questions & answers

Question: I was influenced to redo a Secondary motor vehicle finance transaction. A rep from the office called and urged me to go in, cash out on my loan, and do another one. I told them I no longer own the vehicle and they said it's okay and come in anyways. I am now being sued for defaulting on the loan but I was wondering if I could fight it? The contract was signed under false pretenses.

Answer: When a person takes out a loan against a vehicle, the vehicle just serves as collateral to aid the person seeking the loan. Regardless of what happens to the vehicle, the person is still liable to repay the loan. If it is proven that a party issuing a loan uses fraud or duress to coerce a customer into taking a loan, the customer does have some recourse. The customer would have to give back the original amount borrowed, but could avoid some or all of the fees and interest related to taking the loan.