Legal Question in Credit and Debt Law in Minnesota

Automobile Repossession

Can an institution charge interest on a 3 year old repossession without having any contact within that period of time? Automobile was repossessed, insurance company fixed the damage that should have been covered under warranty, the auto was sold and there was no contact from the borrowing institution concerning an amount owed until one month ago. Now they want to charge interest from the time that the auto was sold until this month. Can they legally do that?


Asked on 6/29/99, 10:24 pm

1 Answer from Attorneys
Susan Freiman The Legal Clinic

Re: Automobile Repossession

Normally, a debt will have interest added to it, even if the creditor does not take agressive action to collect. However, there may be special circumstances in your case.

Do youself a favor and speak in person to a lawyer. if you can't afford one, ask Legal Aid for help. Most bar associations have a panel of lawyers willing to help for a reduced fee.

Good luck!

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Answered on 7/12/99, 7:44 am


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