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  1. #1
    Join Date
    Jul 2013
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    2

    Default How to Collect on a Promissory Note

    My question involves collection proceedings in the State of: Promissory note.

    14 months ago I loaned $4000 to a friend and I am unable to get a hold of her anymore. I have a signed promissory note that's dated, states the amount borrowed and the agreed upon amount that she would pay back in one years time ($5000.) In the note it states I am holding on to collateral of a wedding ring and car title (she never gave me the title though.) I believe the $1000 interest in one year on a $4000 loan is probably excessive for the state of Ohio and all I really want is my initial money back. Small claims court is for up to $3000 so I need to go bigger and probably get a lawyer, I just don't know the kind of lawyer I need or anything, I've never had legal issues.

    Thanks.

  2. #2
    Join Date
    Mar 2013
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    18,340

    Default Re: How Should I Proceed to Collect on a Promissory Note

    Quote Quoting OhioAL85
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    14 months ago I loaned $4000 to a friend
    How foolish.

    Did you think you were smarter than the bank that wouldn't lend her any money?

    Quote Quoting OhioAL85
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    I am unable to get a hold of her anymore.
    And you're surprised?

    Quote Quoting OhioAL85
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    I have a signed promissory note that's dated, states the amount borrowed and the agreed upon amount that she would pay back in one years time ($5000.) In the note it states I am holding on to collateral of a wedding ring and car title (she never gave me the title though.)
    Who's fault do you think that is? You should have gotten the title before handing over the money. By the way, just holding the title wouldn't have done anything for you unless you had your lien put on it at the DMV. Without that all she needed to do was get a duplicate title.

    Quote Quoting OhioAL85
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    I believe the $1000 interest in one year on a $4000 loan is probably excessive for the state of Ohio
    The Ohio limit is 8%.

    http://law.justia.com/codes/ohio/201...ection1343-01/

    There's an exception but that exception doesn't apply because you are holding personal property as collateral.

    Quote Quoting OhioAL85
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    all I really want is my initial money back. Small claims court is for up to $3000 so I need to go bigger and probably get a lawyer, I just don't know the kind of lawyer I need or anything, I've never had legal issues.
    This is contract law 101. Any lawyer who practices business or contract law can handle it. Be prepared to spend a few thousand on the lawyer without getting your lawyer fees back.

    I can't imagine why you don't just sell the wedding ring first and see how much you can recover from that. Or have you already found out how little you can get for it?

  3. #3
    Join Date
    Jul 2013
    Posts
    2

    Default Re: How Should I Proceed to Collect on a Promissory Note

    Thanks for calling me foolish, that's a great way to reply to someone who is asking for a little help. Like I don't regret all this already. Did I think I was smarter than a bank? No, but this was presented to me as an opportunity to help a friend in immediate need and gain a little in the long run. When I made the loan we were in good standing and she was due to receive a settlement from an ongoing legal issue. Am I surprised I cannot get a hold of her, yes, obviously. On your advice to sell the ring, the reason I haven't is because I worry she'll turn around and try to get it back. Ive never dealt with anything like this, it was very spur of the moment.

    Thank you for the contract lawyer advice.

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