then the bank would be short because of the lack of full refund. It is in the interest of the bank to get the refund, and it sounds like they have been pursuing the matter.