6. BUYER'S RIGHTS WHEN A SERVICE CONTRACT CLAIM IS DENIED

All too frequently somebody whose car needs major repairs is told by their service contract obligor, administrator, or both that they will not pay for repairs because of one excuse or another. Or the buyer is bounced between the obligor and the administrator with "it is not up to us, you need to talk to the other guy" ploy.

THE OBLIGOR HAS THE BURDEN OF PROVING THE CLAIM IS NOT COVERED: In the normal breach of contract case the plaintiff has the burden of proving that a claim is covered by the contract in dispute. But, with an auto service contract, the buyer only needs to prove three things:

1. The buyer had a contract with the obligor.
2. The buyer made a claim that was denied.
3. The dollar amount it will cost to pay for the repairs.

BURDEN OF PROOF THEN SHIFTS TO OBLIGOR: Once the buyer has proved those three things, the obligor must show that the claim was not covered.

OBLIGOR MUST PAY BUYER'S ATTORNEY FEES: If the buyer prevails in a lawsuit the obligor must pay the buyer's attorney fees.