What is the name of your state? New Brunswick, Canada
Four years ago, my mother was involved in a terrible accident that greatly disabled her and claimed the live of her best friend and her boy friend. Since then she has been waiting for her settlement from the responsible party's insurance company.
About a year ago, I was living with a close family friend. As I was having a hard time financially she took me in and let me live in a room in her house at no charge for 4 months (provided that I helped around the house and pay my own food). During this period, the close family friend (who we will call Martha), let me drive her car to run errands and on occasion, I would take it to work. After about 4 months of living there I was ready to move in on my own as I was now more financially stable. Around the same time she decided that she didn't like her car anymore and wanted to buy a different one. The problem was she was stuck in a lease. As a great personal favor, she offered to loan me the car and pay for the lease payments and insurance until my mother received her insurance settlement. At that point it was agreed that my mother would pay her back for the buy-out value and the cost of payments and insurance during the time I was driving it. Martha offered to keep paying for the lease payments and insurance in her name until my mother would settle. She made it clear that this would not cause her a great financial burden.
When the car needed to be serviced or needed oil change, I would take it in and pay for those things to be done. I also paid my own gas. I drove the car to work and to run errands.
After about 10-11 months, Martha called me and asked me to get an insurance quote so I could pay for my own insurance. I got the quote and told her to let me know when she wanted me to start paying my own insurance on the car. I didn’t from her for about a month. Then one day she called me and told me that she was having a hard time to pay for both cars and she asked me to try to get a small loan for $5,000 to pay for part of the payments. I immediately went to 3 banks and as a 23 year old who has only been accumulating credit for 6 months, naturally I was turned down. I explained this to her and kept trying to get a loan as my mother’s case experiencing delays. She kept pressuring to give her $5,000 or she would loose her house. I offered to give the car back to her but she refused and told me that it was my responsibility now even though the car and insurance is still under her name. Now she is threatening to take legal action against me if I don’t give her $26,000 my next month (the remaining lease payments on the car plus the buy-out value).
Yesterday she came to my house and asked me for the keys and took posesion of the car.
Does she have a leg to stand on given the fact that this is her car and my name has never been listed anywhere? Also, taking into consideration that the verbal agreement was that my mother would pay for the car when she would settle with the insurance company.
Four years ago, my mother was involved in a terrible accident that greatly disabled her and claimed the live of her best friend and her boy friend. Since then she has been waiting for her settlement from the responsible party's insurance company.
About a year ago, I was living with a close family friend. As I was having a hard time financially she took me in and let me live in a room in her house at no charge for 4 months (provided that I helped around the house and pay my own food). During this period, the close family friend (who we will call Martha), let me drive her car to run errands and on occasion, I would take it to work. After about 4 months of living there I was ready to move in on my own as I was now more financially stable. Around the same time she decided that she didn't like her car anymore and wanted to buy a different one. The problem was she was stuck in a lease. As a great personal favor, she offered to loan me the car and pay for the lease payments and insurance until my mother received her insurance settlement. At that point it was agreed that my mother would pay her back for the buy-out value and the cost of payments and insurance during the time I was driving it. Martha offered to keep paying for the lease payments and insurance in her name until my mother would settle. She made it clear that this would not cause her a great financial burden.
When the car needed to be serviced or needed oil change, I would take it in and pay for those things to be done. I also paid my own gas. I drove the car to work and to run errands.
After about 10-11 months, Martha called me and asked me to get an insurance quote so I could pay for my own insurance. I got the quote and told her to let me know when she wanted me to start paying my own insurance on the car. I didn’t from her for about a month. Then one day she called me and told me that she was having a hard time to pay for both cars and she asked me to try to get a small loan for $5,000 to pay for part of the payments. I immediately went to 3 banks and as a 23 year old who has only been accumulating credit for 6 months, naturally I was turned down. I explained this to her and kept trying to get a loan as my mother’s case experiencing delays. She kept pressuring to give her $5,000 or she would loose her house. I offered to give the car back to her but she refused and told me that it was my responsibility now even though the car and insurance is still under her name. Now she is threatening to take legal action against me if I don’t give her $26,000 my next month (the remaining lease payments on the car plus the buy-out value).
Yesterday she came to my house and asked me for the keys and took posesion of the car.
Does she have a leg to stand on given the fact that this is her car and my name has never been listed anywhere? Also, taking into consideration that the verbal agreement was that my mother would pay for the car when she would settle with the insurance company.
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