The answer is false. Read on to find out more.
Cancelling extended warranties
The warranty is a contract between you and the warranty provider.
For warranties with a duration of more than a year, the Supply of Extended Warranties on Domestic Electrical Goods Order gives consumers 45 days to cancel.
If you're within 45 days of purchasing an extended warranty and wish to cancel it, use this letter template.
As long as no claim has been made on the extended warranty, you should be able to cancel the warranty and get a full refund.
If more than 45 days have passed, the Regulations still allow you to cancel the extended warranty and get a pro-rata refund of the cost of the extended warranty, unless the warranty contained a term that said the warranty would come to an end on making a claim.
After 45 days, use this letter template to cancel your extended warranty.
Refunds on extended warranties
Where a refund is due, no deductions should be made from the warranty.
For example, you shouldn't try to recoup a discount that was given on the goods in return for taking out the warranty.
And, you shouldn't be given a refund in the form of vouchers (except if you paid or part-paid for the item with vouchers).
Buying extended warranties online
These cancellation rights don't apply to a warranty bought at a distance - such as online.
The Financial Services (Distance Marketing) Regulations 2004 already provide a 14-day cancellation right in these circumstances.