Troubleshooter helps woman get refund from service contract

ByDiane Wilson and Selina Guevara via WTVD logo
Wednesday, March 13, 2019
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Vehicle service contracts are something many drivers purchase when buying a new or used car.

GRAHAM, N.C. (WTVD) -- Vehicle service contracts are something many drivers purchase when buying a new or used car. It offers coverage for unexpected repairs if something goes wrong with the vehicle.

Doretha Yancey paid more than $2,400 for a five-year service contract back in 2016 from Vehicle Solutions.

Everything was fine until Doretha's car was totaled in October of 2018.

With two and a half years still on the service contract, Doretha said she followed the instructions to cancel it, but she never got her money back in her pocket.

"Every time I called from last October till now. Last Friday, they gave me the runaround," Doretha told me.

That's when she got me involved.

I reached out to the administrator of the service contract, CarGuard. A representative told me they were just an administrator of the contract, and = they had sent a refund check of their portion to the third party seller, Vehicle Solutions, who they said is now out of business and didn't cash the check.

The representative went on to explain that while they offered their portion of the refund, Vehicle Solutions was responsible for the rest of the refund. But with Vehicle Solutions out of business, Doretha said she couldn't get a hold of anyone.

Instead, a representative with CarGuard said they wanted to show that they care about their customers, and they worked directly with Doretha and refunded her $1,163, which is more than CarGuard's responsibility.

"Once I talked to you all, they expressed it overnight," Doretha told me. "Thank you all for helping me, I really appreciate it."

The representative from CarGuard added this was a rare case because the third party seller, Vehicle Solutions, went out of business. Doretha is very happy CarGuard worked with her on a resolution.

If you're looking to purchase a service contract or an extended warranty, this is a good reminder to check and see if an extended warranty is done directly through the car manufacturer or through a third party, and who administers the contract. Also, make sure to read the fine print on cancellation policies before buying one.