I obtained a loan from CashCall, Inc in November of 2005. Unfortunately I have fell upon hard times and have been unable to make the minimum payment. I currently owe principal of $9,600 approximately, but they threatened to sue for $38,000 which would include the finance charges if I had paid it off over 10 years as expressed in the contract. Is it possible to sue for these finance charges??? I'm located in California.
2007-05-18 13:05:22 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Anyone getting sued should consult an attorney for legal advice. If you are in financial difficulties, there is probably a free legal services office in your area.
As a practical matter, though, I would say that you owe the entire $38,000. The contract you signed was presumably a loan of $9,600 in exchange for your promise to pay them about $315 every month for ten years. The whole purpose of the lawsuit is to force you to keep your side of the bargain.
2007-05-18 13:22:41 · answer #1 · answered by zygote222 5 · 0⤊ 0⤋
You can be sued for breathing. The question is: can they collect the finance charges you would have paid over the full life of the loan? That depends which states laws control your loan and exactly how the contract is worded.
Note: The fact you live in California does not necessarily mean California law applies to your loan.
2007-05-18 13:58:46 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
I would say Yes. You borrowed the money which they loaned you and you agreed to repay it back plus interest. When you owe the IRS money the interest is collected until you pay the back taxes, in a sense they are lending you the money owed.
You may be able to talk to them and work out a deal, but don't hold your breath. Cash Call and places like that are places to stay away from, you are paying a very high interest and I believe you could have done better at a bank, if you are paying over 11% interest you got suckered in. One word of advice " Chalk this up to experience, if you make the same mistake again chalk it up to ignorance"
If they are holding the car as security, just tell them to repossess
the car, there is one draw back to this and that is you are still liable for the difference in what they sell the car for and what you owed, if this is the case I would not let them charge me for the difference of what they say you owe, just tell them to take me to court. Chances are they won't as they don't want everybody to know what happened, doesn't look good. There is a web site that I have used before called "ripoff.com. You can post a story of what happened and they will send a copy of the posting to Cash Call and of course thousands of people will have the chance to read it. I have done it my self.
2007-05-18 13:31:23 · answer #3 · answered by John P 6 · 0⤊ 0⤋
It depends upon what state the contract is executed in. I would advise you to consult the original loan agreement to see in what state the parent corp. resides. You might want to call your local BAR association about attorneys in you area that will give a free consultations of your rights and how to proceed. Under current consumer finance agreements, they maybe able to collect unless you protect your rights now. However in many states this is considered preditory lending and is not allowed.
2007-05-18 13:25:56 · answer #4 · answered by Michael F 1 · 0⤊ 0⤋
you could't sue the credit card enterprise, yet they could desire to pay for all the expenditures that befell out of your card being stolen. they're additionally to blame for sending your card securely interior the path of the mail, so if it happens returned, i might say you will have a case against them. in the different case, i might assume that somebody is getting a carry of your mail till now you.
2016-11-24 22:55:04 · answer #5 · answered by ? 3 · 0⤊ 0⤋
You have broken your contract and they are legally entitled to sue
2007-05-18 13:19:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