Legal Question in Consumer Law in Oregon

Interest on purchase,but not legally stated in document

Purchased a used truck,deal did not go thru as fast as either expected, we put $5000 down but after a couple of months we were called and told they would start charging $7.00 a day interest. No where in our paper work did it say interest would be charged or after how many days. Just warranty notice. I have gone to small claims court to get back $578 they charged when we did pay it off. I say it is not legal they are disputing claim. What are my chances of winning? What is a Mechanics Lean? Can this be used in this case?


Asked on 9/05/05, 12:44 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: Interest on purchase,but not legally stated in document

Sounds like there is simply more to this matter than is apparent from first reading. You bought a truck, but you don't say what the purchase price or the terms were.

Likely somewhere you did agree to pay interest if it was not a cash sale, although $7.00 per day sounds odd.

You have filed a small claim regarding the interest charges?

Your chances of winning depend on your ability to cite to applicable laws and cases where others in your situation have prevailed, and to convince the judge that the agreement was unfair or a deceptive practice. See RCW 19.86, the Consumer Protection Act (only applicable if you purchased the truck from a merchant). I can't tell from what information you provided whether that's true - or not.

A mechanic's Lien is a mechanism to ensure that a person who provides services gets paid for those services. If properly raised, it could be an effective tactic - but I can't tell that the seller ever worked on your truck.

Good luck with this. Powell

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Answered on 9/05/05, 1:19 pm


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