Legal Question in Credit and Debt Law in California

I recently went to a free real estate seminar which turned out to be a sales promotion for their real estate products. While there, I was approached by a woman who asked if I would partner up with her, on the $2000 program. I told her that would require me to pay half, $1000, and I told her I am low-income and that I don't have even a fraction of that $1000, and therefore, I was not interested. She then stated that would be okay, because, according to the seminar, you would make money with this program within 3 months, or you would get a refund. She said I could pay her back when we "start making money". She said she was interested in partnering up with me because I have good computer skills (which are required), and she did not. There was no handshake or anything for the agreement. The only thing which occurred was that we both signed papers indicating to the real estate seminar's company that we were partners. After she paid, we then were required to attend a 3 day seminar. After we atteneded, she realized that this was not for her, due to its difficulty, and asked to get her money back. But, because it had been more than 3 days since she paid, they said that she cannot get her money back right away because the guarantee was that after 3 months, you can get it back, but only if there is proof that you utilized customer support and actually took the steps to try the program. So, I told her that I would give it a go on my own, since she doesn't even own a computer. I did this, basically for the sake of her to get her money back after 3 months; either by a refund from the company, or by myself actually making money from the program, and paying her. This occurred about a month ago, so there are 2 months left. I have not made money from this program, and it is starting to smell fishy to me, and I may never make money from it. But now she is calling me and telling me that I need to pay her money anyway, because the $2000 was put onto her high-interest credid card, and she is now expecting me to pay that interest. She is stating that I agreed to this over the phone, and I did not. She never mentioned in the beginning to me about paying any interest on her card purchase, until recently. I keep telling her I am low-income, and my husband and I are on Social Security/SSI, and there is no way I could pay interest, and that I would not have ever agreed to such a thing on my fixed income. I imagine the interest after only a month on $2000 could be a couple hundred dollars that would only continue to accrue. She is also telling me that, since I am low-income, I should contact Legal Aid so that she can get her money back. I'm not even sure Legal Aid could help in a case like this, and not even sure that, they could help her get her money back when I am the one contacting them, and I am not the one who paid for the real estate program. She has loaned me the materials so that I can continue to try out the program and see if I can make money from it, but I have not so far. To make matters worse, she has a strong Korean accent, and I have a lot of trouble understanding her, and I imagine it is the same with her understanding my native English. Is there anything I can do in this situation, if she were to try and sue me for this money she claims I owe her?


Asked on 4/15/10, 8:11 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

You put yourself into a bad situation in making a verbal agreement as to a complicted matter. It seems that you have obligated yourself to make a good faith effort to try to make money via the program. If you do so, either you will make some money [doubtful] or she will get a refund [she should get a statement in writing from the company as to exactly what ust be done to get the refund]. You do not appear to be liable for the interest payments1

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Answered on 4/20/10, 11:36 am


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