What to do about a loan with exhorbitant interest charges?
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What to do about a loan with exhorbitant interest charges?
I have had a loan with a finance company for over a year. They allow refinances in small amounts after 3 payments. My last refinance was less than $150 with a balance of $1000; I have made payments of $145 for several months. I called for a payoff and was told the loan goes to $2600 the amount for 18 months, even thought the actual amount borrowed was less than $1000. The payoff would be $1600. How is this possible?
Asked on December 13, 2012 under General Practice, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I suggest that you consult with your local legal aid clinic or a consumer law attorney to see about whether the interest rate on the loan that you have written about is usurious under the laws of your state. If so, then you have an interest free loan.
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