What to do to get a Refund for a Vehicle Service Contract

There have been several articles in the news related to consumers that purchased a Vehicle Service Contract (VSC) from a Direct Marketer and have had challenges getting a refund.   The consumer may have purchased the VSC on the web or in response to a mailer or a call.

Many states have specific statutes that allow a consumer to obtain a refund for a service contract.  In addition, many states have specific statutes related to licensing of a VSC Provider.   Often the seller of the VSC is acting as just the marketer and not the registered and licensed provider.  Generally, the Provider’s name and contact information is listed on the Service Contract the consumer receives when making the purchase.  In addition, the name of an Insurance Carrier may be listed if the policy is backed by insurance (Contractual Liability Reimbursement Insurance or Service Contract reimbursement Insurance).

The Provider, also referred to as the Obligor in some states, has the ultimate responsibility to provide a refund to the consumer if the consumer is not able to obtain a refund from the marketing company.

If you have an issue obtaining a refund from a company marketing Vehicle Service Contracts check over your service contract document and look for the name of the actual provider.  These companies are regulated by many states and will normally intervene if you have an issue with getting a refund from the marketer or provide you with the refund.

Not all companies are created equal and many quality marketers, providers and insurance carriers offer VSC’s to consumers.  These companies provide a high level of service when needed and promptly process any refund requests.


Michael Frosch
President, Personal Safeguards Group, LLC