Legal Question in Credit and Debt Law in California
lent a friend over $5000 over 3 yrs ago
Over 3 yrs ago, I lent a friend over
$5000 by letting her use 1 of my cc.
She was going to pay it back based
on the terms of the cc. The org
agreement was $250 per mo. That
never happened. It's been $100 per
mo. Shortly after we did this, I did a
refi on my house. That cc had to be
paid off. At that time, I had her sign
a note for the amount & that it was
at 6%. She has been bad at paying.
About 8 mo ago, I told her that if she
was late 2 mo in a row, I was taking
the interest rate up 1/2% & that late
fees are $25. She paid today 30
days late. She still owes $2476.22.
This is really costing me money. Her
interest rate is now 7%. I'm paying
8.25 on my cc. Any advise would be
very helpful.
Thank you
1 Answer from Attorneys
Re: lent a friend over $5000 over 3 yrs ago
Small claims court would be the best bet. Once you get a judgment (including the agreed interest), you can hire an attorney to try to collect -- either by executing on a bank account and/or levying on her wages.
Unfortunately, you learned the hard way not to loan money to a friend because the loan now has come between you.
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