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C

catb

Guest
In November,97, My 18 year old son took out a loan for a car. My husband cosigned. In 12/97, he totaled the car. In 1/98, Insurance company paid bank and got the car title. We talked to the bank and agreed that after settlement if any monies were owed they were to notify us. We heard nothing until 1/2000, when we recieved a late notice for a 12/99 payment! Now they want us to pay over $1800 within 30 days or be charged over $2000 interest. They have yet to explain to us how this could happen, not a word for 2 years!? All they are concerned about is when we will pay them! My son is 20 now and on his own. Neither he or us can afford $1800 in one lump sum! I still have a checking account at this bank and am in there every other week. They know me! Never a word about this until now. Is this legal? Can they demand payment in full after all this time? Thanks for anything you can tell me. We thought since we hadn't heard from them, the insurance had taken care of it.
 


I AM ALWAYS LIABLE

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by catb:
In November,97, My 18 year old son took out a loan for a car. My husband cosigned. In 12/97, he totaled the car. In 1/98, Insurance company paid bank and got the car title. We talked to the bank and agreed that after settlement if any monies were owed they were to notify us. We heard nothing until 1/2000, when we recieved a late notice for a 12/99 payment! Now they want us to pay over $1800 within 30 days or be charged over $2000 interest. They have yet to explain to us how this could happen, not a word for 2 years!? All they are concerned about is when we will pay them! My son is 20 now and on his own. Neither he or us can afford $1800 in one lump sum! I still have a checking account at this bank and am in there every other week. They know me! Never a word about this until now. Is this legal? Can they demand payment in full after all this time? Thanks for anything you can tell me. We thought since we hadn't heard from them, the insurance had taken care of it. <HR></BLOCKQUOTE>


My response:

Even though it says at the top of this page that "State Laws vary greatly. Include your state in all postings" you failed to do so. Therefore, all I can do for you is give you generalized information, despite the fact that you need specific information.

Generally, a written vehicle contract can be enforced at any time, without waiving any rights, for up to four years from the date of signing, or up to four years from the date of the last payment. The tellers, or managers, or the security guards, might know you, but they don't have yours (or albeit anyone's) contract situation memorized.

Check with your attorney for specifics in your State.

However, banks are in the business of making money and, to do that, they love to make loans. Ask them to convert the old loan into a new loan, and make the monthly payments. Then, look to your "adult" son to repay you, each and every month, until paid in full. This would be a good life-lesson for him, that he can't just sign a contract, and then "walk away from it" because mommy and daddy co-signed the loan. If he tell you he can't pay, you can even sue your own son. You can't pay his way throughout his life, and this would be "tough love."

IAAL



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[This message has been edited by I AM ALWAYS LIABLE (edited March 14, 2000).]
 

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