Legal Question in Credit and Debt Law in Virginia

Re: Finance co payment

Well, we really need to know more about this to

give a meaningful answer. What kind of finance

company? A mortgage? A car? Or something else?

The answer will mainly depend on what the loan

document actually says.

The finance company does not have a right to

refuse your partial payment, particularly if

the consequences are that interest may accumulate. You should try to document the fact

that you offered them payment. If you don't

have proof or a witness, try again to offer part

payment and go with a witness or get some

documentation. Or try to engage them in WRITTEN

dialogue in which they might admit more of this.

However, other than reducing interest, I don't

know what you WANT to happen here.

If you have not paid the full payment, then

the finance co. MAY have the right -- depending

on what the loan agreement actually says --

to demand immediate payment of the entire loan.

This is called "accelerating" the loan.

IF that is what the loan agreement says, then it

will not make any difference if they take a part

payment or a full payment. If the regularl

monthly payments are not made, they can "call"

the entire loan.

Of course, bear in mind that if they go to court

and win, that DOES NOT mean you pay right away.

All that means is that there is an official

court decision that you owe the money. It looks

bad on your credit. But it does not mean you

pay right away. They have to try to collect the

money from you by garnishing bank accounts or

such.