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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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i bought a boat in 2002 which was $35,000. In 2003 I put down

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i bought a boat in 2002 which was $35,000. In 2003 I put down over 22,000 in lump sum. They told me i would have no payment for several years with that down payment. I received a statement every month showing I owed $9019. All my credt reports show $9019. the statements all show 0 interest. they contacted me recently and said i owe them 22,000 because i have $11000 in interest for the past 10 years. I told them I was never informed of this. they said thats what I owe. all the statements I received showed no interest or baXXXXX XXXXXing or accruing. do they have a right to do this and its over 10 years
Thank you for the post, I am happy to assist you by answering your questions. I want to make sure I understand, you purchased a boat in 2002 for $35,000, paid $22,000+ at that time as a lump sum, but made no additional payment since?
Customer: replied 3 years ago.

yes, thats correct. i received a statement every month showing 9019 as balance and it had no other fees and 0 in interest area. all my credit reports showed 9019 as the balance

thank you Dianne, am I correct to understand that none of these statements list a payment due date?
Customer: replied 3 years ago.

no there is no payment due date


 

Thnak you Dianne, because there was never a due date established for payment, you could argue that the contract is unenforceable at this time due to the expiration of the statute of limitiations. Does the seller have a lien on the boat?
Customer: replied 3 years ago.


yes they do

Thank you Dianne, this is a bit of a wrinkle. While true that there is no payment schedule on the debt, there remains an outstanding lien that can be foreclosed upon. Does your loan agreement contain a right of acceleration?
Customer: replied 3 years ago.


dont know i have to look. i was going to start making the regular payments to pay off the 9019 that was continuously stated but now they tacked on 11,000 more in interest. thats what im fighting about because the bills they sent me say 0 interest on it

Thank you, XXXXX XXXXX be clear, your loan does not state any interest? I know your statements do not reflect interest, but does the loan agreement?
Customer: replied 3 years ago.


i have to find the loan agreement. havent looked at it in years but if they were charging me interest wouldnt they have had to show it on my monthly statements they were sending me. and shouldnt they have shown the loan principal growing because i wouldv done something about it this is like a shock that came out of nowhere

Yes they should have shown you the interest rate calculations but the failure to do so would not relieve you of the liability for the interest.If your loan agreement does call for interest, then unfortunately you would be liable for the same, and it would not be a defense to claim that they never reminded you of the interest or the statments did not reflect interest. You could advance the argument that the failure to actually show you the interest but to misrepresent the loan balance as only involving interest should relieve you of the interest liability for interest already accrued, essentially arguing that they were acting in bad faith. Please let me know if this does not answer your questions or if you have any follow up questions. If I have answered your questions, please remember to positively rate my answers.
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Customer: replied 3 years ago.

i received a modification agreement from them because i oriignaly asked for a lower interest rate to pay off the balance. they sent me an agreement stating my balance is 9019, and my new payment is 372/month for 30 months. they say nothing about the additional 11,000 in interest. it also says after the 30th payment there is a final payment amount to be determined. im going to ask what that is but if they sent me the agreement like this im assuming this is all i owe. what do you think

It would appear that is the case, but you should ask them to clarify so that there are no misunderstandings.
Customer: replied 3 years ago.

im going to ask what a final payment means but if i owed the 22,000 that they originally said, they would have had to put that as the amount owed, is that corrrect? and the payments would of course be over a longer period of time

Generally yes, but there is a doctrine in law called obvious mistake or obvious error and the failure of one party to an agreement to accurate state a sum owed, when such error is obvious does not give rise to forgiveness or inability to enforce that debt. this is why I was suggesting that you should clarify the statement to be sure.