Legal Question in Credit and Debt Law in Maryland
I bought a new vehicle on 8/31/10. I traded in the my old vehicle that had a pay off of about 2K and I also added another loan pay off for my motorcycle for about 3K. The vehicle I traded in has some aftermarket parts on it that I told the dealer I wanted but I needed them to be taken off (Parts- $688 Headers and a $350 tow hitch). A few went by and I have called over and over again about the parts but I can not get anyone to call me back even a manager. On 10/15/10 I received the title for my motorcycle with a check of $1,500 with it. I called bank to ask why I got the check and I was told it was a refund for over payment. I was confused so I asked to speak to a manager. The manger walked me threw everything saying I got it due to being a year ahead on my payment. I thought great so I cashed the check and had some fun.
On 10/19/10 I received a call from the dealer I bought the new vehicle from. They finance person told me they made a mistake and only sent out one check to pay off both loans and the check went to the bank for my motorcycle and the refund was for a payoff for my trade in. They also said I had 3 days to pay the money back. I told them I would need to time to move money around. The finance person told me to call their general manager.
I called and left a voicemail for the general manager. An hour later I got a call back. I explained my situation to the GM. The GM right off the bat was very rude but I held my tongue because I wanted to be fixed even after he called me stupid and yelling at me. I told the GM that I can and will pay the money back I just need a little bit more time to get the money together. It will take at least 5 business day to even transfer the money from an out of state account. The GM said he didn't care that he wants the money in 3 days and I also have to pay the extra interest that the vehicle has accumulated from 8/31/10 to now. If I do not pay the money in 3 days they will sue me with an extra interest of 43% per month plus attorney fees.
Can they do this to me? I didn't send the check to the wrong bank.
I did find out they did sell my trade in vehicle already with out a clear title. I also never got the parts either. Is there anyway I can get the parts for my vehicle or at least what they are worth? I did my the parts from that dealer so they are factory parts.
1 Answer from Attorneys
A few thoughts that may help you understand your rights --
-You knew or should have known that you weren't entitled to the extra money, so you shouldn't have spent it. If you went through the payments with the bank, you should have realized that the last payment was a double. Regardless, you should have done some more checking around. You will have to pay the money back, regardless of the mistake.
-If you signed a contract that says you will repay the money in 3 days, you need to pay it back in 3 days.
-Even if you signed a contract that says you repay the money in 3 days, there are "usury" laws in place that limit how much interest a company can charge you. "Usury Law" is a very complicated area of law with many exceptions; however, generally speaking there are 3 caps of interest in Maryland -- the "legal rate", which is 6%; the "judgment rate", which is 10%, and a general cap of 24% interest. I would need to read your finance agreement to understand a little better about the 48% interest he claims.
-You can sue the dealer for return of the parts or the cost thereof. If you didn't get it in writing that they would return these parts to you, it will be difficult to prove that a contract was in place, but not impossible. If the dealer sues you for return of the $1,500, you can "counter-sue" in your answer to the lawsuit and claim that they owe you money for the parts. If you win, the amounts owed will offset.
Best of luck.*****The above is for informational purposes and does not create an attorney-client privilege.******
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