Legal Question in Credit and Debt Law in Illinois
Excessive Interest Car Loan
My future son-in-law bought a car some years ago. The intrest is unheard of for a car. He has paid the initial cost of the car and then more than a few thousand dollars extra. Still they say he owes 5,000 more dollars. The car isn't worth that. If he stops paying and lets them reposess the car does he still owe the outrageous balance?
He has lost his job and is having a hard time finding another and can't collect unemployment comp. His credit is shot already so I said if they repo the car who cares? Please advise. Thank you very much.
1 Answer from Attorneys
Re: Excessive Interest Car Loan
The short answer is yes. Trust me when I say that your son is not the only one who is paying outrageous interest on car loans. I have several clients who are in the car sales business and they are always talking about how many people are "up side down" on their loan. Which means they owe much more then the acutal car is worth. However, there is nothing illegal about it.
To be honest it would probably be best if he can sell the car himself, use that money to pay down the loan and then make some sort of monthly payment plan with the finance company.
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