Can an automobile finance company add money owing to the balance of a car loan?
Question Details:
I got a 36 month car loan 1/2006 at 18% interest. The car is suppose to be paid off in 12/2009. Now the finance co is saying that there is more money owed (additional 900$) because some of the payments were late. They are saying the interest is added daily. Is this correct? I thought the finance charge was already figured into the payment and length of the contract.
Business Law Answers
I am a lawyer in CT and practice in this area of the law. Your obligation to pay the finance company is govered by the contract that you signed when you got the loan. The interest rate is very high, but not against the law. I would need to see the contract to determine whether or not you have to pay the finance charge. I suggest that you make an appointment with a lawyer to review the contract. most lawyers will meet with you the first time for free.
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