What to do regarding an invalid service contract?

UPDATED: Mar 10, 2012

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What to do regarding an invalid service contract?

We bought a used car 2 years ago. We were told all things were fabulous on the car, no problems to speak of etc. We took the car in for regular maintenance and found a few more things than usual wrong. We had a full service contract for 5 years on the car with bumper-to-bumper coverage. We were told the service contract could not be honored because the mileage was written down incorrectly at the purchase signing of the vehicle. They cancelled our contract for services and are now saying we have an illegal contract with the bank. What should we do from here?

Asked on March 10, 2012 under General Practice, Arizona


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to file a complaint with the entity who handles or regulates such service contracts (like insurance or the attorney general) and you need to indicate that this is a mistake on the part of the dealership not yours and therefore they should honor the contract. To do otherwise is to act in bad faith and since they had this contract for two years, to attempt to terminate now is a breach on their part. You would probably win if you sued but try the routes I gave first, which shouldn't cost you any money.

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