Legal Question in Credit and Debt Law in Texas

Bank Error - possible judgement

Some months ago I took out a secured loan at moms crdt union. She secured the loan with her CD. I was in car accident requiring back surgery and was unemployed for some months. My mom (in debt herself) agreed to break CD and pay off my loan as well as some of hers. She was assured not once but twice that all accounts were cleared and given check for remainder of CD balance. She was called a couple of weeks later and notified my loan had not been paid because it had been written incorrectly by bank employee and had not been attached to moms CD. I made arrangements to start paying on loan after 3 months. (they gave me time to find a job) However, when I recieved the paperwork on the loan they had doubled the interest rate. I did not agree to this and will not pay at the increased rate. They are now seeking judgement. I will pay but not at increased rate, how do I avoid a judgment and delinquent status on credit rating.


Asked on 1/24/02, 10:33 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Bank Error - possible judgement

It's unfortunate, but legally you are in a box. You defaulted on the first loan. They are under no obligation to extend that loan. You are liable for the money owed on the first loan, and they can sue you for it. The only way you could avoid that would be to renegotiate a new loan, but you are in the weak bargaining position.

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Answered on 1/25/02, 10:00 am


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