Used Car Laws? Irritating Dealer!

[bloom5973]

What is the name of your state? TEXAS

I have heard that the state of TX has maximum interest rate laws that a dealer can put in a used car, what is it? I bought a used 1995 Toyota Camry, I put 3k down and I am financing $2995 at 22.9%, I know it's a lot of money for a used car, I am upset that I didn't walk away, the only good thing I can say is the car is in very good condition and has had just 2 owners and drives great (so far). This guy I bought the car from is bugging me, he kept pestering about buying it saying "I'LL WORK WITH YOU ON THE PRICE ETC" Believe me I tried bargaing as much as I could because I really liked the car. I called some insurance co's from his office since he said I needed insurance before I drove off the lot, I just wanted to get away from him so I went with the first one I called, and signed up, The car guy then asked if I told them I needed full coverage, I said No, he said I need full coverage because there's a lien, so I called back asked for full, the price was double and the car guy saw I was about to change my mind about the whole deal because this car was becoming too expensive, I'm a single mom not working looking for a job, I don't need all these extra costs. So he said Ok, Ok, I will let you go but you have to get full co erage, I said ok, he said show him proof of this when I come to make my next payment in 2 weeks, well I got full coverage insurance 3 days after and the lady said she would fax him a copy, the car guy has been calling my house even late as 9:15 at NIGHT bothering me about full coverage insurance, I left him a message stating I already bought it and his fax is NOT working because I tried faxing it too.
This guy is driving me crazy, I haven't even had this car a week, I wish I would've never dealt with him!

 

[seniorjudge]

What is the name of your state? TEXAS

I have heard that the state of TX has maximum interest rate laws that a dealer can put in a used car, what is it? I bought a used 1995 Toyota Camry, I put 3k down and I am financing $2995 at 22.9%, I know it's a lot of money for a used car, I am upset that I didn't walk away, the only good thing I can say is the car is in very good condition and has had just 2 owners and drives great (so far). This guy I bought the car from is bugging me, he kept pestering about buying it saying "I'LL WORK WITH YOU ON THE PRICE ETC" Believe me I tried bargaing as much as I could because I really liked the car. I called some insurance co's from his office since he said I needed insurance before I drove off the lot, I just wanted to get away from him so I went with the first one I called, and signed up, The car guy then asked if I told them I needed full coverage, I said No, he said I need full coverage because there's a lien, so I called back asked for full, the price was double and the car guy saw I was about to change my mind about the whole deal because this car was becoming too expensive, I'm a single mom not working looking for a job, I don't need all these extra costs. So he said Ok, Ok, I will let you go but you have to get full co erage, I said ok, he said show him proof of this when I come to make my next payment in 2 weeks, well I got full coverage insurance 3 days after and the lady said she would fax him a copy, the car guy has been calling my house even late as 9:15 at NIGHT bothering me about full coverage insurance, I left him a message stating I already bought it and his fax is NOT working because I tried faxing it too.
This guy is driving me crazy, I haven't even had this car a week, I wish I would've never dealt with him!

Q: I have heard that the state of TX has maximum interest rate laws that a dealer can put in a used car, what is it?

A: I've never heard of such a thing.

 

[aquaticmami]

Usuary

Yes, it's a common legal practice. Many states have those limits and they are called Statuatory Maximums. The term for anything above the limits is called Usury Limits and if "usury" is determined it falls under the laws of loan sharking.

Bank loans however, fall under federal guidelines if they are federally chartered or have the word, "national" in their name. Those rates are a certain number of points above the federal reserve discount rate. Small loan companies fall under another set of rules. Your interest rate sounds like that of a small loan company and probably is within legal limits, but you can check out the rates for chartered organizations and see if it meets the criteria.

Usury usually applies to individual loans...as in you loan your family member money and ask for interest back. When I looked up Texas, I found the Statuatory Maximums as 6%, except when a judgement is awarded. Then it can go as high as 18% or contract limits, whichever is lower.

 

[aquaticmami]

Yes, it's a common legal practice. Many states have those limits and they are called Statuatory Maximums. The term for anything above the limits is called Usury Limits and if "usury" is determined it falls under the laws of loan sharking.

Bank loans however, fall under federal guidelines if they are federally chartered or have the word, "national" in their name. Those rates are a certain number of points above the federal reserve discount rate. Small loan companies fall under another set of rules. Your interest rate sounds like that of a small loan company and probably is within legal limits, but you can check out the rates for chartered organizations and see if it meets the criteria.

Usury usually applies to individual loans...as in you loan your family member money and ask for interest back. When I looked up Texas, I found the Statuatory Maximums as 6%, except when a judgement is awarded. Then it can go as high as 18% or contract limits, whichever is lower.

Check out: http://www.caine-weiner.com/resource/pdf/7_01.collage.pdf

Here's the state limits.

 

[seniorjudge]

Yes, it's a common legal practice. Many states have those limits and they are called Statuatory Maximums. The term for anything above the limits is called Usury Limits and if "usury" is determined it falls under the laws of loan sharking.

Bank loans however, fall under federal guidelines if they are federally chartered or have the word, "national" in their name. Those rates are a certain number of points above the federal reserve discount rate. Small loan companies fall under another set of rules. Your interest rate sounds like that of a small loan company and probably is within legal limits, but you can check out the rates for chartered organizations and see if it meets the criteria.

Usury usually applies to individual loans...as in you loan your family member money and ask for interest back. When I looked up Texas, I found the Statuatory Maximums as 6%, except when a judgement is awarded. Then it can go as high as 18% or contract limits, whichever is lower.

For the sake of the readers of this forum, your signature should state that you are not a lawyer and that you are making uneducated guesses.

