Q: Can I sue a finance company for charging double the amount for a vehicle. I can explain better with a phone call.
I co-signed for my son a car at the price of $12,400. The car was purchased January 2020 with $1000 down toward it, notes are $410.64 but he still has four more years of payments. This is truly unjustified, unfair and ridiculous. I need guidance on what to do and who to contact to help.
A: Yes, it is most likely unfair and ridiculous however you and your son sign the agreement-----and you are going to have to explain why it was not voluntary. Try the Consumer Protection Division of the LA Attorney General's office and see if it can provide you some assistance. At this point in time, if able, your best options may to to sell the car and pay off the note early, or payoff the note early and refinance with better terms.
A:
Not likely. There are usury rate laws lenders need to follow, but there are so many loopholes for them that I find it common for my clients to have 20+% interest on car loans. There could also be hidden fees and upcharges that upped your principal balance.
You should speak with a bankruptcy attorney regarding your options. With such a high interest rate, which you likely have based on the monthly payment, balance, and duration, you are likely significantly underwater on the vehicle.
A bankruptcy could help, but more information is needed to determine this, and would also involve the co-signer. Selling the car could be a way to mitigate the loss, but would still likely put you at a loss unless there is equity in your vehicle.
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