Personal Loan

[xzq1z2]

I loaned a friend $900 18 months ago without stipulating any repayment schedule or interest charges. I have now asked that he repay the $900 loan . He refused. The only documentation I have is a copy, front and back, of a cancelled check with "Personal Loan" written in the memo line. Do I have legal recourse in small claims court? Dan in Ohio

 

[Zigner]

I loaned a friend $900 18 months ago without stipulating any repayment schedule or interest charges. I have now asked that he repay the $900 loan . He refused. The only documentation I have is a copy, front and back, of a cancelled check with "Personal Loan" written in the memo line. Do I have legal recourse in small claims court? Dan in Ohio

Yes, you can sue in small claims court.

 

[sandyclaus]

I loaned a friend $900 18 months ago without stipulating any repayment schedule or interest charges. I have now asked that he repay the $900 loan . He refused. The only documentation I have is a copy, front and back, of a cancelled check with "Personal Loan" written in the memo line. Do I have legal recourse in small claims court? Dan in Ohio

If there was any question about whether or not the loan was to be repaid, the notation on the check removes the doubt, and by negotiating the check, the friend agreed that it was a loan. As long as that notation appears on the check copy, and it can be verified, then yes. You can seek reimbursement in the form of a judgment through the Small Claims courts.

Keep in mind that the court can only award you a judgment. That doesn't mean that the friend is going to pay any more quickly. You will still be responsible for collecting the amount of the judgment.

 

[You Are Guilty]

It's Small Claims - anything can happen. However, merely writing "personal loan" in the memo line of a check does not automatically make it a personal loan if it's cashed. (Heck, I sent a friend a check as a birthday gift and wrote "Sex Change Fund" in the memo line. Doesn't mean it's true).