Hidden Charges on the Extended Service Plan
I cancelled my Extended Service Plan (ESP)yesterday because I was selling my TT and discovered that the insurer charges a $50 termination fee that was NEVER discussed or even mentioned in pre-sales di...
Forum Discussion
We reached out to billcard yesterday and promptly refunded the $50 cancellation fee.
Here is the paragraph on the front of the first page of the terms and conditions for the Good Sam Extended Service Plan:
"Cancellation: In the event of cancellation of this Coverage within 30 days of the purchase of the Coverage, We agree to refund the full purchase price to You, less any claims paid or approved. If this Coverage is canceled beyond 30 days from the date of purchase of the Coverage, We will calculate and make a pro rata refund based on time, less an administrative fee of $50.00. Requests for cancellations may be received by phone or in writing. We may cancel this Coverage for: 1) Non-payment of the premium or 2) Material or Verbal misrepresentation or fraud in obtaining this Coverage or in the submission of a claim."
The cancellation fee is to cover our costs of seeking a refund from our Insurer, our Claims Administrator and the tax authority for the premium we paid on behalf of the customer that cancelled. I don't believe that this is a "hidden charge", as it is clearly disclosed on our website, as another member pointed out, and in our terms and conditions.
Here is the paragraph on the front of the first page of the terms and conditions for the Good Sam Extended Service Plan:
"Cancellation: In the event of cancellation of this Coverage within 30 days of the purchase of the Coverage, We agree to refund the full purchase price to You, less any claims paid or approved. If this Coverage is canceled beyond 30 days from the date of purchase of the Coverage, We will calculate and make a pro rata refund based on time, less an administrative fee of $50.00. Requests for cancellations may be received by phone or in writing. We may cancel this Coverage for: 1) Non-payment of the premium or 2) Material or Verbal misrepresentation or fraud in obtaining this Coverage or in the submission of a claim."
The cancellation fee is to cover our costs of seeking a refund from our Insurer, our Claims Administrator and the tax authority for the premium we paid on behalf of the customer that cancelled. I don't believe that this is a "hidden charge", as it is clearly disclosed on our website, as another member pointed out, and in our terms and conditions.
