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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 99992
Experience:  Lawyer
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My husband and I saw a finance company about taking out second

Customer Question

my husband and I saw a finance company about taking out second mortgage to pay of dept
we did sign paper work only problem I have no photo id so they say it wont be completed till I get some we have changed our mind the company says even if we cancel we have to pay them 10,000.00 dollars I understand we should pay lawyer fees and office time but 10,000.00 is way to steep is the anything I can do
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.
What does the contract say about early termination?
Customer: replied 1 year ago.
It stars cancellation fee applicable anytime after signed acceptance and regardless of whether any monies have been paid or advanced to or for the client it's called annual loan maintenance fee
Expert:  Debra replied 1 year ago.
Are you saying that it says it's in the document and you read that before you signed?And does it say that the cancellation fee is $10,000?
Customer: replied 1 year ago.
The loan is for 25000.00 but they added another ten thousand called annual loan maintanance fee that is up and above interest we would be paying.
Customer: replied 1 year ago.
No money has been recieved by us from them we saw lawyer last night but because I don't have photo I'd he said they can't finalize transaction
Expert:  Debra replied 1 year ago.
But what I am asking is if the contract you signed said they get this fee.
Customer: replied 1 year ago.
It does but I didn't see that till I got home when I went in to sign papers they didn't give me time to read everything
Expert:  Debra replied 1 year ago.
They didn't point this out at all? What did they say would happen if you terminated early?
Customer: replied 1 year ago.
I asked if there was a penitaly if we paid off loan early we were told no penitaly would apply in the first 24 months
Expert:  Debra replied 1 year ago.
But you aren't talking about paying off the loan. You are talking about terminating now.What did they say would happen if you terminated early without paying the loan off?
Customer: replied 1 year ago.
They said if we terminate now even thow we have recieved no money we have to pay the ten thousand dollars to them
Expert:  Debra replied 1 year ago.
I think I had better answer now. If they told you that you would have to pay this and you still signed then you are liable for this amount as you agreed. But if they didn't tell you this and you didn't get a chance to read the full contract and only learned of this when you go home it is possible that a Court will set aside the contract on the basis that you didn't really know what you were signing and that when there is such an onerous provision it had to be pointed out.So I suggest as your next step you have a lawyer send them a letter asserting your position and saying you are happy to have a court decide.