Dealership Failing To Cancel Or Refund Warranty For Almost 8 Months

Location: California

Since April 2025 I've been in a battle to cancel the added Kawasaki Protection Plan warranty ($1499.99) and tire insurance ($899.99) with an Orange County-based motorcycle dealership. I've had to visit the office four times and called at least once every two weeks to request cancellation. However, each and every time, I'd wait two weeks or more without receiving any follow up, checks, or anything indicating that it was canceled. I'd call again, they'd say that for whatever reason it didn't go through, and the cycle would repeat again. After nearly 7 months of back and forth and false promises of cancellation, I called the Kawasaki customer service line to ask for their assistance in getting the dealer to cancel. Only after that did my cancelation go through, but only for the KPP, not the tire warranty. (They claim the tire warranty cancellation still "processing")

Now, one of the new problems I face is that the refund check isn't being sent out. I've contacted them an additional two times since cancellation and both times I was told that the check was written and would be sent with trackable USPS 2 day priority mail. The first time I called, I never received the link. The second time I called, they finally sent a link and the one I received has been "awaiting item" for the past 5 days. I recognize that it's a busy week for shipping, but I was told it would be sent out first thing the next morning.

The other problem is that in the contract cancellation terms it states "6. Refund Penalty: If Kawasaki does not pay or credit the refund owed to the Owner within thirty (30) days of Kawasaki’s receipt of Owner’s written cancellation request, a ten percent (10%) penalty per month will be added to the refund owed."

The dealer's finance representative initially said that the penalty would only be $8 and some change after 7 months, so it wouldn't be worth it. I immediately question his math and ask him to explain how he got that number as the warranty contract was valued at $1499.99. He admits his mistake and then changes his claim, saying that it only applies when the manufacturer or dealer cancel and not the owner. The wording seems very deliberate about the owner being the one to cancel but I'm being told that I just don't understand it.

Am I right in thinking that I'm owed the refund penalty? If so how can I go about this , and is small claims court the right path? I don't have much experience with this sort of thing and would appreciate any guidance you all can provide. Thank you