Klean Motors, LLC

My mother and I are title owners of a car that was purchased 4/20/2015 from Klean Motors LLC in Gurnee IL. At the time of purchase we bought an extended warranty from Klean Motors, last week my mom was hit and the car was totaled.
I contacted the warranty company to cancel the extended warranty and they directed me to call the dealership to resolve the issue with them.
I called and got the run around from Klean Motors, comes to find out after calling back to [redacted] Dealer Services (warranty company) I got connected to the National Sales Director. He said these guy never sent in the payment to activate the warranty so there was no warranty on record for us. Basically Klean Motors collected $1742 from us and never sent in any paperwork to activate the warranty. Now I am still getting a story from Klean motors that they sent a check in but will not disclose any info about the canceled check to the warranty company, for them to research whether or not there was an actual payment to activate the policy.
These guys are now trying to give us a pro rated amount of a warranty that was never activated and also keep the commission part of the cost of the warranty. According to [redacted] they are in agreement with us that the total of $1742 should be paid back to us since they never took action with [redacted] after Klean Motors collected our money.