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Loaned my boss $15k, now she won't pay me back

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cmiller633

New member
Hi everyone, I'm looking for advice on what to do regarding a personal loan. I loaned my boss $15,000 last May and she has now cut off all contact with me and is refusing to pay me back. During her proposition she offered to give me an extra $3,000 in interest, therefore making the total owed amount $18,000. At this point I don't even care as much about the interest but I do want my original amount back. I've contacted 2 lawyers and had a certified letter sent to her from my first lawyer letting her know she has 10 days to start paying me or I will take her to court. The letter was returned to the law office, so she either didn't receive it or refused to sign for it? I'm not sure. My lawyer says we can move forward with filing a lawsuit, but it'll cost $1,500 just to get started with the suit (I've already put in $700 in legal fees) and then $350 an hour after that. My lawyer says I have a solid case, but I'm afraid I'll have to spend tons of money just to get mine back from her. And I'm also afraid I won't win, or that I'll win but won't ever see anything from her. I can give out more details if anyone has questions, but I wanted to keep it as concise as possible. Any advice at all would be greatly appreciated, I feel so stuck and I'm not sure what to do. Thanks.

I'm in Pennsylvania by the way.
 


Litigator22

Active Member
Hi everyone, I'm looking for advice on what to do regarding a personal loan. I loaned my boss $15,000 last May and she has now cut off all contact with me and is refusing to pay me back. During her proposition she offered to give me an extra $3,000 in interest, therefore making the total owed amount $18,000. At this point I don't even care as much about the interest but I do want my original amount back. I've contacted 2 lawyers and had a certified letter sent to her from my first lawyer letting her know she has 10 days to start paying me or I will take her to court. The letter was returned to the law office, so she either didn't receive it or refused to sign for it? I'm not sure. My lawyer says we can move forward with filing a lawsuit, but it'll cost $1,500 just to get started with the suit (I've already put in $700 in legal fees) and then $350 an hour after that. My lawyer says I have a solid case, but I'm afraid I'll have to spend tons of money just to get mine back from her. And I'm also afraid I won't win, or that I'll win but won't ever see anything from her. I can give out more details if anyone has questions, but I wanted to keep it as concise as possible. Any advice at all would be greatly appreciated, I feel so stuck and I'm not sure what to do. Thanks.

I'm in Pennsylvania by the way.
Why don't you "unstuck" yourself, kiss off your avaricious lawyer and sue the deadbeat in proper person. Zillions of laypeople do it every day. If you want some help in going about it, ask.
 

Bali Hai Again

Active Member
Hi everyone, I'm looking for advice on what to do regarding a personal loan. I loaned my boss $15,000 last May and she has now cut off all contact with me and is refusing to pay me back. During her proposition she offered to give me an extra $3,000 in interest, therefore making the total owed amount $18,000. At this point I don't even care as much about the interest but I do want my original amount back. I've contacted 2 lawyers and had a certified letter sent to her from my first lawyer letting her know she has 10 days to start paying me or I will take her to court. The letter was returned to the law office, so she either didn't receive it or refused to sign for it? I'm not sure. My lawyer says we can move forward with filing a lawsuit, but it'll cost $1,500 just to get started with the suit (I've already put in $700 in legal fees) and then $350 an hour after that. My lawyer says I have a solid case, but I'm afraid I'll have to spend tons of money just to get mine back from her. And I'm also afraid I won't win, or that I'll win but won't ever see anything from her. I can give out more details if anyone has questions, but I wanted to keep it as concise as possible. Any advice at all would be greatly appreciated, I feel so stuck and I'm not sure what to do. Thanks.

