Legal Question in Credit and Debt Law in California

usury

Two years ago, my girlfriend now x, started loaning me money. I told her I wanted to make it profitable for her, and she could charge any interest rate. She wrote up a note for $5000 at 12%. I needed to borrow more money and when all was said and done, she had loaned me a total of $25K over 6 months. She wrote up a new note, which I signed at 15%. I told her I could pay her back when my mother dies. My x agreed but also put in the note that I must remain in contact at least weekly, until the debt is paid off. I didn't understand why she put that in at the time, but I do now, because I broke up with her over the summer and refuse to have anything to do with her. I told her her interest rate is usurious and she's liable for triple damages. She keeps leaving messages that she wants to renegotiate the terms of the loan, but I don't call her back. In fact, I have threatened a restraining order. She filed a lawsuit for fraud (I led her to believe my mother's death was imminent) and breach of contract (since I don't talk to her and ignore her calls). I have ducked being served so far. She has never hurt or threatened me. Should I get a restraining order? Can I sue her for usury?


Asked on 5/17/08, 9:12 pm

1 Answer from Attorneys
Larry Rothman Larry Rothman & Associates

Re: usury

The loan is subject to the usury laws since it is over 10%. You may still be liable for the principal. How many payments have you made? The triple damages only may apply toward the payments. Did she sue you in small claims court or in a limited or unlimited jurisdiction court? Please contact me if you have any questions.

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Answered on 5/18/08, 12:49 pm


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