Legal Question in Business Law in Florida

RE: Loan From Family Member

There is no modification, they have just notified me that as of Augus 1st, my new interest rate will be 20% for the term of the loan. I was under the assumption, that I would have to agree to any changes in the original agreement, and if they do take me to court, it will just be a judgement against my credit until I am able to repay the loan, correct?? There is no negotiating anything with this family member as they are totally unreasonable.


Asked on 6/30/09, 9:26 pm

1 Answer from Attorneys
Sarah Grosse Sarah Grosse, Esquire

Re: RE: Loan From Family Member

Is the original agreement in writing? What is technically happening here is a breach of contract (you not paying) and an attempt at modification (increased interest rate). Contracts must have consideration, and I guess the consideration here is you agree to an increased interest rate in exchange for not getting sued. So, again, you don't have to agree to the increased interest rate. But, your other option is to get sued and have a judgment on your credit. I guess if there is no negotiating, those are your choices. I can't think of any creative way around that.

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Answered on 6/30/09, 9:57 pm


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