Legal Question in Elder Law in California

My father is 83 and not in good health. He had a stroke in 2006 and has suffered mental loss since then. About a year ago, I became his power of attorney as he ran into financial difficulties. After ordering his credit report, I noticed he borrowed money from a bank in 2008. I asked him about it and he doesn�t know what he did with the money and my mother didn�t even know about the loan either. As collateral, the bank has a lien on his van (which is worth almost nothing). As of November, 2010 his drivers� license was taken away and his medical bills are mounting because of a recent heart attack. He doesn�t need the auto insurance anymore. But, before I cancel the insurance, can I ask the bank to take back the van and lower the loan amount? Also, they�re charging him 29% interest. Can the bank lower the interest rate?


Asked on 3/10/11, 9:44 pm

1 Answer from Attorneys
Aaron Feldman Feldman Law Group

I would ask the bank for a complete copy of the loan file to see if there are any irregularities. 29% seems awfully high rate for a loan secured by a vehicle. Is this a large reputable bank? What is the balance remaining? Unlike a home loan, a bank usually has the right to seek a deficiency from the borrower if the car is worth less than the balance. Do your parents have other assets the bank can go after? Depending on the information you obtain you may want to offer the car as full repayment and offer to waive any elder abuse claims for abusive loan practices. Good luck.

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Answered on 3/12/11, 8:00 am


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