The maximum rate allowed on these kinds of loans in Texas is 24%:

http://www.capitol.state.tx.us/statutes/fi.toc.htm

(Chapter 303)

http://www.occc.state.tx.us/pages/Legal/Laws/motor_veh/mvAll.html#n2

 

[aquaticmami]

Post on what you know...otherwise you mislead a person

For the sake of the readers of this forum, your signature should state that you are not a lawyer and that you are making uneducated guesses.

The maximum rate allowed on these kinds of loans in Texas is 24%:

http://www.capitol.state.tx.us/statutes/fi.toc.htm

(Chapter 303)

http://www.occc.state.tx.us/pages/Legal/Laws/motor_veh/mvAll.html#n2

FOLLOW YOUR OWN ADVICE.

EVEN THE OP KNEW THAT THERE WAS SUCH A THING AS STATUATORY MAXIMUMS AND USURY RATES.

I BELIEVE YOU RESPONDED, "I'VE NEVER HEARD OF SUCH A THING." ISN'T IT GREAT THAT I TOLD YOU WHAT THE TERMS WERE SO THAT YOU COULD LOOK UP THE WEBSITES YOU REFERENCED FOR CHARTERED ORGANIZATIONS, EVEN IF YOU STILL DON'T KNOW WHY THEY ARE 24% AND THE REGULAR LOAN RATES ARE 6%?

YOU ARE BECOMING MY FAVORITE PERSON HERE!

 

[BlondiePB]

Oh, brother....

 

[Obnoxious1]

FOLLOW YOUR OWN ADVICE.
YOU ARE BECOMING MY FAVORITE PERSON HERE!

And you are showing yourself to be a moronic freak of nature

 

[rmet4nzkx]

FOLLOW YOUR OWN ADVICE.

EVEN THE OP KNEW THAT THERE WAS SUCH A THING AS STATUATORY MAXIMUMS AND USURY RATES.

I BELIEVE YOU RESPONDED, "I'VE NEVER HEARD OF SUCH A THING." ISN'T IT GREAT THAT I TOLD YOU WHAT THE TERMS WERE SO THAT YOU COULD LOOK UP THE WEBSITES YOU REFERENCED FOR CHARTERED ORGANIZATIONS, EVEN IF YOU STILL DON'T KNOW WHY THEY ARE 24% AND THE REGULAR LOAN RATES ARE 6%?

YOU ARE BECOMING MY FAVORITE PERSON HERE!

JUDGY'S RESPONSE WAS CORRECT!
The dealership, which is what the question was about, doesn't set the interest rate or make the loans, a separate financial institution makes the loan and sets the interest rate. Thus it was news to Judgy, that their interest rates were regulated. The rate is going to be high for an unemployed single mom, without proof of insurance or a person with bad credit.

Now go Troll somewhere else, be sure to wear a drysuit so you don't pollute the water! Don't you have some big dogs to take care of?

 

[Obnoxious1]

Now go Troll somewhere else, be sure to wear a drysuit so you don't pollute the water! Don't you have some big dogs to take care of?

LMAO

Woof woof Jennifer.

 

[rmet4nzkx]

Here is your other thread which offers some background as to how you got in this situation.
https://forum.freeadvice.com/showthread.php?t=245317
You are not a single parent, you are a married woman, married to a Swiss national who lives in UK, where you also lived until recently.
Have you established paternity? Have you applied for child support, you can do this even if you haven't established residency in TX, long enough to get a divorce. Are you getting any support? Apparently he has money if he is making investments and free to travel the world.

 

[aquaticmami]

You are a bitter little banana, aren't you seniorjudge. Don't let your eyes roll out of your head when you sign on as blondie. I'm not sure you can afford to lose them along with the other obvious deficiencies.

THE QUESTION WAS: "I have heard that the state of TX has maximum interest rate laws that a dealer can put in a used car, what is it?"

Seniorjudge, and his five other names found that confusing and "never heard of this." Now he's saying that being a single mother and having a lack of insurance affects interest rates. Where do you come up with this stuff, seniorjudge. That's hysterical!

That has nothing to do with interest rates. They are determined by job stability and credit history. As a matter of fact, a person who is a legal resident with a stable work history and a strong credit history from another country can easily qualify for low interest rates. The idea that credit is a nationalist concept instead of easily traced internationally is even more amusing than the fact seniorjudge hates being proven as a know nothing.

Always a joy, seniorjudge. You are my favorite toy here.

 

[anothercretin]

The dealership, which is what the question was about, doesn't set the interest rate or make the loans, a separate financial institution makes the loan and sets the interest rate. Thus it was news to Judgy, that their interest rates were regulated.

I love coherent sentences and thought, don't you? Read the original post again and see if you can follow along with everyone else here.

 

[bloom5973]

rmet4nzkx- i AM a single mom, yes I am married but I am going through a divorce and living by myself and raising my daughter by MYSELF,I believe that qualifies me as a single mother. don't ASSume everything just because I had a previous question about my spouse. Just because he is a Swiss national doesn't mean he is throwing money at me because if he was I wouldn't be on this damn board wasting my time spelling myself out to you. His money is tied up and is not free to me at this time, IS THAT GOOD ENOUGH FOR YOU???? So try sticking to the subject at hand instead of debating me about something you shouldn't be.


Here is your other thread which offers some background as to how you got in this situation.
https://forum.freeadvice.com/showthread.php?t=245317
You are not a single parent, you are a married woman, married to a Swiss national who lives in UK, where you also lived until recently.
Have you established paternity? Have you applied for child support, you can do this even if you haven't established residency in TX, long enough to get a divorce. Are you getting any support? Apparently he has money if he is making investments and free to travel the world.
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