$10,000 USD Promissory Note

[cyclone03]

My question involves collection proceedings in the State of: Iowa

I had a promissory note signed for $10,000USD at an interest rate that turned out to be over the legal rate. The person who wanted the money suggested that rate. Now I believe that he did that on purpose...

The principal has not been fully paid, and he is 30 days late. He has moved to Peru. The car that was put down as collateral turned out to be under his dads name.

Can I sue for the principal? What about the interest, is it lost? What about the collateral, can I cease his car? Since the car was not under his name when he signed the note (it was also notarized), can I file criminal charges if his dad claims that he never gave his son permission to put the car as collateral?

Please advice... I am a recent college graduate.. well you know how it is...

[seniorjudge]

Q: Can I sue for the principal?

A: Yes.


Q: What about the interest, is it lost?

A: Ask for it; it may or may not be allowed.


Q: What about the collateral, can I cease his car?

A: According to your post, he does not own a car.


Q: Since the car was not under his name when he signed the note (it was also notarized), can I file criminal charges if his dad claims that he never gave his son permission to put the car as collateral?

A: What kind of criminal charges and against whom?

[aaron]

I wouldn't sue over a usurious note without verifying the consequence with a local lawyer. At a minimum, there appears to be a statute imposing a 7% per annum penalty, Iowa Code Sec. 535.5.

You seem to be headed toward getting a default judgment, so one thing you can consider is making a claim for the money without mentioning the note, and perhaps also for interest at the maximum permissible rate. Let him bring up the note, if he defends against the claim.