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Infolawyer
Infolawyer, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 6867
Experience:  Licensed attorney helping individuals and businesses.
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I have an installment loan for a car and I've been paying

Customer Question

I have an installment loan for a car and I've been paying down the principal for quite some time now making extra payments it started off with 17000 and I'll get charged approximately $3 a day for the interest I paid down to about 8,000 and it was only taking out $1 a day in interest now all the sudden it's jump to $4 in interest and I'm wondering if I can sue them or understand what the heck is going on because I think they're scamming me like the average bank would try to in America these days the interest rate is 5.6
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What does your loan agreement state regarding prepayment of the loan, that is what dictates what they can charge you?
Customer: replied 1 year ago.
I'm not sure what I find this on the loan paper if so what specifically should I look for?
Expert:  Law Educator, Esq. replied 1 year ago.

It should appear under "Interest" or "Prepayment" on the loan agreement.

Customer: replied 1 year ago.
I'm going to have to either find the loan agreement or have them send it to me again before this can go any further I guess
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
Yes, you will need the agreement, because some loans have prepayment penalties and others do not. What they can do as far as charging for prepayment is governed by the terms of the contract and if it is not in the contract that they can charge it then they cannot charge you prepayment penalties.