Legal Question in Civil Litigation in Arkansas
Loaned a friend money on my credit card
A friend called and ask to borrow some $$ because he was in a business adventure with his cousin.When he ask I first said no because I had no $$, He talk me into wiring him $8500.00 on a credit card and promised to pay $0.50 on the dollar for the loan and said it would be paid in 30 days. At that time I explained that if for any reason it was not paid he had to make the monthly pymts on the credit card and that my credit was exellant but there was no way I could make those pymts. Some of the monthly pymts were made by the business he owned with his cousin. The cousin lost the business and no more pymts were made. Now my credit is no good. All my cards now have a high interest rate. At the time of loan, interest rate on cards was 9.99% or lower. Do I have a case? I want him to repay the loan and at his orginal agreement $0.50 on the dollar. This happened about 2 years ago. Also if I can sue is there a time limit?
1 Answer from Attorneys
Re: Loaned a friend money on my credit card
You may have a good case against your friend, as far as collecting the debt. You cannot legally charge him 50% interest on a debt. That is called usery. There is a maximum rate of interest that anyone is allowed to charge on a debt.
The biggest problem will be proving the loan, since you don't have anything in writing. Also, whether or not your friend now has any money to collect from him.
You can attempt to sue for a judgment against him. An attorney will normally charge a percentage of what he collects to file a suit for collection of a debt.
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