Loaning someone money..

[m.eberly]

What is the name of your state (only U.S. law)? Ohio

I'm not sure if I'm posting this in the right spot but here is my question anyways!

My co worker has been talking about needing 3 grand to buy her daughter a car. She was also talking about if she could find someone to loan it to her she would pay interest. I have the 3 grand to spear at the moment so I was thinking about it, BUTTTTTT.. Is there anyway I can document all this? Have here sign something? Just in case (rare) she tries to stiff me or give me the run around for a long time...



Thanks in advance!

Matt

 

[Roo]

Please don't start multiple threads for the same question, it's confusing for everyone.

https://forum.freeadvice.com/debt-collections-84/loaning-someone-money-446378.html

 

[DazedandConfusd]

Risky...but your call

You can absolutely draw up a contract like anyone else would including a bank. If in the instance she doesn't pay, then you are justified to collect through the court system. I would have the document notarized and you might even check with a local bank to see if there is some way to collateralize the car in the occasion she doesn't pay. (Not sure if you can do this) Now if you get burnt, you get burnt. And friends are more likely to burn you than others...talking from experience.

If you really wanted to do it, I would draw up a contract and let him/her know that you mean business on this. Think about it...why would they not just go to a bank? You're taking the risk...be sure they know that!

 

[m.eberly]

If some reason she doesn't pay and I take her to court and they order her to pay. Do I get my money in one large sum from the court and she pays them?

 

[Zigner]

If some reason she doesn't pay and I take her to court and they order her to pay. Do I get my money in one large sum from the court and she pays them?

Nope - if you get a judgment, then it's up to YOU to collect.

If daughter-of-friend needs a car, then daughter-of-friend should get her own loan.

If daughter-of-friend and friend can't get loans from a bank, then why do you think YOU are ohhhh so much smarter and more financially savvy?

 

[seniorjudge]

...
Do I get my money in one large sum from the court and she pays them?
...

Proof that no one learns about the court system.

 

[xylene]

My co worker

Loaning a co-worker ANYTHING is stupid. 3k is MEGA-STUPID.

What is the deal went bad? Aside from the fact that you seem to be planning on that which in itself is telling... You don't think that would impact the workplace. Like get you canned.

Great! Out 3K and out of job.

 

[seniorjudge]

...
Loaning a co-worker ANYTHING is stupid. 3k is MEGA-STUPID.
...

True.

So if our poster insists on it, then what he should do is get something from the borrower worth $6K and keep it till the loan is paid off.