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Lucy, Esq.
Lucy, Esq., Attorney
Category: Legal
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Experience:  Lawyer
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I pawned my title to my truck .00 I've made 4 payments

Customer Question

i pawned my title to my truck for 2500.00 I've made 4 payments and want to pay it off early the pay off is higher they said they can collect all expected interest if loan had been carried to full term.
Submitted: 7 months ago.
Category: Legal
Expert:  Lucy, Esq. replied 7 months ago.
Hi, I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation. What, if anything, does your contract say about prepayment or penalties?
Customer: replied 7 months ago.
No early pay off penalty
Expert:  Lucy, Esq. replied 7 months ago.
Does it say there IS no penalty? Or just not mention one?
Customer: replied 7 months ago.
But according to predictor lending laws is this not illegal
Expert:  Lucy, Esq. replied 7 months ago.
It depends on what the contract says. There are a lot of things that aren't generally illegal but could be prohibited by the agreement you signed.
Expert:  Lucy, Esq. replied 7 months ago.
If the contract only says that you agree to repay the principle plus X% of interest, that's interest on the balance outstanding on the loan. They wouldn't have any basis for arguing that you owe interest beyond that date unless the contract provides for it (which is very rare). Ask them to show you where the agreement says you have to pay the interest even if the loan is paid early. If they can't, they need to accept your payoff amount and release the title. The other option, if you need the title now, is to pay what they're asking, write "Under protest" on the check, and then sue for a refund.
Expert:  Lucy, Esq. replied 7 months ago.
Did you need any more help with this?

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