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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
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Experience:  Experienced Licensed Attorney
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I needed some cash. So, a friend of mine suggested pawning

Customer Question

I needed some cash. So, a friend of mine suggested pawning my car. I called several Pawn shops in the nearest city (Bakersfield, CA). I got several “we don’t do that.” But the last one I called said: There’s a company in town that does loans on cars named Fast Cash – and, it was fast cash. I walked out with $2,600. about one week later I paid it down $1,000, leaving me owing $1,600 on the principal. When I got my final payment calendar, I saw where they were charging me $7,000 in interest. I took another look at my contract. And lo and behold, somehow they got my signature agreeing to that.
My Question is: am I going to remain obligated for the full $7,000 !? Isn’t that just plain usury ?
Submitted: 9 months ago.
Category: Legal
Expert:  Alex J. Esq. replied 9 months ago.

Hello. My name is***** am a US licensed attorney and I will be happy to answer your question.
I am sorry to hear about this unfortunate situation.
Please note, I cannot comment on your specific situation, as this services is only limited to general information and for any legal advice / legal service you should contact your local attorney.

Unfortunately, usury laws only apply to private lenders and business specifically licensed to lend money, as part of their business, such as banks, finance companies, pawn shops, etc...are specifically excluded from the usury laws, so unfortunate if the borrower signs a contract containing very high interest rate, the borrower would be legally obligated to repay any amount owed according to the contract and that is why it is always important to very carefully read and understand all the terms of the contract before signing it.

I am very sorry to provide you with this bad news, but please understand that I do have professional obligation to provide JustAnswer.com customers with correct answers, even when answer is not favorable to the customer.

I wish you the best of luck and God bless you!

Expert:  Alex J. Esq. replied 9 months ago.

Please let me know if you have any related follow up questions?
If not, please positively rate and accept my answer, so I can be compensated for my work.
Thank you.

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