Legal Question in Credit and Debt Law in North Carolina

I have a loan through carmel finiancial in IN and i live in NC. The terms of the loan was not described by any one to my soon the be wife. I am a co-signer. The loan was for around three thousand dollors and we have been paying on time for two years. the payment is 80 a month ant the loan has only been reduced by about two hundred dollors.we figured that only about 10 dollors per month is going towards the actual payoff and the rest is interest. Is this legal? and the was late last week the next day the paYMENT WAS 157 DOLLORS INSTEAD OF 80. It is pretty bad you pay all of your payments on time and some one cant even work with you.


Asked on 10/18/10, 12:51 pm

1 Answer from Attorneys
Rachel Hunter

You need an Indiana attorney (possibly) to review the documents that you signed. Did you take out the loan in NC or IN? Read the documents to see if it contains a provision stating something like "this agreement is governed by the laws of X." Whatever state it says is where you need a lawyer.

NEVER EVER CO-SIGN. The fact that your soon to be wife needed a co-signer tells me that she had bad credit as she had to go to this outfit to get it. If so, that in itself was a red flag.

You would be better off getting a loan from someone in NC and paying this scam loan off, but I would need to see the documents to determine if there is any kind of pre-payment penalty. This sounds like a high rate of interest, but as I have not seen the documents, I do not know if it complies with the laws of whatever state the instrument is governed by.

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Answered on 1/14/11, 8:07 pm


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