State Law Guide - Updated January 2026
California F&I Product Cancellation Rights
Under CARS Act (California Consumer Financial Protection Law), California gives you the right to cancel and receive refunds on F&I products. You have a 30 days free look period for full refunds. Dealers who fail to comply face Treble damages (3x) for willful violations.
Quick Answer
In California, you can cancel dealer add-on products at any time. During the first 30 days, you receive a full refund with no fee. Refunds must be issued within 30 days. You can sue in Small Claims Court for up to $12,500.
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Key California Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Free Look Period | 30 days | Full refund within 30 days, no questions asked |
| Cancellation Fee | $0 (prohibited) | Dealers cannot charge any fee to cancel |
| Refund Deadline | 30 days | Must receive refund within 30 days of cancellation request |
| Pro-Rata Refund | Required after free look | Entitled to unused portion based on time or mileage |
| Penalty for Non-Compliance | Treble damages | Recover up to 3x damages if dealer refuses |
Free Look Period
30 daysCancellation Fee
$0 (prohibited)Refund Deadline
30 daysPro-Rata Refund
Required after free lookPenalty for Non-Compliance
Treble damagesWhat California Law Requires
Your Cancellation Rights
Under CARS Act (California Consumer Financial Protection Law), California consumers have the right to cancel F&I products purchased from dealers. During the free look period (30 days), you receive a full refund with no cancellation fee.After this period, you're still entitled to a pro-rata refund based on unused time or mileage.
Refund Timeline
Once you submit a cancellation request, the dealer or administrator has 30 days to process your refund. Failure to comply may result in Treble damages (3x) for willful violations.
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State-Specific Citations
Maximum refund amounts
$29 - Avg California refund: $1,200 - Potential 41x return
Frequently Asked Questions
Can I cancel my extended warranty in California?
Yes, you can cancel at any time. Under the CARS Act (effective October 2026) and Civil Code 1794.41, California gives you a 30-day free look period for a full refund. After that, you're entitled to a pro-rata refund based on unused time or mileage. Dealers cannot charge cancellation fees.
What is the CARS Act in California?
The CARS Act (California Consumer Financial Protection Law) effective October 2026 is the strongest dealer add-on protection law in the nation. It requires clear disclosure of all F&I products, prohibits cancellation fees, mandates 30-day refunds, and allows treble damages for willful violations.
How long does a California dealer have to refund my money?
Under California law, dealers must process your refund within 30 days of receiving your cancellation request. If they fail to do so, you may be entitled to penalties including treble damages for willful violations.
Can California dealers charge a cancellation fee?
No. California Civil Code 1794.41 prohibits cancellation fees on service contracts and similar products. Any fee charged is illegal and recoverable.
California Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
Compare Other States
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Based on CARS Act (California Consumer Financial Protection Law)