I loaned a friend money

[red12spade]

What is the name of your state? California

7/2002 I loaned two friends of mine $2000 to help one of their friends pay rent. The two of them told me that in exchange for the $2000 loan that they would pay them back $3000. Therefore, I would get $1000 back in one month and the other $1000 back within the next three months. I did make my friends sign a small contract with me stating these terms. They have not repaid any of it, and I have been easy on them merely for the fact that they are friends of mine. However, now that I really do need my money back, both of them are avoiding me. Is it too late to take this to court and sue, and if so, how do I go about doing it?

 

[I AM ALWAYS LIABLE]

The Voice of Conservatism

What is the name of your state? California

7/2002 I loaned two friends of mine $2000 to help one of their friends pay rent. The two of them told me that in exchange for the $2000 loan that they would pay them back $3000. Therefore, I would get $1000 back in one month and the other $1000 back within the next three months. I did make my friends sign a small contract with me stating these terms. They have not repaid any of it, and I have been easy on them merely for the fact that they are friends of mine. However, now that I really do need my money back, both of them are avoiding me. Is it too late to take this to court and sue, and if so, how do I go about doing it?

My response:

First, you have a written notation of the loan. That's a good thing. That means, in California, you have a 4 year Statute of Limitations from the date of the "note" to exercise your rights to sue.

Second, if you go to court, you're not going to get the $1,000.00 interest. Ever heard of the word "Usury"? In California, private parties cannot charge more than 10% interest. Anything above that is "usurious" (unlawful) and unenforceable. If you sue, you'll only be awarded the principle sum of $2,000.00.

You "go about" exercising your rights by going to your nearest courthouse to where the "note" was signed, and go to the Small Claims filing window. Tell the Clerk you need the forms to file an action.

Good luck.

IAAL