Loan in Default

[BrooksR]

What is the name of your state?
California

I made a personal loan to a friend: a three-year, no-interest loan of $7,500, with equal monthly payments. After about three months, this “friend” stopped paying, and now responds with hostility to my reminders. The terms of loan are set down clearly in writing, signed/dated by this friend (but not notarized). I have the original of this document. I also have this person’s address, phone, e-mail, date of birth, and social security number.

Can I enlist a collection agency? Do I have legal recourse? Can I, at a minimum, report this to a credit bureau so that this default appears on this individual’s credit record?

[debtcollector`]

Nothing makes enemies of friends like money.

Can you hire a collection agency? Sure but why would you -- your best course of action would prbable be to file suit against him in your local court. Talk to an attorney and make sure the attorney's fees are added to the tab.

The court will take care of placing the judgement on his credit -- and you stand a better chance to recover your money.

DC

PS Do not use a lawyer that wants a percentage of the award -- use one that will bill hourly so it can be passed on more effectively.

[BrooksR]

Thank you!