Legal Question in Real Estate Law in California
June 2013 I got a title loan against my car in the amount of $5,000 and another one October 2013 in the amount of $1,000. I've made 6 payments, 3 in the amount of $460.21, and 3 in the amount of $534.13 so I've paid back $2983.02. I want to pay it off and they told me my pay off would be $6,600, why would I pay more then I borrowed?
Asked on 1/08/14, 7:03 pm
2 Answers from Attorneys
Anthony Roach
Law Office of Anthony A. Roach
Look at your contract carefully, there is probably a prepayment penalty clause in the document. By paying off the loan early, you deprive the lender of making money on the interest payments, and the prepayment accounts for the interest they would have made.
Answered on 1/09/14, 7:33 am
Terry A. Nelson
Nelson & Lawless
It's called 'interest' and early pay of penalty. Read your contract to verify they are charging only what is allowed. .
Answered on 1/09/14, 2:09 pm
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