State Law Guide · Updated January 2026
Many F&I products allow cancellation for a pro-rata refund, but the contract, product type, timing, claims, and state law all matter.
Texas Extended Warranty Cancellation Guide
Under Texas Occupations Code Chapter 1304, Texas 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 10% per month penalty for late refunds.
Quick Answer
Cancellation rights in Texas depend on the product and contract. Upload yours to see which add-ons appear cancellable. During the first 30 days, you receive a full refund (minus up to $50 fee). Refunds must be issued within 46 days. You can sue in Small Claims Court for up to $20,000.
Purchased F&I products in Texas?
Check your rights under Texas law
Key Texas Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Free Look Period | 30 days | Full refund within 30 days minus up to $50 fee |
| Cancellation Fee | Max $50 | Fee cannot exceed $50 regardless of product cost |
| Refund Deadline | 46 days | Refund must be issued within 46 days of request |
| Late Penalty | 10% per month | Add 10% monthly to refund amount if late |
| Pro-Rata Refund | Required | Unused portion based on time or mileage after free look |
Free Look Period
30 daysCancellation Fee
Max $50Refund Deadline
46 daysLate Penalty
10% per monthPro-Rata Refund
RequiredWhat Texas Law Requires
Your Cancellation Rights
Under Texas Occupations Code Chapter 1304, some F&I products sold in Texas may be cancellable or refundable, subject to their contract terms. During the free look period (30 days), you receive a full refund. After this period, you're still entitled to a pro-rata refund based on unused time or mileage.
Timeline
Once you submit your request, the dealer or administrator has 46 days to respond. Failure to comply may result in 10% per month penalty for late refunds.
Your contract may include cancellation rights that are easy to overlook. We identify the products, check the applicable terms and rules, and estimate what may be refundable.
A formal demand letter citing your state's exact statutes is harder to ignore than a generic email.
How It Works
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See What You May Be Owed Under Texas Law
Our tool checks Texas Occupations Code Chapter 1304 and state-specific provisions against your paperwork for free — then generates a formal f&i product cancellation letter if you want one.
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State-Specific Citations
Maximum refund amounts
What you'll see before you decide
A document-specific answer, not a generic promise:
- The amount at issue, itemized
- The rules or contract terms that appear applicable
- What looks strong, weak, or needs more evidence
Free analysis first. The optional letter comes after you see the result.
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Check each charge and see an itemized estimate before deciding whether to buy a letter.
Frequently Asked Questions
Can I cancel my extended warranty in Texas?
Yes. Texas Occupations Code Section 1304.1581 gives you the right to cancel any dealer add-on product at any time. During the first 30 days, you receive a full refund minus a maximum $50 cancellation fee. After that, you get a pro-rata refund.
What is the maximum cancellation fee in Texas?
Texas law caps cancellation fees at $50, regardless of how much you paid for the product. If a dealer tries to charge more, that's a violation of Texas Occupations Code.
What if my Texas dealer doesn't refund on time?
Under Texas law, if the dealer fails to refund within 46 days, you're entitled to a 10% per month penalty on top of your refund. This penalty continues to accrue until they pay.
Where do I file a complaint against a Texas dealer?
You can file complaints with the Texas Department of Motor Vehicles (TxDMV) or the Texas Attorney General Consumer Protection Division. Both agencies investigate dealer violations.
Texas 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
See how Texas's laws compare to other states:
See What You May Be Owed in Texas
Check your contract against Texas cancellation rules and see which products appear refundable.
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Optional letter only if you act · Texas Occupations Code Chapter 1304