Complaint Review: Transouth

I purchased a 1996 Ford Mustang from AUTO PALACE in San Jose California. In order for me to buy the car I had to agree to a $1500 three year warranty, because of the loan. Anyways my Mustang started to leak water 2 weeks ago. I thought it was covered in the warranty. But come to find out the warranty was never placed yet I was still charged an extra $1500. This is really upsetting me. Who can I contact to report them. The car lot I bought it at says it is the loan companies fault. I have called them, they say they are working on it. About two weeks now!!! HELP PLEASE