State Law Guide - Updated January 2026
Texas F&I Product Cancellation Rights
Under Texas Property Code Chapter 348, 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
In Texas, you can cancel dealer add-on products at any time. 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.
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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 Property Code Chapter 348, Texas consumers have the right to cancel F&I products purchased from dealers. 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.
Refund Timeline
Once you submit a cancellation request, the dealer or administrator has 46 days to process your refund. Failure to comply may result in 10% per month penalty for late refunds.
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State-Specific Citations
Maximum refund amounts
$29 - Avg Texas refund: $1,100 - Potential 37x return
Frequently Asked Questions
Can I cancel my extended warranty in Texas?
Yes. Texas Property Code Section 348.408 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 Property 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.
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Based on Texas Property Code Chapter 348