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Do I have to pay for Documentary Stamp Tax, Prepaid Finance Charge and 10 days of interest on an Bank Auto Loan I cancelled?

West Palm Beach, FL |

I was approved for a loan through a bank I have a checking/savings account with. picked a car and sent a buyer order to the bank. I signed e-documents for Disclosure and Security and Title. They sent the check to the dealer after explaining to me that I couldn't get the payment the same day as I e-signed the documents. Without that check I couldn't get the vehicle that day since the dealer had no relationship with my bank. I went to the dealer that night to pre-sign paperwork in anticipation of the check the next day and they offered to see if they could match my banks apr. They did and I chose to do the loan with them instead of waiting on the check. I got my banks check from the dealer the next day and called them to send it back. They want me to pay above stated charges.

Attorney Answers 2

Posted

You need to read all the paperwork you signed. So you could not wait a single day for the check to arrive?
Obviously you were qualified for the loan but you chose at the last minute to cancel the loan with that bank and I would not be surprised that some language in there requires you to pay for costs as a transaction fee/cost/administrative etc...

I would suspect the 10 day interest comes from the fact the money was released before the check was sent. The story is not very clear.

Documentation fee ok. Documentary stamp on the car title? I do not see why since the car was not purchased with this loan. Something is not clear, but read the contract at first.

This does not constitute legal advice and is purely informational and we do not have an attorney-client relationship until a fee agreement is signed. The details of your case can vary slightly and the legal analysis can be then totally different. Do not rely on legal aswers to address your particular situation but seek a direct contact wih an attorney.

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Asker

Posted

I could have waited the single day. There were some words crossed with myself and the loan officer I was working with. I was told I could only receive by check and I assumed and asked if they could simply deposit in my account with them so I could do a Cashier's Check. When the option was there to just settle that night instead of going back and forth I decided to do that. The next day when I called I found out they could have actually deposited it straight in my account. The contract has "Ownership and Risk of Loss. You agree to pay us all that you owe under this Agreement even if the Collateral is damaged." I guess the real question is would these Terms go into effect once I have used the check to buy the car or once I have signed the agreement? It does not explicitly state it anywhere on the contract when it does. Other contract part I think may apply "Integration and Severability. This agreement contains the entire agreement between you and us. If any part of this agreement is invalid, all other parts of the agreement will remain valid" The Documentary State Tax was listed on the contract as going to the state. There is no reference in the contract to 10 days interest, or any other interest aside from the accrual of Contract Rate starting once "all title requirements have been met and funding occurs for the purchase"

Asker

Posted

EDIT: I see what you meant about the last part Documentation Stamp on Title. The contract was signed with the charges already there in anticipation of me using their check.

Posted

Re-read whatever you signed.

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