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Auto Loans and Repossession Creditor actions following late payment or default on motor vehicle loans.

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Old 02-03-2006, 04:28 PM
buckeyesfan buckeyesfan is offline
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Default Verbal car loan agreement
In the spring of 2003 a friend loaned me 15,000 dollars for a new car. I agreed to pay atleast 200 or more a month. I have paid more than that and now have paid off 7,500. After a argument with this friend, she has threatend to take me to court. She is saying that she will sue me for every penny and say I havnt paid a dime. Of course in the heat of the moment I told her that she didnt have a leg to stand on with no contract, which was probally stupid of me.

My question is this. It was a verbal agreement and all payments were made in cash. What can she do in court and what are my options in the state of Ohio. Thank you.
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Old 02-05-2006, 05:14 PM
Mr. Knowitall Mr. Knowitall is online now
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Default Swearing Contest
If you both tell the truth, the contract will be enforced pursuant to the agreed terms. If one or both of you lie, the court will have to try to decide what the truth is.
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Old 02-11-2006, 04:08 PM
buckeyesfan buckeyesfan is offline
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How does the court go about telling the truth with so little evidence?
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Old 02-11-2006, 05:10 PM
aaron aaron is offline
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It's not always easy. The plaintiff has the burden of proof, for what that's worth, so if the judge doesn't know who to believe the defendant should prevail.
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Old 02-12-2006, 09:30 AM
lwpat lwpat is offline
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There is also a Statute of Frauds limitation. If the contract was to be for over one year it is not enforceable unless it is in writing. My suggestion would be for a third party you both trust help in putting down exactly how much you owe and how much you are going to pay per month and getting both signatures on the contract. Then you are both protected.
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Old 02-12-2006, 09:42 AM
aaron aaron is offline
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I don't see the Statute of Frauds as an issue. First, if the contract were void under the Statute of Frauds, the parties would have to be restored to their original position, which would require repaying any balance of the money. Second, even if the Statute of Frauds initially applied, the subsequent partial performance of the contract would likely take the contract outside of the statute.
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