Legal Question in Credit and Debt Law in California

Promissory Note with 21% interest, dated 1995, Is it enforceable?

I have borrowed 10K on a promissory note that I signed when I lived in Texas in Jan 1995 and sent it to my friend living in California and made payments from time to time for a total of $6K todate. The guy plans to sue me based on the note for full payment of debt. He claimed that all the payments I made did not even cover the interest. Also, last month, I and my family were harassed in a social gathering (witnesses) with our other friends by calling us foul/filthy language and yelling that I owe him $20,000. His wife later on called my wife and demanded $35,000 as re-payment of debt in cash, right away. What are my re-courses? Is the note legal due to usurious interest rate? Should I settle this out of court for, say, $5000? or fight it out in court. I have received a letter from his attorney that he would settle for $15000 as payment in full.


Asked on 12/24/02, 3:31 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Promissory Note with 21% interest, dated 1995, Is it enforceable?

It depends on the date of breach. Please advise me the last time that you made any payment. Also, interest which is not a business debt over 10% in generally not enforceable and you may have a claim for usuary.

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Answered on 1/02/03, 1:48 pm
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Promissory Note with 21% interest, dated 1995, Is it enforceable?

This guy is intentionally attempting to inflict severe emotional distress, a tort, upon you and your family. My advice is to sue the B_______d for intentional infliction of emotional distress and see what kind of a settlement you can work out at that point.

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Answered on 12/24/02, 10:03 pm


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