Personal loan without note

What is the name of your state? Idaho

Between 1997 - 1999, an acquaintance gave me money to get through some tough times. There was no written agreement to pay the money back, but I did make the comment of "I'll pay you back" and I have used the terms "debt" and "balance" in some email correspondence regarding this situation. Now I have received a demand letter from an attorney which over-exaggerates the original dollar amount and includes an accumulation of 12% interest over the years (they claim the total amount due is now $25,000). The letter states if full payment is not received in 10 days, then they will proceed with legal action.

1. Since there is not a signed written agreement for repayment, what are the chances of him winning if this proceeds to court?

2. The demand letter states that the last "loan" was "in the fall of 1999" (since there was not a written agreement, they are unable to name a specific date). What is the Statute of Limitations regarding this situation?

3. Is the process of 'demanding validation' applicable for private loans. Or does that process only apply to consumer collections?

Any suggestions on how I should proceed?

Perhaps I placed this posting in the wrong forum to generate a response. Can I move this posting to another forum now in hopes that somebody will see it who may have an answer for me? Or do all of the 'advisors' look in all of the forums?

Just hoping to get an answer to some of my questions in the original posting. Thanks for your time.

[bigun]

Call your friend and try and workout an arrangement. That's more than acquaintance, that's a real friend that deserves a better fate.

I appreciate your thoughtfullness in the response, yet as always, there's more to the story than what is mentioned in this posting. I'm really hoping that someone can answer my 3 questions. Thank you.

[HomeGuru]

[quote]Originally posted by mallmouse59
[b]What is the name of your state? Idaho

Between 1997 - 1999, an acquaintance gave me money to get through some tough times. There was no written agreement to pay the money back, but I did make the comment of "I'll pay you back" and I have used the terms "debt" and "balance" in some email correspondence regarding this situation. Now I have received a demand letter from an attorney which over-exaggerates the original dollar amount and includes an accumulation of 12% interest over the years (they claim the total amount due is now $25,000). The letter states if full payment is not received in 10 days, then they will proceed with legal action.

1. Since there is not a signed written agreement for repayment, what are the chances of him winning if this proceeds to court?

**A: very good.
*******

2. The demand letter states that the last "loan" was "in the fall of 1999" (since there was not a written agreement, they are unable to name a specific date). What is the Statute of Limitations regarding this situation?

**A: the sol started on the date of your receipt of the demand notice.
********

3. Is the process of 'demanding validation' applicable for private loans. Or does that process only apply to consumer collections?
**A: I am sure the friend will validate the laon in court.
*********

Any suggestions on how I should proceed?

**A: negotiate a payment plan and stop being a deadbeat.