If I stop paying on a predatory loan, can I be sued?

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If I stop paying on a predatory loan, can I be sued?

I have made 13 payments, totalling more than $3600 but the principal has barely come down due to the 138% interest rate. I’ve read on some forums that this is an illegal loan and I should stop paying. I have contacted both the Attorney General and Dept of Commerce but was told to contact a lawyer. The original lender sold the loan to another company.

Asked on December 14, 2012 under Bankruptcy Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you stop paying on a usurious and illegal loan you can be sold by the holder of the loan. If you are, then you can cross complain for usury and for an unfair loan/business practice. From what you have written, I suggest that you consult with a consumer law attorney for assistance.


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