Legal Question in Consumer Law in North Carolina

Can Finance Company lawyers Fees Be Included in Mortage PAYMENT?

6 months ago I defaulted on a loan. After curing the default, I was notified six months later by the finance company that I owed 500.00 dollars in attorneys fees. I was told by the company that this is a part of my house payment. I am current in my house payment, but am told by the finance company that they will be taking me to court to repossess my home if I don't pay the accrued lawyers fee to them. My last house payment sent to them, they took money out of my house payment to pay on the attorney fee. Is this legal, and is it legal to say that this lawyer fee is my house payment as well. No were in my contract does it state this.


Asked on 12/18/05, 4:58 pm

1 Answer from Attorneys
Lynn Coleman Attorney-Mediator

Re: Can Finance Company lawyers Fees Be Included in Mortage PAYMENT?

It is often permissible for creditors to add these fees to the amount owed. You do not mention if your creditor sued you and/or obtained a judgment against you. If your creditor got a judgment against you it probably included attorneys fees and this is legitimate. Otherwise, it is possible the attorneys fees would be classified as "costs of collection" and would be covered under the default provisions of your loan. I cannot be more specific without seeing the loan documents and knowing more facts.

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Answered on 12/19/05, 9:54 am


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