[Debtnightmare]

Took out a $2,500 loan with Beneficial of Florida in 2002. I know I have paid the principal of this loan three times but the 26 percent interest, occasional late fees and insurance I cancelled but they sent a check instead (of course I used it) has made this debt a monster. They got a summary judgment against me last month. I realized it was in court records and that I hadn't showed up for a court date.

But--last week I petitioned the court to have the judgment set aside. I got a rehearing so don't know if it was actually set aside or not. I told the judge as soon as I was informed and process served with the paper lawsuit, I had contacted Beneficial requesting a complete accounting for this case--payments, late fees, interest, and details about insurance I elected and then later cancelled. Instead of cancelling the insurance, Ben. Sent me a check for what the insurance would have cost and added it to the loan balance. I understand if they did indeed add interest to the insurance amount--it was illegal.

Still too soon to see if they follow the judge's orders to send me the full accounting. But, I think if they fail to do so then the case will be dismissed??

Does anyone know about the interest/insurance issue?

I told the judge the 26 percent interest was usurious and he said well--you signed it. It's financial slavery. I stopped making payments in April 2007 because of my husband's terminal illness and subsequent death. Now I'm a single mother. I know the Statute of Limitations in Florida is for five years from the last date of payment so I can't use that defense. I know they can't garnish my wages and my daughter's social security because my wages are too low and SS is exempt. But, I own a time share which is actually leined to another debt collector when they are ready to take it. The only other property that may be in jeopardy is a car someone gave us as a gift when my husband died. The car is worth about $9,000. I live in Florida and they can force the sale of any vehicle worth more than $1,000.

Please help.

[JudyKayTee]

I do know if it's a car note and insurance is required, you do not make arrangements, the holder of the note arranges for the insurance you have to pay interest on their out-of-pocket monies. The theory is that the cost of the insurance is basically a loan to you.

As far as the amount of the interest - unfortunately the Judge is right. You signed it.

I do not see your defense, even after you get documentation. I see another Judgment.

Can you make arrangements to make payments in an amount they will accept? They may still get the Judgment in order to guarantee that they will be paid but hopefully this will keep them from attempting to enforce it.

On a personal note - my sympathy on the loss of your husband. I am also a widow and I find I miss him so much when problems arise and there is no one to talk to, no one I trust. Again, I'm sorry for your loss and the financial tailspin it's put you into.

[Debtnightmare]

Thanks for your sympathy. I'm not sure what you mean by you don't see my defense. A pro bono lawyer who I can't seem to find at this time told me if they charged interest on the disability and other loan insurance I signed for when the loan was new, and then cancelled and they sent me a check for, but added the amount of the check to the loan--was illegal if they charged interest on this amount.

Someone told me if they fail to send me a full accounting the case will be dismissed.

Does anyone have experience with Beneficial?

[JudyKayTee]

Thanks for your sympathy. I'm not sure what you mean by you don't see my defense. A pro bono lawyer who I can't seem to find at this time told me if they charged interest on the disability and other loan insurance I signed for when the loan was new, and then cancelled and they sent me a check for, but added the amount of the check to the loan--was illegal if they charged interest on this amount.

Someone told me if they fail to send me a full accounting the case will be dismissed.

Does anyone have experience with Beneficial?

If they made an error by returning the funds to you because the loan required this insurance, you owe them - as I believe I explained.

Whether anyone has experience with Beneficial does not matter - what DOES matter is what the law says.

Yes, in theory you should receive a full accounting and it will be provided to you.

[ScottGem]

Whether any charges are legal or not goes to determining the amount of the judgment, NOT whether a judgment is issued.

To obtain a judgment they have to prove to a court that you agreed to take this loan and did not pay it in full. If they can do that they will get a judgment.

If they can't prove the true balance of the loan, the amount of the judgment may be adjusted. But the case will not be dismissed.

However, you appear to be pretty judgment proof. They may take the car, especially if its enough to cover the balance of the debt.

[Debtnightmare]

Is there anyway I can protect the car? It was a gift for myself and my teenage daughter. But only my name appears on the title. So it seems I can get the judgment amount reduced so that whatever interest they charged for the insurance will have to be deducted, right? I have a small amount in a college savings plan for my child which I can liquidate. They're saying I owe a little more than $6,000. The loan was taken in 2002 and I paid pretty much on time for 5 years. For how much do you think they will settle?

[Debtnightmare]

Wondering if I should go bankrupt. Beneficial Florida is seeking more than $6,000 on a personal loan I took out in 2002. I owe a lot more on debts that are likely past the statute of limitations. Are cars and a time share exempt in Florida? I signed papers with someone my now deceased husband owed money but there is no official lien against the timeshare recorded at the courthouse. The man who I signed the contract with isn't moving on collecting the property.

Please help.

[Fr_Chuck]

The issue here is they sent you a check, you could have very easy, merely took that check and paid off that amount on the loan. But by keeping the check, you merely increased the loan amount by the insurance value.

If they have a judgement, they won't settle most likely esp if you live in a place where they can garnish your pay or bank accounts

But if you had late pays, then you could easily owe 10 or 12 times the original amount

[Debtnightmare]

So do I have any options? The judge told them to send me papers to validate the debt. I should get them soon.