Need help Pysco EX is sueing me

[Tiesto07]

What is the name of your state? New Jersey

here's the story:
Back in 2001 my girl made out this half ass agreement on print paper (3 sentence Long) saying that she will lend me $300 to fix my car. I signed it jokenly and not realling taken it serious. Now November 2004 i get this letter from the courts stating that i am being sued by her for $2200. She claims that the letter stated if not payed back within a week she will add $10 a week which is now equaling up to $2200. I only signed the letter for $300 dollars that i owe her and i do not never recall seeing the part of $10 dollars a week. My concern is that she added that part on to the half ass written contract and at the same time she add stuff that was not on the contract and while we were going out. I'm in the military so i was never home but after she loaned me the money in 2001 and as months went by and we were both happy we both forgot about it....we finally broke up in 2003 and then she started pursing the money. I recall her mother calling me around July 2003 stating she wanted the money and i said ok ...just let me talk to her and that was the end of it........next thing you know now Nov 2004 i'm being sued for 2200, this is outrages!!!

Throughout the relationship i paid several times fixing my car do too her jealousy (scratching my car, messing up my interior, etc) and i even had a verbal agreement that i would pay for her to come see me in North Carolina while we were going out, so we can call it even and she ok to that...Now she is pulling this crap on me..I believe she added alot to that half ass written printer paper contract.she wrote and is making it seem worse then it really was......

first thing is first when her mother called me i never refused to pay her back i only said ok let me talk to her (my EX)...to me it sounds like they waited until the $10 added up to then do something......Does she really have a case.....and if so do you think i should hire a attorney or fight this my self....also could that really be a legal document she has on me, even though there is a chance she is forging it? also all the stuff i paid for her while i was going out IE fixing car, her expenses, and trips can i use her it against her. She also was a very protective and violent person does that have any merit on the case?

thanks
John

 

[BelizeBreeze]

Since you have a written contract and (using simple math) the interest rate falls within the 30 to 35% rate, your little friend can be found guilty of criminal Usury, the loaning of monies in excess of statutory limits.

The current New Jersey usury statute is based on the 1877 Revised statutes.1 In the 19<sup>th century, the maximum permitted interest rate on a loan of money was 6%, a rate that today would have the effect of terminating the credit business in New Jersey.

Later, the statute was amended to establish two rates: (1) 6% per year on an oral contract to lend money or any thing of value, and (2) 16% per year if the contract is written and the contract specifies the interest rate.2 The statute itself contains several exceptions to the two base rates.3 The most important exceptions are the ones for first lien mortgages for residential property, and for other loans exceeding $50,000.

Viewing the above discussion, you may, at first glance, fall within number 2, since this provision stipulates a written contract. However, since your written contract does not specify a percentage rate assignable to the loan, it can very easily be voided and thus the legal rate of interest that can be charged would be 6%.

Write her a certified (RRR) letter and NICELY offer to pay her back $350 for signing, within 5 days, a release of any further debt or obligation or you will have no option but to contact the district attorney's office and file criminal usury charges against her.

 

[Tiesto07]

i really dont want anything to do with her so should i just go to court and settle it there or do you think it will be better for me to write her a letter....what do u think the chances are me in the court?

 

[JETX]

i really dont want anything to do with her so should i just go to court and settle it there or do you think it will be better for me to write her a letter....what do u think the chances are me in the court?

Let me give you an ACCURATE answer......
You are semi-screwed. By signing that document and not getting (and keeping a copy) you are pretty much stuck with it.... assuming it can withstand your challenge as to the additions.
If it does, then you will very likely get stuck with the original $300 agreed loan PLUS the maximum allowed interest rate..... which is 6% if NOT set in contract, or 16% if set in contract.
http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=148873&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&jump=TITLE 31&softpage=Document42#JUMPDEST_TITLE 31

 

[BelizeBreeze]

Although I hesitate to disagree with MR. Jet , I would NOT argue the additions to the contract. I would accept it on its face.

Simply put, the contract stipulates a dollar amount, not an interest rate per the strict language of the statute. That, in and of itself, is enough to seek judicial review of the validity of the contract.

Also, because the loan does not fall within one of the exemptions to the usury statute, I agree that 6 or 16% is the statutory range that can be charged. However, I do not agree to the 16% since, under statute, for the 16% rate to be valid, the following conditions BOTH must be affixed: "16% per year if the contract is written and the contract specifies the interest rate."

While the contract is written, no interest rate is specified. It is not enough, I agree, to void the contract, but it is enough for judicial review.

Therefor, I would offer a settlement at the lower rate of 6% or take your chances in court since, and I agree here with JETX, you OR your ex might be half-screwed. Depending on how strict the judge wants to interpret the statute.

 

[JETX]

Although I hesitate to disagree with MR. Jet

No argument here, as I never stated what interest rate, if any, the court might apply. I was only posting the legal facts, in response to the incorrect statement: "your little friend can be found guilty of criminal Usury, the loaning of monies in excess of statutory limits."

Per NJSA:
2C:21-19 Wrongful credit practices and related offenses.
For the purposes of this section and notwithstanding any law of this State which permits as a maximum interest rate a rate or rates agreed to by the parties of the transaction, any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law, except if the loan or forbearance is made to a corporation, limited liability company or limited liability partnership any rate not in excess of 50% per annum shall be a rate authorized or permitted by law.
Source: http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=158523&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record={1591}&softpage=Doc_Frame_PG42

 

[BelizeBreeze]

No argument here, as I never stated what interest rate, if any, the court might apply. I was only posting the legal facts, in response to the incorrect statement: "your little friend can be found guilty of criminal Usury, the loaning of monies in excess of statutory limits."

Per NJSA:
2C:21-19 Wrongful credit practices and related offenses.
For the purposes of this section and notwithstanding any law of this State which permits as a maximum interest rate a rate or rates agreed to by the parties of the transaction, any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law, except if the loan or forbearance is made to a corporation, limited liability company or limited liability partnership any rate not in excess of 50% per annum shall be a rate authorized or permitted by law.
Source: http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=158523&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record={1591}&softpage=Doc_Frame_PG42

And no argument here because at 10$ per week on $300 the interest charges falls well over the 30% threshold.