I have to pay for credit unions error on a loan??!!

I borrowed $15,000 from a credit union 3 years ago. The loan papers that I signed stipulated an automatic withdrawl of $105 per week. Shortly after I was injured at work and sent back to school and moved away from credit union. Therefore: I was too busy to notice that they were only taking $105 per month. I have paid almost $4,000 in interest and still owe them $15,000. They want to resign (like nothing happened) at1% off of prime, which is 9.5%. Now 8.5% is still around 1.3% higher than the original loan. So I'm paying even more money for a car that is 3 years older?!! This just seems wrong. Why am I paying for their mistake? Can anyone give me some advice on this? What can I do?

That may be tough to argue you never checked your finances.

That is not really a great excuse. Most judges would not buy that as a reason to not pay.

Originally Posted by Unregistered That may be tough to argue you never checked your finances. That is not really a great excuse. Most judges would not buy that as a reason to not pay.

Thank you for your responses. I know that ignorance is no excuse but, school did have me pretty tied up. The point is I am not a professional financial institution. Some one should have caught it. To clarify a little, I was paying a few dollars OVER the actual interest. That should have set off some alarm bells. If they had checked all of my previos loans over the last 25 yrs. they would have realized it was odd. Why in Gods name would I only pay the interest. Thats insane. Also, I'm not saying that I do not have to pay, but I think they could have done better with the interest rate on the "new" loan. At any rate my plan is to put $6,000 down to get under my credit card limit. They are offering 2.9% untill xmas, then 7.9% thereafter. Then I'm closing my account. I usually get kissed first before I get.........I should also point out that no one even apologized, and this gaffe has set me back big time.

You could try to argue they misled you and you relied on them. And sue in small claims court for the extra interest and expenses that you will have to incur now.