I had a vehicle leased for 36 months. After the first year, I was behind by 3 months and voluntarily surrendered the vehicle so it would not be repossessed. Now, I've gotten a bill saying that I owe not only the back payments and an early termination fee, but also the amount of the rest of the lease. Am I really responsible to pay the rest of the lease on a car I've already surrendered? I thought that was the purpose of the early termination fee. Please help me out.
2007-11-10 08:10:04 · 7 answers · asked by TruthSeeker 4 in Politics & Government ➔ Law & Ethics
asorry but you have to pay it or they will send to collections. you do not want that hassle.
2007-11-10 08:17:42 · answer #1 · answered by Michael M 7 · 0⤊ 0⤋
Sounds like a dilly of a pickle.
The answer largely depends on the language of your lease. Without looking at the lease, I would say that you are right, you are not responsible for the remainder of the lease. The termination fee should operate to relieve you of your remaining obligation.
The company requiring you to pay the entire lease is a negotiation strategy. When you are ready to pay the company off, write the check for the amount of back payments and the termination fee (optional). On the check write "satisfaction of liquidated debt." This is called an accord and satisfaction.
Depending on which state you live in, If they cash it, it's considered a settlement and they cannot sue you for any other amount.
If for whatever reason this goes to a collection agency, be sure to ALWAYS DISPUTE THE VALIDITY OF THE CLAIM. You will have 30 days to dispute, this will mitigate any damage to your credit and it will secure your rights against the creditor.
Good luck!
2007-11-10 16:38:34 · answer #2 · answered by akbar hakimbisatrkhandeep patel 2 · 0⤊ 0⤋
Well, it doesn't seem logical that they could charge both a termination fee and the balance of the lease, but it's possible. Maybe the termination fee is designed to reimburse them for preparing the car for resale.
Your rights and obligations are spelled out in the written lease agreement. If you don't understand it, see a lawyer to review it for you.
2007-11-10 22:09:42 · answer #3 · answered by raichasays 7 · 0⤊ 0⤋
This needs an attorney. Was the reason you got behind due to not working or did you just decide to end the lease? There are times that people just change their minds about a lease so turn the vehicle back in. It is not due to a hardship but a choice.
2007-11-10 16:18:55 · answer #4 · answered by sensible_man 7 · 0⤊ 0⤋
Leases can vary in how they are handled as well as differences in laws between different states.
Do you even have a copy of the lease still? If so, I would advise reading it thoroughly or getting a lawyer to advise you on what you are responsible for.
Or, you can sit back and continue to let them ruin your credit and wait for them to sue you for the balance they claim you owe them. Good luck.
2007-11-10 16:15:50 · answer #5 · answered by bkc99xx 6 · 0⤊ 0⤋
Yes, you are responsible. What you signed was a contract for 36 months. It wasn't until you didn't feel like making the payments anymore. Yes, you will have to pay and you will be lucky if they don't sue you for the remainder of the payments plus interest that is due them.
2007-11-10 16:21:48 · answer #6 · answered by Robert J 6 · 0⤊ 1⤋
The contract governs the payments of the fees. Verify the stipulations if your are obligated to do so, if not, then deny the subsequent payments.
2007-11-10 16:18:10 · answer #7 · answered by FRAGINAL, JTM 7 · 0⤊ 0⤋