What to do about problems with warranty services?
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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
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 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.
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