[CatalinaB]

Hello
I was sued because I defaulted on my auto loan 5 years ago due to losing my job, I then returned the car to the auto loan company, I received a letter a few years back that they sold the car to get money back of course. I know I am going to respond within 20 days, thanks for all the information on this site.I don't have the original contract but will rfequest it from them before the court date. The original amount I owe is $5562.34 plus interest in the amount of $5,237.67.
My questions is:
1. Can I argue the interest fees, and if so how?
2. I paid over $24,000. I'm sure in 5 years I paid on it which is how much the car was when I bough it, Can I tell the judge I already paid for it and returned it? I know it sounds silly but could I have an argument?

[ScottGem]

You contracted to pay a certain amount per month for a certain period. If you did not pay that amount, then you left a balance. When you turned in the car, they sold it and applied the proceeds against the balance. Whatever balance was left, you are responsible for. If left unpaid, interest continues to accrue on that balance and with interest and fees, the balance could easily double in 5 years.

So no, that argument is not going to fly with the court. What you can try is negotiating a settlement with the creditor.

[AK lawyer]

You also might want to look at the statute of limitations. This site says the SOL for an "open account" is only 3 years, although if they can prove a contract or a note, it would be longer.