Expert: Finance Guy - 11/3/2009

Question
Hi,i got a loan on my car when i was in GA state and bought a second car at the same state from the same financial company, then i moved to KY state and contacted a branch of that company to transfer my loan from GA to KY state so i can do the payment follow up localy but here is my problem : the Kentucky branch charge me an additional finance charge of $5000.00 just to switch my account from GA to KY and i have been paying it each month.
1/ is the new finance charge of $ 5000.00 mandatory ?
2/ do i have to pay it all or stop paying it?
3/ if they are not suppose to charge me $5000.00, can i get a full refund ? and how?
4/ what do i need to know and do to ask for a refinancing of my two cars loan ?
Thank you for your help and time.
Scott.


Answer
Wow, who IS this finance company?

First, transferring an account from one state to another should NOT result in a higher finance charge. Is it possible that you borrowed more money or took an advance or something?  

I would call your Georgia office and ask for a payoff amount.  Contact a local bank or credit union and explain the situation and see if you can get a loan to payoff this finance co.

I would not suggest that you simply do not pay.