Legal Question in Credit and Debt Law in California

Re: loaning a friend monies

You should have purchased the bike yourself and then let him buy it from you, while you retained title. That way, if he defaulted, you could have repossessed the bike. By loaning him the money and receiving no security, there is no guarantee that he will repay you. You can have him sign a promissory note, but again, unless he gives you an interest in the bike (i.e. the pink slip), you really have no leverage.

At a minimum, make sure you have his written committment to repay you a specific amount each month until an agreed upon total is paid in full.

Re: loaning a friend monies

can you be more specific,like whether the loan given through crossed cheque or you directly paid to the dealer who sold the vehicle in your friend's name.If the answer to both the above questions is yes then you simply make a promissory note.Thats it.