5. SERVICE CONTRACT CANCELLATION OPTIONS
WHEN SERVICE CONTRACTS CAN BE CANCELLED BY THE OBLIGOR OR BUYER
BUYER'S RIGHT TO CANCEL: A buyer of a used vehicle with NO manufacturer's warranty my cancel the contract WITHIN 30 days of the receipt of contract and
receive a FULL refund if NO claims have been made.
If a claim has been made the buyer shall have a PRO RATA refund based time, mileage, or cost
of repairs as specified in the contract. If a buyer elects to cancel AFTER 30 days the buyer shall receive a PRO RATA refund based time, mileage, or cost
of repairs as specified. The contract must clearly state whether or not the buyer has an absolute right to cancel in the event the vehicle is lost, destroyed,
OBLIGOR'S RIGHT TO CANCEL: An obligor may include a cancellation clause under the following conditions:
GENERALLY: An obligor may cancel within 60 days of purchase provide written notice, with the specific reasons given, is mailed and postmarked
before the 61st day and a full refund is given with 30 days of cancellation. The cancellation date is deemed to be 5 days after the
NON-PAYMENT: The obligor may cancel at any time for nonpayment but must mail notice of cancellation stating the exact reason, refund any payment made using the same guidelines
for refunds as if the buyer cancelled. The cancellation date is deemed to be 5 days after the postmarked notice.
MISREPRESENTATION: The obligor may cancel at any time for misrepresentation but must mail notice stating the specific misrepresentation,
give a pro rata refund in 30 days.
CLAIMS MADE BEFORE CANCELLATION: An obligor must pay any claim made before cancellation if it is covered by the contract. A claim is considered made
if the buyer has taken the first step specified in the contract in making a claim.