What fees are considered to be excessive regarding a car loan and repossession?

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What fees are considered to be excessive regarding a car loan and repossession?

I thought my car loan was paid off. There was $180 left in interest. I got a new cell phone and never gave it to them because I thought the loan was paid off. I also ignored their mail because of all the junk mail they sent me. 6months went by and they could not get a hold of me so they repossessed my car. Now they say that I owe $2000 to get it back. I admit I didn’t pay them for 6 months but how they got $2000 from $180 is insane to me. I bought the car new, paid them for 5 years, and they’re gonna charge me $2000 in fees over $180. That’s immoral. I would gladly pay them $500.

Asked on November 12, 2010 under Bankruptcy Law, Ohio

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It certainly does sound a bit excessive but I am guessing that they are charging repossession fees as well as interest and possibly storage fees.  I would seek help from your state Attorney General's office in negotiating this matter down for you and in verifying the fees that you seem to have been charged.  They can give you some insight as to what is excessive and what is allowable.  Repossession based upon that little in interest also seems a bit harsh.  You definitely owe something but what will remain to be seen. If they can not help then seek legal help in your area. Or a new channel that takes on these type of consumer matters! Good luck.  


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