[skibot]

I recently loaned another person $1.00 with the agreement that it would be paid back, plus the amount of 100% interest compounded daily. I even had him sign a contract with me.

He told me that the money plus interest would be paid back quickly, and had no problems or complants about the deal.

Well, he paid back the $1.00, but no interest, which is now up to $2,408. I was wondering if I am able to take him to small claims court and sue for the amount of the current interest.

[Anonymous]

Your contract would run afoul of the "usury" laws of your state - that is, you are charging an unlawfully high interest rate. The ramifications of this will vary - but typically at a minimum you will not be able to recover any interest because of the illegality. In some jurisdictions, usury can also be a criminal offense.

In short, be happy you got your dollar back.