I financed a car at almost 26 percent in 2017 with $400/mo payments. I paid the car down and planned on paying it off this October, a year early. Due to an insurance claim, my insurance went up to $275/month. The two payments exceed my rent so I purchased liability instead. The lien holder added $1900 for 'CFI insurance' to my balance and increased my payments by $100/per month. Is this legal and how can I fight back?
At the time I had horrible credit but needed a reliable car due to my travel job. The lien holder, Nicholas Financial, won't refinance, and I'm having a hard time negotiating with them. I almost want to give the car back, I was just a couple thousand away, now have to pay$1000/ extra for every 12 months of no full coverage plus interest or $3000/yr for progressive? This is frustrating.
This is not a divorce question. It is an insurance and contract question.
Read your contract. That contract (in all likelihood) provides that your insurance company has the right to add on to your policy the cost of insurance and other items at its choice if you do or do not do various actions listed specifically or generally in the policy. Always read your policy. It is a legally binding contract.
This response does not constitute legal advice and does not create an attorney-client relationship. I am licensed to practice only in Kansas. Seek legal advice from an attorney in your state or the state in which your legal claim exists.
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