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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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we paid off the loan and all late charges on our 208 peterbuilt

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we paid off the loan and all late charges on our 208 peterbuilt truck and now the want $5,000 in intrest on the late payments. Is this legal
Thank you for your question. Please permit me to assist you with your concerns.

If I may ask, who is requesting such a fee? Was this a private loan? Was the late fee or late charges listed in the agreement that you had with this person or entity? Where did that person or entity come up with such a number, or was that a purely arbitrary number?
Customer: replied 3 years ago.

Paccar financial . Yes the late fee was stated. No that was the amount they stated over the phone. Yes this was a private loan with the truck as security.

Thank you for your follow-up, Clarence.

 

The reason I asked about the amount is because any loan is ultimately a contractual agreement. Both parties, you and the lender, are bound by the terms. If there is a late fee or costs, and you were late with payments, the lender can demand that you cover such costs. However, you can legitimately review the contract for yourself an calculate the fee, or ask the lender to prove to you how they came up with the number and see if any errors were made. If not, it is a valid and an enforceable request. But if you find errors, you can demand they make modifications since you are not contractually obligated or required to pay more than what the contract states.

 

Hope that helps.

Customer: replied 3 years ago.

So what your saying is they can charge late fees and then intrest on those fees?

Clarence,

 

Provided that they disclose the charges up front AND you do not pay the late fees when accessed, those late fees can accrue interest fees as well. That, by itself, would not violate the law provided that the lender expressly and properly disclosed such fees and such potential rates in their agreement that you signed with them.

 

 

I am sorry!

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