7 On Your Side helps woman get refund after canceling extended service contract

SAN FRANCISCO (KGO) -- When you buy a car or appliance, you might also buy the extended service contract. But the law allows you to cancel those policies and get a refund. A North Bay woman was entitled to money back, but needed help from 7 on Your Side.

Joan Baker traded in her used Buick for a shiny new minivan.

"I wanted a bigger car that had the capability of towing a trailer or baot," she said.

It meant she could cancel the extended service contract for the old car and get a little cash back.

"I called and they said, 'Oh yeah, you are entitled to a refund,'" Baker said.

Here's why. Joan had paid $2,880 for a four-year service contract. However, she canceled it after just nine months. Under the terms and under California law, customers are entitled to a refund for the unused portion of these service agreements.

"I was told, send us a copy of the bill of sale and a cancellation form," Baker said.

Nissan-Infiniti of San Francisco had sold her the policy. It agreed to refund her $2,500 for the unused portion.

"And I waited for a while because I know it takes a while for these things to happen," Baker said.

However, months later, still no refund. She called Nissan. When she called again, Nissan said the dealership had been sold.

"And the new company is not honoring refunds," she said.

Joan explained the new owners were still responsible. Nissan said it had none of her paperwork.

"They lost the application, they lost the bill of sale," she said.

She sent in all the forms again, but still got nowhere.

"Finally I decided it was time to call 7 On Your Side," Baker said.

We contacted Nissan. It said the dealership just came under new management, which located her paperwork. And sent Baker a check for $2,500. The general manager said "I have put new procedures in place for all departments to ensure customer issues are avoided. It is very unfortunate this happened and I am very glad Ms. Baker received her refund."

"I'm glad 7 On Your Side is here. You people do a lot of good work for people," Baker said.

If you have purchased a service warranty and want to cancel it, you may be entitled to a refund too. Click here for more information on your rights under the law.