Legal Question in Civil Litigation in Florida
Take The Money and Run
A former friend of mine borrowed 5K from me with the promise to pay back 6k. The funds came out of a rollover IRA. I told him that he had to pay me back the funds within 60 days of receipt or I would incur penalties and taxes. Four months later, I have only received a check for 1K. I asked him why he hasn't paid me the rest of my money and he claims that he made some bad investment deals on rental property. I told him that I needed my money right away because I need it for home improvement. Recently, he refuses to answer his phone or respond to my emails. I have documentation that proves that the money given to him was a loan. He is about to deploy to IRAQ in about two weeks and I told him not to leave the country without sending me payment. I am very frustrated and upset with this. The transaction was initiated in Florida where I live and the former friend lives in MD. What are my recourses and what state has jurisdiction?
3 Answers from Attorneys
Re: Take The Money and Run
Maryland certainly has jusisdiction; Florida almost certainly does. If you were charging $1,000 of interest on a 5,000 loan (20% annual) over a 60 day period -- which brings the annual interest to over 100% that is usurious and potentially illegal. Be careful about what you ask for in the way of interest. About all you can do at this point is bring a claim against him before he leaves.
Re: Take The Money and Run
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
You can file suit in either Florida where the loan was made and the repayment was due or Maryland where the borrower resides. Unfortunately, the amount of interest you were charging is far in excess of what is allowed in Florida and considered usurious. Pursuant to Florida law, all interest can be dissallowed by a court. You would be smart to consult an attorney as to your legal rights and obligations and file suit for damages for the principal amount in question. You may not be entitled to any claim for interest.
Scott R. Jay, Esq.
Re: Take The Money and Run
Bring a small claims court claim against him and just focus on getting your money back and maybe something for legal fees. And don't ever lend to anyone again without an attorney helping you unless you're willing to give up the money.
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