Legal Question in Credit and Debt Law in Virginia
What's interest got to do with it?
A friend loaned me $400 six months ago. I did not ask her for the money but she offered. I told her that I would pay her something until all was paid. I have paid her $100. She is taking me to small claims court and charging me 9% interest for a loan that had no stipulation about payback terms. Can she legally get this from me. I am not disputing the loan but the 9% has me really stumped.
1 Answer from Attorneys
Re: What's interest got to do with it?
The nine percent interest is the judgment rate defined by law. It applies to any judgment, from the date of judgment, regardless of the cause of action, where there is an award of monetary damages.
On the facts you've described, i.e., where there was no agreement to pay the money back by any particular time on the unsolicited loan from a friend, judgment can't be awarded to the creditor because you're not in default. You can only be in default when the time for repayment has come and gone without payment having been made.
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