What To Do When The Dealership Won’t Repair A Part Covered By The Extended Warranty

Posted October 5, 2015

Extended warranties on products are gaining in popularity. Businesses such as car dealerships favor them as a great “upsell” opportunity for those buying a new vehicle because they often bring in far more than they ever have to pay out. However, some businesses create the paperwork for extended warranties without having any intention of honoring the commitment when a claim is filed. Such businesses may put the claimant through endless paperwork in the hopes of causing them to give up their claim. Some may do this with the intention of running out an extended warranty that is about to expire. Some may even flatly refuse to service their extended warranty.

When this occurs, there is one thing that should be made clear right away. It does not matter that warranty work is less profitable for the dealership. A warranty is a contract, and they are obligated to honor that contract when issues arise. In fact, refusing to do warranty work on a car with a valid warranty could be construed as a form of fraud. Understanding this is key to moving forward and ensuring that the work gets done.

If the dealership is refusing to honor the warranty, your first step should be to revisit the warranty and get in contact with the warranty company. A warranty company should be able to clarify the terms of the warranty and to establish what is and isn’t covered by the warranty. Once this has been established, a warranty company can also help by putting pressure on the dealership. A previously stubborn dealership may do the work if the warranty company is in contact with them.

At this point, however, some dealerships will still refuse to honor the warranty. When this occurs, the best thing to do is seek legal counsel. The reason for this is that a dealership that refuses at this point is breaking the law. Specifically, a dealership that refuses to honor such warranties when they are valid is guilty auto fraud, and the consumer’s best recourse is to seek legal action against the fraudulent act. In situations of auto fraud, the act can easily be proven to be willful and thus treble damages can often be sought. An attorney can help step through the process and build a strong case against the dealership for auto fraud and ensure that you are awarded the maximum damages for the contract infringement.

There are consumer protection laws in place to prevent car dealer fraud.  If you have purchased a car, and you suspect car dealer fraud, schedule a free consultation online or call The Bennett Law Firm at 405.272.0303 to discuss your legal options with an experienced Oklahoma City lawyer today. No Recovery, No Fee!