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Is it true that for everything you buy there must be interest involved by law even if youre buying it from a family member?

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Anonymous

Asked by Anonymous at 1:05 AM on Sep. 29, 2009 in Just for Fun

Answers (10)
  • Are you talking about cars and homes? or just items in general? if your buying a car from family and you are making payments to them say $100 per month then no they dont have to charge you interest, as long as they own the car and they dont still owe on it then they shouldnt be charging you interest.
    3_ring_circus_

    Answer by 3_ring_circus_ at 1:23 AM on Sep. 29, 2009

  • You mean buying over time? I don't believe there is a law but it's a generally accepted practice. Make sure you get EVERYTHING in writing precisely. Or get a lawyer involved. I'm quite serious. Money causes the biggest family feuds. Better NOT to get involved in such a deal if you can avoid it.
    gdiamante

    Answer by gdiamante at 1:25 AM on Sep. 29, 2009

  • Its involving a property, but they told me its by law that they have to charge me interest. But some other specialist told me they don't have to so I'm not sure what to believe.
    Anonymous

    Answer by Anonymous at 1:36 AM on Sep. 29, 2009

  • ???
    Anonymous

    Answer by Anonymous at 1:41 AM on Sep. 29, 2009

  • That can not be true. If it is then how can a car company offer you 0% financing?
    Anonymous

    Answer by Anonymous at 1:42 AM on Sep. 29, 2009

  • Your "family" is trying to screw you
    Anonymous

    Answer by Anonymous at 1:54 AM on Sep. 29, 2009

  • There are limits on what sort of interest they can charge you, basically those are usury laws that means they can't, in effect, be loansharking you and charging an outrageous amount of interest.

    But I've never heard of any laws that require them to charge interest. Basically, it's going to be whatever terms you have in the contract.

    Now, of course there is some exceptions, like, for example, if they're selling property that they don't own - they're executors of an estate or something, and the will requires them to sell it at fair market value and under standard contract terms, or something like that.
    sailorwifenmom

    Answer by sailorwifenmom at 2:05 AM on Sep. 29, 2009

  • sailorwifenmom, they do own the property and want to sell it to me, but I'm going to pay it to them within a year so I feel they shouldn't charge me interest but they still want to because they say its a must by law, but I dont believe them.
    Anonymous

    Answer by Anonymous at 2:21 AM on Sep. 29, 2009

  • Hmm. This doesn't smell right to me. I'd go to a third party for the loan; it's bad bad bad practice to go into debt to family members. It will cost you more in interest but preserve the peace. AND look better on your credit record, actually.

    If you don't qualify for a standard lender, then INSIST that lawyers be part of this deal. Otherwise, walk away.
    gdiamante

    Answer by gdiamante at 2:25 AM on Sep. 29, 2009

  • I agree with gdiamante entirely!

    If they own the property outright, they aren't charging you interest because they have to, they're doing it because they want to. No matter what the rates are, they're going to think they gave you a deal and lord it over you, and or you're going to resent them because they should have taken family relations into account and not taken advantage of you.

    Not to mention fights over payments, it not being paid off yet (even if you're up to date on payments), etc.

    You will be MUCH better off going through a 3rd party, or having a lawyer - of your own, not their lawyer (who represents their interests, not yours), look at it and help draw up a contract.
    sailorwifenmom

    Answer by sailorwifenmom at 2:30 AM on Sep. 29, 2009

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