Legal Question in Civil Litigation in Florida

Loan From Family Member

I borrowed $4200.00 from a family member at a rate of 7% annually. Due to recent financial hardships, I have not been able to keep up with the payments, they now want to raise the interest rate to 20%, can they do this without my express written consent.


Asked on 6/30/09, 7:55 pm

1 Answer from Attorneys
Sarah Grosse Sarah Grosse, Esquire

Re: Loan From Family Member

Your family wants to charge you 20% interest? Wow.

Well, if you have not made payments, then you are in breach of your agreement. They could sue you for the remainder owed on the loan - they don't need your consent for that. Instead, what it seems they are offering is a modification of the agreement wherein they are excusing nonpayment(?) and imposing a higher interest rate. Use this renegotiation to your benefit. You can ask for lower payments, longer duration of the loan, a forebearance period (until employment or other conditions are better), etc.

You don't have to agree to the higher interest rate, but they don't have to excuse your non-payment and not sue you either.

Get this agreement in writing.

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Answered on 6/30/09, 8:17 pm


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