I'm in Pennsylvania by the way.
I wouldn’t loan Warren Buffet any money, that’s what banks are in business to do. That quick 3 grand was tempting and clouded your judgement. Good luck getting your money back.
 

quincy

Senior Member
Hi everyone, I'm looking for advice on what to do regarding a personal loan. I loaned my boss $15,000 last May and she has now cut off all contact with me and is refusing to pay me back. During her proposition she offered to give me an extra $3,000 in interest, therefore making the total owed amount $18,000. At this point I don't even care as much about the interest but I do want my original amount back. I've contacted 2 lawyers and had a certified letter sent to her from my first lawyer letting her know she has 10 days to start paying me or I will take her to court. The letter was returned to the law office, so she either didn't receive it or refused to sign for it? I'm not sure. My lawyer says we can move forward with filing a lawsuit, but it'll cost $1,500 just to get started with the suit (I've already put in $700 in legal fees) and then $350 an hour after that. My lawyer says I have a solid case, but I'm afraid I'll have to spend tons of money just to get mine back from her. And I'm also afraid I won't win, or that I'll win but won't ever see anything from her. I can give out more details if anyone has questions, but I wanted to keep it as concise as possible. Any advice at all would be greatly appreciated, I feel so stuck and I'm not sure what to do. Thanks.

I'm in Pennsylvania by the way.
Is this person still your boss? If so, how exactly is this boss avoiding all contact with you?

A link with information on how to sue in small claims (note dollar limits):

https://www.palawhelp.org/resource/magisterial-district-courts-1
 
Last edited:

Zigner

Senior Member, Non-Attorney
The OP needs to be careful. The interest on that loan is definitely usurious and could even be considered criminal usury, depending on the expected repayment terms.
 

quincy

Senior Member
The OP needs to be careful. The interest on that loan is definitely usurious and could even be considered criminal usury, depending on the expected repayment terms.
The most that can be recovered in a small claims suit in Pennsylvania is $12,000, plus interest. Suing for just $12,000 might be easiest and best. If successful and a judgment is awarded, it probably will be hard enough just collecting that. Might as well avoid entirely the complications that charging (excessive) interest on the original loan creates.
 

Bali Hai Again

Active Member
3k interest on a 15k loan for 1 year turns out to be 35% if the online calculator is correct. If the OP happens to (very unlikely) recover the 15k with 3k interest, will the IRS will be interested in their cut of the 3k now that the issue has been made public?
 

Zigner

Senior Member, Non-Attorney
The most that can be recovered in a small claims suit in Pennsylvania is $12,000, plus interest. Suing for just $12,000 might be easiest and best. If successful and a judgment is awarded, it probably will be hard enough just collecting that. Might as well avoid entirely the complications that charging (excessive) interest on the original loan creates.
That won't change the underlying usury.
 

cmiller633

New member
cmiller can file suit to collect only part of the $15,000 loan ($18,000 supposedly with interest). He sues for $12,000, no interest.
So I can file in small claims court for only a partial amount ($12,000) and zero interest and the case won't be dismissed or anything? And I won't get in any kind of trouble for the excessive interest? I'm not sure if it matters but I wasn't the one who demanded that amount of interest, she was the one who offered it. But I'm fine with getting no interest.
 

quincy

Senior Member
So I can file in small claims court for only a partial amount ($12,000) and zero interest and the case won't be dismissed or anything? And I won't get in any kind of trouble for the excessive interest? I'm not sure if it matters but I wasn't the one who demanded that amount of interest, she was the one who offered it. But I'm fine with getting no interest.
Do you have evidence to support the $15,000 loan?

It is not illegal to not sue for the full amount of a loan so you can keep the suit in small claims, and it is not illegal to not charge or not collect interest on a personal loan.
 

cmiller633

New member
Okay thank you for clearing that up for me. And yes I do have extensive screenshots of messages from our business app, where she is clearly asking me for the money and I'm agreeing to it, then her sending me the wire transfer info, and then me letting her know I sent it. I have print outs of my bank statement showing the money was sent, and the original copy of the wire transfer paperwork. I consulted with 2 different attorneys who both said I have a solid case and that my screenshots will hold up. One concern I do have is that I didn't send it to her personal account directly, I sent it to her business account which was an LLC and that business no longer exists. Not sure if this will pose a problem, but my lawyers didn't think it would.
 

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