Under Illinois law, does a new verbal agreement annul a previously signed loan agreement?

Asked almost 4 years ago - Chicago, IL

in December of 2002, I have signed a 5 year (60 month) auto loan agreement. The payment book received was for 60 payments over 10 years (every other month instead of every month) under the same interest rate and payment amount. I made payments every other month according to the book. Five years later (after 30 payments), a V.P. called me from the bank to tell me that the book was printed in error. He apologized and kindly requested that we make a new payment arrangement. We agreed on the phone to pay the remaining 30 payments on a monthly bases. Now that I am done w/ the remaining 30 payments, a new VP calls me to tell me that I still owe them interest of over $2,500. He tells me that the other VP is no longer there, and that the verbal agreement made means nothing! What are my rights?

Additional information

I am done with all 60 payments now, but collections keep harassing me to pay the $2,500 in additional interest that they say I accumulated due to the fact that I didn't pay in 5 years. They refuse to send me the title, and threaten to repossess the car! Can I sue? Where & how? Is it worth putting a lawyer, or can I do it? If I put a lawyer, can I reclaim those losses as well?

Attorney answers (2)

  1. Tara Leigh Goodwin

    Contributor Level 16

    Answered . Contact a consumer protection attorney and have them review your documents. Most will provide a free consultation, and many will take good cases on a contingency basis. A good place to find one if the Chicago Bar Association's attorney referral service or the National Association of Consumer Attorney's web site: naca.net. There are some legal arguments based on estoppel that might work in your situation. Also, the Fair Debt Collection Practices Act will apply to the collection agency, and if they have reported anything derogatory on your credit, you may be able to set up a Fair Debt Collection Practices Act case by disputing the items with the credit bureaus. A consumer protection attorney can advise you on the best way to proceed using various consumer protection statutes.

  2. Alan James Brinkmeier

    Contributor Level 20

    Answered . You paid by the payment books so go by that. Forget what the new VP says, You followed the written book payment plan and you do not have to go with another oral agreement this new VP wants to foist on you for an added $2500

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