I’d like to cancel my service contract and get a refund. Can I do that?

California law provides that you can cancel your service contract at any time, and receive a refund. However, if the purchase of the service contract was financed, the refund check may be made payable to the purchaser, a person to whom the service contract was assigned at the time of a re-sale, if any, or both the purchaser/assignee and the lender of record. The consumer is entitled to a full refund without having to pay a cancellation fee provided they send written notice of cancellation within the first 30 to 60 days of the receipt of the service contract, depending on the product covered, and provided that no claims have been made utilizing the service contract. After the initial 30 to 60 day period, or if a claim has been made utilizing the service contract, the consumer is entitled only to a pro-rated refund, less any cancellation or administrative fees at the seller’s option based on standards that were stated in the contract. The cancellation or administrative fee cannot be more than 10% of the service contract purchase price, or $25.00, whichever is less. The 60 day time period in which a consumer must send written notice of cancellation (unless the service contract itself provides for a longer period) applies except for the following products:

• A home electronic product;
• A home appliance;
• A used motor vehicle without a manufacturer's warranty;

In these cases, the consumer has only 30 days to send written notice unless the service contract provides for a longer period. The written notice of cancellation should be sent to whoever is specified in the contract. It is unlawful in California to sell a service contract that does not provide a full disclosure of all of these cancellation rights and refund rights.