Legal Question in Civil Rights Law in Louisiana

About a month ago I started a Lease to Own on a 1992 SingleWide Trailer in a park. I put down 1200.00 and the principle left is 15960.32. when myself and husband went and looked at the trailer I asked the man how much was the total price on it and he said right over 17000.00. I told him that was fine but he never mentioned any extra interest on the trailer. I told him that i could pay 400.00 towards the trailer rent and the 150.00 for lot rent and the 30.00 for insurance. The next day we (my husband and I) signed the papers and still he never mentioned the interest. Now looking at the lease agreement they have me paying anywhere from 89 to 95 percent interest. My principle after the 1200.00 down payment is 15960.32 and the cumulative interest is 15201.36. What can I do legally?

If I looked everything up correctly the most he could charge me in interest is no more that 14%, is this correct?


Asked on 4/12/10, 11:52 am

1 Answer from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

You do not mention how long you are paying on the "rent-to-own." No one sells something on time without charging interest, and even with a typical purchase with a mortgage, one ends up paying double what the original loan was for since the interest is paid first and very little is credited to the principle. The bad thing is rent to own does not make you owner until all the money is paid whereas with a conventional purchase with mortgage, you own it and they have a lien against the property. So in rent to own, if you miss a payment, they can evict you just as if you were renting an apartment. What was written in the contract you signed is what is binding.

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Answered on 4/18/10, 6:51 am


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