Legal Question in Credit and Debt Law in California
Can I be charged interest on money I never received?
I was eligible for a student loan and when I received the loan check from the school I was attending I never cashed the check. I had transferred schools and no longer attended the school issuing the check. I believe the business office mistakenly sent the check and for fear that I�d be charged for the money I held onto the check. I asked that the check be cancelled and that my account show no balance. After I kept receiving bills for the outstanding amount on the check I sent the check with �void� written all over it back to the school. The account was then adjusted to take off the amount of the check but now the school claims I owe money for the interest that accrued. However, I was never in possession or control of the money. The check was never cashed by me and I presume it was in the possession of the school all that time or gaining interest in the schools bank acct. Am I responsible to pay interest on money I never had control or possession over?
2 Answers from Attorneys
Re: Can I be charged interest on money I never received?
In a word,"No" you are not responsible for any interest, however, I would take a good look at the agreement you signed to get the loan and see what it says about your obligation to pay interest. That would govern your relationship with the school about the loan.
Re: Can I be charged interest on money I never received?
Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation including any letters, notices, and lawsuits. We handle cases throughout California. We can review your documentation by fax and speak with you by phone.
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