Legal Question in Credit and Debt Law in Tennessee

Interest on car repossession

I had a car voluntarily repoed after costly repairs that I could no longer afford. I paid 300 a month every month for 3 years prior to giving it back. It has been five years and I have not paid anything on it after it was taken. It is now with a collection company. The last bill they sent me was for 13,000, and increasing at about 200 a month! This is at least 50 percent interest or more. Can they charge this amount of interest? People keep telling me that they cant, but these people are not lawyers.


Asked on 9/21/03, 12:55 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Interest on car repossession

Many states have usury laws which prohibit excessive interest. In many situations, you may also be able to make a claim that this interest is unconscionable or consitutes a deceptive trade practice. In order to prevail upon this, however, you will need to consult with an attorney in regards to this matter.

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Answered on 9/22/03, 10:39 am


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