How canI cancel a used service auto contract and GAP insurance coverage?

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How canI cancel a used service auto contract and GAP insurance coverage?

I purchased a used vehicle from dealer, plus i got a service contract with GAP insurance. I am currently active in military but cannot afford the additional cost for these 2 services. The gap insurance and the service contract are being financed at 29.99% interest rate along with the car note. The dealer is refusing to cancel for me. How do I find out who the agent is for the GAP insurance and can I contact the the service contract company and cancel myself?

Asked on October 21, 2010 under General Practice, Washington

Answers:

FNI / FNI Incorporated

Answered 11 years ago | Contributor

Definitely best to go to your base legal advocate. It is likely they have a dedicated auto/consumer legal specialist that can make short work of this issue for you. These kinds of products are almost always cancellable by their own terms or by state law and you can cancel the products with the company directly (note that the company will refund you a portion of what the dealer paid them - if the dealer marked up the products for profit, the dealer will still owe you [or your lienholder] a corresponding cancellation percentage of their profit as well).  The local department of motor vehicles or whoever regulates/licenses auto dealers in your state can be of assistance in helping you resolve an issue with the car dealer that sold you the car.  And the bank that financed the purchase and products (if other than the dealer!) can also help you if it is just the dealer holding up the process, rather than a contract issue or product company failure.  Good luck.

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You have signed binding contract with these people and they will hold you to them unless there is a right of cancellation.  Those rights can be given by the laws in the state in which you live or can be in the contracts themselves.  May I suggest that you take the contracts to the legal department on the base on which you are stationed and ask for help in this matter?  You have every right to know who the agent for the insurance is and who the financing party is as well.  I think that given your status and once the legal help gets involved the matter may be able to be resolved.  Good luck.  And thank you for your service.  


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