I met a guy on craigslist , he gives personal money loans, I borrowed 500 dollars from him and I let him hold my motorcycle title as collateral. We had an agreement to pay 65 dollars a week back for 10 weeks. When I met him the following week to make first payment he tried to tell me he wanted more money from me. We got into a major argument and we both stormed off. This was about a year ago , he filed to take me to small claims court which we have a date next week. But now three weeks ago I found my motorcycle missing I filed a police report but I think he might of repossessed my motorcycle. I haven't been notified that he did so but I think he did. Is he allowed to just take my motorcycle?
1 Answer from Attorneys
No. Furthermore, there are limits to what interest he can charge on the loan. If he exceeds the limit the interest is considered usery and not only can the interest be forfeit, but the principal as well. Upon your facts, you were to repay $650 on a $500 loan in 10 weeks...or slightly less than 1/5 of a year. So, if you multiply the $150 interest by 5 you would be paying $750 yearly interest on the $500 borrowed. That's over 100%! That is criminal usery. He forfeits the interest and the principal and can be charged with a crime. Was the agreement in writing? How can you prove the terms?