• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Auto Financing in TN

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

4

4mychild

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

I am not sure how my previous thread was closed, I am not that familiar with the site. Below is one of the answers I received:

It's Section 45-15-111(a) of the Tennessee Title Pledge Act which sets forth the interest and fees that may be charged. It specifies that the title pledge lender may contract for and receive an effective rate of interest not to exceed 2% per month; additionally, the lender may charge a fee equal to no more than 1/5 of the original principal amount.

OK. So, the contract called for 42 total payments, which, according to the above, would allow for a maximum of 21% if I am interpreting that correctly. Is that right?

Also, the sales price was just over $10K. IF I pay the full contract amount for the full term, I would be paying just over $16K for the car. Which, is more than 1/5 of the principal.

So, it seems to me that I may have legal grounds to get out of this contract. Is that correct?

And to the person who said "sue them and find out"...what profound advice! I would never have thought of that one. You get what you pay for, huh?

Thank you for all serious replies. Nasty comments are unnecessary. I am a single mother in a bad situation that is not of my own making, and I need some real legal advice, for which I would be truly grateful.
 


S

seniorjudge

Senior Member
4mychild said:
What is the name of your state (only U.S. law)? TN

I am not sure how my previous thread was closed, I am not that familiar with the site. Below is one of the answers I received:

It's Section 45-15-111(a) of the Tennessee Title Pledge Act which sets forth the interest and fees that may be charged. It specifies that the title pledge lender may contract for and receive an effective rate of interest not to exceed 2% per month; additionally, the lender may charge a fee equal to no more than 1/5 of the original principal amount.

OK. So, the contract called for 42 total payments, which, according to the above, would allow for a maximum of 21% if I am interpreting that correctly. Is that right?

Also, the sales price was just over $10K. IF I pay the full contract amount for the full term, I would be paying just over $16K for the car. Which, is more than 1/5 of the principal.

So, it seems to me that I may have legal grounds to get out of this contract. Is that correct?

And to the person who said "sue them and find out"...what profound advice! I would never have thought of that one. You get what you pay for, huh?

Thank you for all serious replies. Nasty comments are unnecessary. I am a single mother in a bad situation that is not of my own making, and I need some real legal advice, for which I would be truly grateful.
Click to expand...
Usury Law in TN and Auto Financing

Sue and find out is the only thing to tell you to do if you don't want to negotiate.

Read the statute.

In any event, you really need to unlock your thread.

Don't ask if you don't want to hear correct answers.
 
4

4mychild

Junior Member
I felt that "sue them and find out" was somewhat nasty, for a site that is set up to give legal advice.

I did not mean to imply that there were nast comments in your answer. I apologize.
 
M

mlane58

Senior Member
4mychild said:
I felt that "sue them and find out" was somewhat nasty, for a site that is set up to give legal advice.

I did not mean to imply that there were nast comments in your answer. I apologize.
Click to expand...
What other legal advise did you want? Suing them is about the only recourse you have and you were advised correctly.
 
4

4mychild

Junior Member
I guess I was expecting something along the lines of "Yes, it is possible under TN law ..... that you would have legal grounds to dispute this contract, you should contact an attorney in your area" OR "No, under the TN law....you have no legal grounds to dispute this contract"

The wording of "sue them and find out" sounded like a snide comment to me, instead of actual legal advice.

I do thank you for your answer regarding the portion of the law that actually dictates auto financing contracts. That was very helpful, and what I needed.

I appreciate everyone's time and effort in providing answers.
Have a great night!
 
S

seniorjudge

Senior Member
4mychild said:
I guess I was expecting something along the lines of "Yes, it is possible under TN law ..... that you would have legal grounds to dispute this contract, you should contact an attorney in your area" OR "No, under the TN law....you have no legal grounds to dispute this contract"

The wording of "sue them and find out" sounded like a snide comment to me, instead of actual legal advice.

I do thank you for your answer regarding the portion of the law that actually dictates auto financing contracts. That was very helpful, and what I needed.

I appreciate everyone's time and effort in providing answers.
Have a great night!
Click to expand...
Snidely Whiplash it is not!
 
You must log in or register to reply here.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top