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Dwayne B.
Dwayne B., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 32369
Experience:  Practicing for over 20 years and handled many cases and trials for consumers.
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I receive written notice from a car dealer ship that I owed

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I receive written notice from a car dealer ship that I owed only $718.96 on the balance of my loan for my car, .I went on line and called them to check to see if this was correct .I was told that it was ,so I sent them the balance of $718.96. will I be legaly responsibale for the remainder of the loan?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. What was the actual balance? Did the dealership sent you the release of lien? Thanks.
Customer: replied 3 years ago.

the actual balance was $11,300.81, this was early pay off of the vehicle. I was sent a letter saying that the payment that was received was not enough to pay off the existing loan and that I owed a balance of $718.96. I went on line checked the balance of the exsiting loan on line, it showed the balance of $702.66, so I called to verify what the loan balance was. I was told that ,because of interest being applied that day now the balance was $718.96 and that this balance would be good up until the 24th of July. I was told how to send the balance, by Western union, I was given the city code and a state code. and was told to make sure the account # XXXXX on the western Union paper and that I would receive my title in 4 days. I checked the computer daily to see had the amount been posted. it was posted about 2-3 days later , I called also to make sure they had received the money for the $718.96.

Thanks. I'm going to opt out I believe you'll be better served by an expert specifically versed in this area. Please do not respond to this post as it will only slow the process of such an expert picking up your question. Take care.
Hello and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

Unfortunately, if they catch the mistake and choose to pursue it then you would still be held liable under the original terms of the contract.

While they told you an incorrect amount to pay off the loan, your argument would have to be that this created a new contract and since you paid what they represented was owed, they are now bound by the new contract.

The law, however, can allow them to escape from this "new contract" using a defense known as "mistake of fact". There are some other defenses as well but they all key off of the "mistake of fact". In essence a mistake of fact means that a contract can't really be formed because the other party was operating under an incorrect understanding.

At some point (usually around 4 years), depending on what state you are in, the statute of limitations will pass and after that time they can't come after you for the additional amount but until that time they are still able to pursue it.
Dwayne B., Lawyer
Satisfied Customers: 32369
Experience: Practicing for over 20 years and handled many cases and trials for consumers.
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