Legal Question in Credit and Debt Law in Pennsylvania

Car Loan - Totaled Vehicle
I wanted to co-sign a loan for my stepson for a vehicle. The car dealers put my name as the buyer because I had better credit and he got a lower interest rate. 3 months later he totaled the vehicle. The insurance company took 5 months to finally settle with the loan company. I received a letter from the loan company saying that we should have continued paying the loan even after the crash and therefore they had been accruing finance charges on the unpaid payments and have added over $1000 to the amount owed after the insurance deduction. My problem is that I nor my stepson were ever told to continue paying the loan, we never received late notices (as I did for the first 2 months because he was late) or phone calls (as I also did) we never even received a payment book, my account was frozen on the internet so I couldn't have paid even if I wanted to, and the contract states ''to pay what is owed if the vehicle is destroyed''. Do I legally have to pay these finance charges?

Asked on 6/07/08, 4:58 pm

Roger Traversa Arjont Group (Law Office of Roger Traversa)

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Re: Car Loan - Totaled Vehicle

You asked about finance payments on a totaled vehicle.

You need to look at both the loan documentation and the insurance documentation and then at the law as applied to the documents as written.

No one can tell you who owes what to whom without looking at the specific documents.

Regards,

Roger

Answered on 6/08/08, 12:12 am

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