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About Mike Weikle
Expertise
Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability

Experience
Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.

Education/Credentials
Certified Public Accountant; JD -- West Virginia College of Law - Order of the Coif Data Processing Training Old Dominion Bank and IBM

You are here: Experts > Business > Small Business: Canada > Financing -- Loans > car loan

Financing -- Loans - car loan

Expert: Mike Weikle - 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
Even if the loan agreement allows such a charge, I doubt you had any idea they would ever charge such an outrageous amount. I would tell them you refuse to pay the $5,000 fee and you will continue to pay in Georgia. I would also call the state attorney general's office of consumer protection and make a claim to them if they refuse to take back the charge. This is the ultimate in bad faith by a lender. I doubt any court would enforce such a contract or a charge so outrageous. I cannot think of any instance any charge other than a nominal charge of at most a couple hundred bucks to handle the paperwork,and even that amount would seem to be much more than the actual cost of making the change in the finance company's records.

Continue making the payments (regular payments)but do not pay the $5000. If they attempt to repossess the car let them, and get a lawyer to take your case on a contingency fee basis.

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