What are a buyer’s rights regarding late payments for a rent-to-own transaction?
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What are a buyer’s rights regarding late payments for a rent-to-own transaction?
We have been renting to own for 5 years now. On the 60 month mortgage (in writing and notarized) monthly payments are $4361.40 a month. Also, there is a $25 late fee (when late in paying which has happened a few times but we paid). We’re buying at $17, 500 with an interest rate of 10%. The total is $22351.10 We just hit our 60th payment. We calculated everything and have a balance due of $667.10 Now, however, they are saying there is more interest because we made a few late payments. They are trying to charge us more and are threatening us. Can they charge these extra fees?
Asked on March 2, 2012 under Real Estate Law, Florida
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The company may not be keeping correct or accurate records or could simply be trying to scam you out of more money. The best thing to do is to file a consumer complaint with the entity who regulates this rent to own company (usually state attorney general or county or city prosecutor) and explain you feel the item should already be paid off by now and that you only owe x versus the y the company is saying you owe.
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