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  1. #1
    eviltwin is offline Junior Member
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    Angry Error on modification agreement

    What is the name of your state? Texas
    I recently modified my auto loan. My new payments have already taken effect. I received a letter from my lender stating that an error was made on their part. Their error had the maturity date wrong. The new agreement adds a year to my loan. There was no E & O disclamer in the agreement. Do I have to sign the new agreement?
  2. #2
    CraigFL is offline Member
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    I would suspect that there are conflicting figures that will allow them to correct the agreement without your direct approval. The loan amortization, principle and interest rate should show what the correct term should be. If the term is too short, the loan will not be fully amortized and there will be a balloon payment at the end.

    The terms should have been discussed with you and agreed on before the loan( which I assume you agreed to), so you should just sign the modification.
  3. #3
    moburkes is offline Senior Member
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    I'm not sure why you're looking for an errors & omissions disclaimer. Do you want to sue them because they made a mistake?
  4. #4
    CraigFL is offline Member
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    Quote Originally Posted by moburkes View Post
    I'm not sure why you're looking for an errors & omissions disclaimer. Do you want to sue them because they made a mistake?

    I think he said that because most of the time when you sign paperwork like that, especially a mortgage/promissory note, they have you sign a statement that gives them the right to correct any small/clerical errors like that without having to get further approval.
  5. #5
    moburkes is offline Senior Member
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    Quote Originally Posted by CraigFL View Post
    I think he said that because most of the time when you sign paperwork like that, especially a mortgage/promissory note, they have you sign a statement that gives them the right to correct any small/clerical errors like that without having to get further approval.
    Okay. I re-read the original post. When he said that the new agreement extends the loan one year, I thought he meant the refinance. But, apparently, he is talking about the corrected agreement. I do agree with the advice that you gave.

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