personal loan problem

[Sjhoag]

i loaned a friend $500 with the agreement that he would pay me $625 within 7 weeks. loan was made by check with notation "personal loan". when it was two weeks late, i contacted him and was told that due to unforseen circumstances the loan could not be paid for an indefinite period of time. i have only the check and a verbal agreement. i made it clear to him that i could not make the loan unless it was absolutely guaranteed that nothing would prevent the timely re-payment. what are my chances in small claims court? my state of residence is nh and my friend lives in me. which state do i file in? how do i find appropriate court? i would appreciate any help in this matter. thank you...steve

 

[JenniferH]

You should sue in the state/county he resides. Your amount would probably be covered in small claims court or similar court. However, I would first write to "friend" certified RRR stating that you and he entered into an agreement, that you demand payment with in _____ days and that if payment is not made by that date you will have to take legal action.

Judgment rendered will be of course up to the judge who ultimately makes the final decision upon entering your proof. Gather as much evidence you have regarding this "agreement".

Of course, once you win a judgment, it will be your responsiblity to collect the money. Does this guy have any assets? You also need to find out what enforcement procedures you are allowed in the state of Maine thru whatever court you file in.

Good Luck,

 

[Sjhoag]

Thanks for your reply

Thank you very much for your reply, Jennifer. Greatly appreciated.

 

[JETX]

One HUGE problem you are going to have....

The interest rate you charged ($125 on $500 for 7 weeks) is a violation of MOST states usury laws (since you didn't read the BIG RED TEXT at the top of the screen, we can't tell what yours is!!).

The court will very probably take this into account when you try to collect and either deny the interest, or maybe the entire debt.

 

[Sjhoag]

Thanks for reply. Greatly appreciated. However, my state of residence is nh, as I stated in the text of my thread, his state is maine. (Guess I should have made that in BIG RED LETTERS for you!!) Also, I did not charge him 125, he offered me 150, and I reduced it to 125. Not a demand on my part, HIS offer. I would gladly settle for my 500 at this point and maybe 50 for my troubles. thanks Steve

 

[JETX]

I guess that I overlooked the states since they were all in lower case. I just assumed that your sentence meant:
my state of residence is n(ot) h(ome) and my friend lives in me (won't even touch this one!!).

And it makes no difference whether he offered that high an interest or whether you offered a lower one. The only concern is that your agreement includes $125 interest on $500 in 7 weeks. That is USURY (illegal rate of interest) and you would benefit from it.

 

[Sjhoag]

the big red letters also say to type in lower case letters! But seriously, we joked about the "usurious " rate when he practically begged me to accept his offer. Are you aware, though, that nh sets no limit on the interest rate that a credit card company can charge it's customers? I know that from painful experience. Thanks for the feedback halket

 

[diy45]

Halket is an idiot. Ignore him

Not an uncommon situation for small claims court. You could easily prevail.

 

[Sjhoag]

chance in court?

Thanks for the reply, diy45. It seems to me even if the amount my friend offered me is usurious, that is no excuse for (a)not paying me back at all and(b) not calling me for two weeks to let me know he was unable to. Next time he can go to his bank for a loan(good luck buddy!) If I was a bank or credit card co. I could not only raise his interest rate as high as I pleased and pile on fee after fee, but I could harass him and his family unmercifully day and night. He's agreed to pay me $50 every 2 weeks. I'm trying to be a nice guy about it. We'll see. Thanks. I appreciate all feedback for my little problem

 

[JETX]

Wow, called an idiot by someone who knows nothing about anything. I feel that I have finally made it, thank you.

And we know why he (elvis, happyroach, micmac, etc.) came up with his 'handle'... Do It Yourself! Couldn't find anybody to do it with!!!

 

[Sjhoag]

Peace, brother

Just remember, halket, I did NOT call you an idiot. I appreciate your and anyone else's feedback who cares enough to take some time and respond to my little posts. Y ou have my gratitude sj