Legal Question in Credit and Debt Law in Pennsylvania
which law covers the collection of a loan to a friend, no signed papers, but computerized copies of promise to repay. two years ago.
1 Answer from Attorneys
What you do not tell me is where the loan was made, where the parties lived at the time, where they lived when the promise occurred and where they live now.
Generally, if you are the lender, you sue in small claims (assuming you meet the jurisdictional requirements - meaning that you do not sue for more than the state allows you to sue for) where the borrower resides. If the amount of the loan is more than the state limits, then you sue in regular court.
Assuming this is PA, the limits are $8,000. If you are suing for more than that but the claim is less than $25,000, then the matter is heard in the arbitration division of the court of common pleas in the county where the borrower resides. You are going to have to prove their was a loan, not a gift, and a computer printout may or may not cut it (I have not seen it so I cannot say).
You also do not indicate how much was borrowed, the interest rate (if any), when repayment was to be made, if any repayments were in fact made (this might be enough to help prove this was a loan, not a gift) or whether any written demands for repayment were made. The written demand must be made - phone calls and emails do not really cut it.
Next time, if you are going to act as banker, use a written promissory note. There are plenty of them available for free on the internet.