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Is This A Breach of Contract??

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cmbw1124

Junior Member
What is the name of your state (only U.S. law)?
Louisiana

In March we bought a vacuum in which we had a 90 day same as cash agreement. We were to pay 2100 before the 90 days and would be free of paying interest. Which we fulfilled our obligation in time allotted and have the proof of doing so. I received a later stating we owed 860 dollars in interest, so the dealership we made the purchase from contacted the finance company, to which the finance company told them if we just sent $150 to them they'd close the account. They are telling us this problem is because we started with a different finance company who sold our account to them. We weren't aware our agreement or contract would change? This seems like a really big trap or scam? I reported the company to the better business bureau. What else do I do? Isn't this a breach of contract? Should I contact my attorney? I feel I shouldn't have to pay anything else if we met our obligation to the contract? Why are they trying to get us to pay what we were told we wouldn't have to?
 


itdepends

Member
There are a couple of problems with what happened. First, the contract cannot be changed just because it was sold. The assignee cannot enforce anything that the assignor could not enforce. Second, even if you did owe interest, the interest rate you were charged would not be legal. $860 dollars interest on $2100 principal in roughly 5 months is at or near 100% APR, and that would be usury.
 

BL

Senior Member
You fulfilled your obligation .

Send proof ( copies ) of your payments before the 90 days were up per contract , to both the dealer and the finance companies ( both of them ) .
 

cmbw1124

Junior Member
We already did send it to the company with whom we bought our stuff...
They in turn faxed everything to the finance company, and only after did they say okay well then just send 150 dollars...
 

BL

Senior Member
We already did send it to the company with whom we bought our stuff...
They in turn faxed everything to the finance company, and only after did they say okay well then just send 150 dollars...

You owe nothing .

If the call or send any other correspondence , tell and/or write them to cease and desist contact .
 

cmbw1124

Junior Member
I keep getting the run around and they wont let me talk to who I need to talk to?
If they don't work with me to fix this what are my options?
I mean in the big picture paying what we say we owe would be much cheaper than getting a lawyer involved and taking it to court...
I would be willing to sue for defamation if this effects my credit...
 

itdepends

Member
I keep getting the run around and they wont let me talk to who I need to talk to?
If they don't work with me to fix this what are my options?
I mean in the big picture paying what we say we owe would be much cheaper than getting a lawyer involved and taking it to court...
I would be willing to sue for defamation if this effects my credit...
You're the one with the money, so although it may not seem like it, you're in control of the situation. If you refuse to voluntarily pay the $860, then the only way to force you to pay will be to sue, and it's kind of hard to win a lawsuit for breach of contract when the defendant never breached the contract.

If the finance company does something to negatively affect your credit score, then you should dispute it with the 3 major credit bureaus. The bureaus are required to investigate disputes. If your credit report is not cleaned up after a dispute, then you should talk to an attorney about your chances of winning a lawsuit against the finance company (the defendant must pay the attorney fees for a prevailing plaintiff in such cases).

Why fold? It sounds like you're getting scammed.
 

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