Legal Question in Consumer Law in Florida

I purchased a car through a car loan place. I then took out a loan through my credit union. A pay off amount was agreed upon with the car loan place and the credit union. There was a time limit. The credit union sent a cashiers check to the car loan place. They kept the money. But, they said the pay off was no longer valid because they received the check late! They said they accepted the check as a payment, not a pay off. Now they are trying to tell me I have to pay all the interest. But I don't understand how I owe interest if I paid off the principal! How do I resolve this? The amount of interest is more than the car is worth!


Asked on 1/11/11, 11:18 am

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

The payment from the credit union should have been sent via overnight express, with interest paid to the date of delivery. This way you would have a receipt as to when the payment was received. If the interest is truly more than the car is worth....then the car loan place may be guilty of usury violations. Take all of your paperwork, copy it, write a letter to the loan place telling them your position. send it registered mail, and keep the recept.

If they don't back off, then take them to small claims court. Be prepared with all of your documents, and notes as to who said what, when they said it. Get a statement from your credit union. The judge will decide whose story makes the most sense. The court will be able to tell if this place is a scam, taking advantage of people like you.

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Answered on 1/16/11, 2:57 pm


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