Personal Loan Gone Wrong

[flowed83]

I live in the capital of California, and recently a friend offered to me a verbal loan for 1600 to pay for school tution, until my financial aid went through. There was no promissary note signed or contract or anything of that nature done, however, I have indeed told him that when I get my financial aid check that I will return the amount owed. Well, then I get a threatening e-mail telling me that "appropriate actions will be taken" if he doesn't get the money now, its been about a month and my question is as follows:

Without a promissary note, what legal power does he have to collect the funds?

It was my understanding that theres not much he can do, I still intend to pay him back the money, but I cannot pay back money I do not have. Its been about a month and I have checked with my school and they told me the check will be sent out in a few weeks, but I am not sure what the legal stance is here. Can someone please help?

Thanks,
Mo

 

[tessa]

Basically, as long as the SOL in your state have not expired, the other person can legally pursue action in trying to collect this money. "Verbal Agreements" are not as strong as written ones, however if the other person can produce documentation of the money exchanged (cancelled checks etc), they may win the case. That is if they decide to pursue this issue. It will boil down to whom the Judge chooses to believe. I will tell you the other person will probably win if they have their documentation in court.. Good Luck!

 

[tranquility]

Verbal agreements are as strong as written ones, they're just harder to prove.

Where would you be now if they had not loaned you the money in the first place? Would you be in a better or worse place if you worked hard, sold some stuff and scrimped and saved enough to pay the person back from this moment forward. I remember living on macaroni and cheese for a month one time because I knew I wouldn't have come up with the rent once when I was young. What can you give up to pay the person back?

Friends borrowing from friends often screw up a friendship. The only way it doesn't is when the person borrowing puts paying back the money before *anything* else.

 

[Mnzy]

Loan w/ intent to pay but...

What are my rights as a defendent in a case
where my ex fiance' want's to sue me for money that I borrowed prior to
our engagement. After the the engagement she verbably agreed that we
would share all debt and profit alike. one day after the break up she
declared that I pay her the initial monies borrowed. In return I asked her
for the engagement ring, but I received no comment in regards to it. I
haven't rebelled against her, but she has gone forward with legal
measures as if I have denied her claim.
Should we end in a courtroom setting, can she add other expense like
air fair, for she lives in New Jersey and I live in Georgia.

 

[Zigner]

What are my rights as a defendent in a case

It is rude to hijack a thread.
Start your own.