Collecting $35,000 debt from client

[Zigner]

For some reason, I thought this thread related to a California matter. I apologize for that error.

It's unfortunate (for the OP) that this is a COLORADO matter. In CO, it's entirely possible that the entire "loan" will be struck down due to this ludicrous interest rate. That would mean that the OP gets NOTHING.

 

[rw1434]

Some much for valid advice on this thread...
Colorado actually has a 45% max interest!



"Legal Maximum Rate of Interest8% if there is no agreement (§5-12-101); maximum rate that may be contracted for is 45% (§5-12-103); interest on consumer loan may not exceed 12% unless made by supervised lender (§5-2-201)
Penalty for Usury (Unlawful Interest Rate)Criminal penalty for knowingly exceeding 45%, Class 6 felony (§18-15-104)
Interest Rates on Judgments8% if none specified in contract; if contract rate is variable, then at rate on day of judgment (§5-12-102[4])
ExceptionsSavings and loans (§11-41-115); mortgages (§5-13-101); business and agricultural loans (§5-13-102); small business loans (§5-13-103)"

 

[Zigner]

Some much for valid advice on this thread...
Colorado actually has a 45% max interest!

Maybe you missed that fact that the interest rates are "Annual" rates...that means you expected to collect over 1,300% interest (as was pointed out above.)

 

[Zigner]

And just to be clear: You're premium vs. interest word-games won't fly either:
(2)The term "interest" as used in this section means the sum of all charges payable directly or indirectly by a debtor and imposed directly or indirectly by a lender as an incident to or as a condition of the extension of credit to the debtor, whether paid or payable by the debtor, the lender, or any other person on behalf of the debtor to the lender or to a third party.

(From: http://codes.findlaw.com/co/title-5-consumer-credit-code/co-rev-st-sect-5-12-103.html)