QUESTION

can a company sue me if I am making some kind of payment.

Asked on Dec 27th, 2012 on Breach of Contract - Oklahoma
More details to this question:
I made a 100.00 payment on november 30th. The company filed with small claims court on December 3rd. It is my understanding that as long as I am making some kind of payment then they cannot sue me for the debt. is this true? Also, I traded in the vehicle and gave the dealership a power of attorney to pay the balance of the title loan.
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2 ANSWERS

Matrimonial and Family Law Attorney serving Erie, PA
2 Awards
Yes, they can.  If the debt is due, then it is due in full, and the creditor does not have to accept payments, unless it has agreed to do so.
Answered on Dec 28th, 2012 at 11:23 AM

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Appellate Practice Attorney serving New York, NY
I am not familiar with Oklahoma law, but I've never heard of any law in any jurisdiction which would prevent a creditor from suing you if you are making any payment on the debt, unless you had an agreement with the creditor to that effect.  As for the second part of your question, as I understand it, you had an agreement with the dealership, a third party, that it would pay the debt.  This agreement may be binding on you and the dealership, but, unless the creditor was a party to the agreement, it doesn't affect your obligation to the creditor.  In other words, you and I can agree that, in exchange for your car, I'll make all further payments on the car loan.  If I don't pay, you can sue me, but you are still obligated to pay the lender.  Your agreement with me doesn't change anything about your agreement with the lender, unless the lender is party to the agreement with me.
Answered on Dec 28th, 2012 at 10:13 AM

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