Am I A Victim Of Dealership Fraud? Seeking Advice On Legal Action

Hi Reddit,

I’m in a tough spot and need advice on whether I should pursue legal action regarding what I believe is dealership fraud. Here’s my story:

I’m 27, and in April 2024, I financed an Infiniti Q50. As a first-time buyer at this dealership, I had no assistance and fell for common sales tactics. I was told a better interest rate required a Vehicle Service Contract (VSC), so I signed without realizing the consequences.

The car, a used model, turned out to be a nightmare. Within the first month, I dealt with multiple major issues: bad rotors, an oil change, a dead battery, and a shredded belt that nearly destroyed the coolant reservoir. Despite these red flags, I paid out of pocket to fix everything.

In September 2024, a freak accident totaled the car—my tire fell off while driving. Thankfully, a patrolling police officer witnessed the incident and helped with the report. I went through the process of contacting my insurance, lien-holder, and VSC provider (EasyCare). Insurance paid off most of the loan, and I paid the remainder.

Here’s where it gets messy: 1. I tried canceling the VSC for a prorated refund. EasyCare directed me to the dealership. 2. I contacted the dealership consistently, but they delayed and ignored my requests. Finally, this week, I received an email from the finance director showing a screenshot of what appeared to be the cancellation initiation, dated for January 4, 2025. 3. I asked if the refund would reflect back to September, when I first requested cancellation. No one could answer, so I contacted EasyCare directly.

EasyCare informed me that the VSC was already canceled in September because my lien-holder notified them of the total loss. They also confirmed that a prorated refund check was mailed to the dealership in October 2024, and the check would have arrived at the dealership by no later than December 2024.

Now, the dealership claims no knowledge of the refund. Meanwhile, my lien-holder penalized me for an outstanding balance—the same amount as the VSC refund.

This situation has been a nightmare. I feel deceived, and I suspect the dealership may have pocketed my refund. At this point, I want to pursue legal action, but I need advice: 1. Would this hold up in court? 2. Am I entitled to compensation for the stress, financial penalties, and time spent resolving this? 3. Any tips on how to proceed from here?

This experience has been awful, and I’ll never trust another dealership for a VSC. Any advice or insight would be greatly appreciated. Thank you!