Do you pay the legal costs when your creditor's lawyer send you the letter of demand?
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I have taken a hire purchase loan from a insurance company and have delayed the payment for 6 months and I have told them over the phone that I need time to raise the sum accumulated. The whole sum owing is about $2000 which I have prepared to pay them. However, the insurance company has instructed their lawyer to write a letter of demand to me. I was informed by the insurance company to pay their legal cost of about $400 - $500. I was not able to pay the additional cost but when i signed the loan agreement something was mentioned about the indemnifying the borrower for costs incurred in exercising their rights... when I talked to their credit officer, he mentioned this is legally right and banks and telecom companies also practice these??? Is this practice right? Am I legally bonded to pay the legal cost incurred by their lawyer?
Do you pay the legal costs when your creditor's lawyer send you the letter of demand?The insurance company have the right to do that. Under the agreement, the company have the right to ask you to pay for any costs incurred during the process of getting the payment, such as legal fee. This is a norm across all Banks and Financial companies.
Do you pay the legal costs when your creditor's lawyer send you the letter of demand?well i am not a lawyer, but i had studied about this kinda expenses , yes you are bound to pay such expense as the reason is that they had to take this action as you didn't pay the interest or debt, wht ever. but i dont know if something can be done about this expenses. it wud be better if you check this site and ask the expert themselves.
http://www.freewebs.com/lawyersinfo
Do you pay the legal costs when your creditor's lawyer send you the letter of demand?They are within their legal rights to charge you for their legal fees, but sometimes if one plays nice, those can be negotiated, but FIRST, tell them you are ready to pay the bill, and would like to negotiate.
Be ready to pay immediately by credit card, or check card, or overnight a check.
Good Luck.
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