Legal Question in Credit and Debt Law in North Carolina

First, it does not necessarily matter how much you have paid to date. That information is meaningless without knowing the total purchase price of the vehicle, how much of the car loan was financed and what the interest rate was An attorney would need to see your loan documents too.

The more important question is why has the lender failed to apply any of your payments to the car loan? How long has this been going on? What, have you done about it? Why is the loan in debt collection? Most lenders will repo the car. Do you still have the car?

I don't quite understand the balance of your post. Who has "verified" the payments? If you are talking about doing a debt dispute letter to the debt collector, then the debt collector is required to verify that. it would appear they have done so showing that you owed x amount. This sum includes interest and principal unles you had a zero percent (0%) car loan. So why would you think you only owe principal? What federal law provides that? I am not aware of any such law.

I would suggest that you have your car loan documents and any "verification" reviewed by an attorney, whether its me or someone else. I will give free email consults, but there will be a charge for review of documents which will be $50 - $100 depending on how much you have. Please contact me at [email protected] if interested.