Legal Question in Consumer Law in Tennessee

Car Purchase Problems

I bought a used SUV in August,

trading my old car. I signed a paper

agreeing to my car trade in and that

a loan would be made for the

remaining money owed. There were

no terms to the loan given at the

time. I was told I would be given a

payment book so I could make

payments. I received no such book or

any notification of payments or

interest on the loan. I signed no loan

agreements. I heard nothing from

the car company until December

when the car company called and

threatened to take the car if I did not

come in and sign the loan papers. I

went in. I discovered they had sold

my trade in car only days after I

traded it in, so I could not get that

back. I signed their loan contract at

that time. I have kept up with the

payments. I discovered I had signed

a 20% APR loan and will be paying

around $30,000 dollars for a

$12,000 car. They are not reporting

my payments to the credit reporting

companies. I am wondering if they

did anything wrong in letting me

have the SUV for those 5 months

without presenting a loan contract?

Asked on 6/14/08, 12:29 am

1 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Car Purchase Problems

You signed a loan agreement with no terms. Then, you willingly signed a 20% loan for $30,000 on a $12.000 car. Now, you ask, what is it that -they- did wrong?? I can just see you trying to explain this to a judge. Or is there more to the story you didn't tell me, like, they put a gun to your head to get you to sign? You used very poor judgment, and it's not clear that the courts would rescue you from your predicament.

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Answered on 6/14/08, 12:39 am

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