What to do about problems with warranty services?

UPDATED: Feb 4, 2014

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Feb 4, 2014Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What to do about problems with warranty services?

A car dealership I purchased a car from was supposed to refund 2 different warranty services to my finance company. They had approval to refund about 2 months ago, however they have not done so. Basically, I am paying interest in this money to the finance company, while the dealership is holding the money in an interest bearing account, also earning interest on it. Is this illegal? Is it some sort of tax fraud?

Asked on February 4, 2014 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It may be fraud; it may also be a form of theft commonly called "conversion" (taking for one's own benefit money entrusted to one); and it may be breach of contract, if there was an agreement (as I assume there was) that they would do this. If the money was supposed to be refunded to the finance company but the dealership will not, you could sue them to force them to do so, as well as for monetary compensation (e.g. any charges, interest, etc. you incurred due to their failure to act as there were supposed to). If the amount at stake is less than the maximum limit of your small claims court, filing the law suit "pro se" (as your own attorney) in small claims court is a good option.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption