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  1. #1

    Default Excessive Interest Demand on a Personal Loan

    My question involves collection proceedings in the State of: Ohio

    A few months back a girl, who had been my friend for 30 years, offered to let me borrow some money (4500) I have excellent credit, and money in stocks,, ect ect, that I could have easily gotten the money, but she offered and at the time it did not seem like a big deal. She told me to start paying her back in Nov or Dec and not to worry about it, just pay her what I could. In September we got in a fight and she started sending me threatening texts. For example I was at a birthday party for a friend and she said "how dare you go to a bar when you owe me money, I know you are at (name of bar) and I am coming in there to kick your &^%.. She started telling people what a "loser" I was because I had to borrow from her. The texts and phone calls were relentless and insane.

    I had full intention of repaying her, they I stopped at a local tavern for dinner after work. I walked in, she was there. She came over to me and an attacked me, she dislocated and broke my finger. I had to take time off work for surgery. I had to hire people to mow my properties lawn (which I normally did myself) I was, and still am, in pain. She was questioned by the police, in her statement to the police she said "Yes I went up to her to inform her that she can't be going out to dinner when she owes me money"

    So now she has filed a small claims case against me for the money, claiming I agreed to pay her 10 percent interest, compounded monthly. (which is insane as I could have got a bank loan for a much lower interest rate than that) She is also claiming she lost her deposit on a condo because I did not pay her back in a timely manner, so she want 6000 dollars. I know I am not responsible for her lost of her deposit. But I feel the doctor bills and time missed from work because of her viciously attacking me make me not responsible for paying her back the money. Her intimidation and harassment went out of control when she physically attacked me. Not to mention that high interest rate I feel she is acting like an illegal loan shark.

    I have to go to court in Feb. and am wondering if anyone of the smart people on this board can give me advice on what to expect, and what I should say in my defense.

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Loan Shark

    If you want her to be responsible for your medical bills and lost wages, then you must counter sue her for your damages. You cannot simply walk into court and use those as a defense unless you have properly counter sued.

    However, I absolutely do not understand why you didn't either cash out some stocks or take out a loan to pay her back months ago...once the problems began.

  3. #3

    Default Re: Loan Shark

    I did have the money to pay her, but after she broke my finger, I didn't feel like I should pay her back, especially because the medical bills and missed work (I am an LPN) cost me way more than the 4500. I did not think it was legal to break someones finger to get money, especially when it was before the agreed upon time to make a payment.

    Thank you for the advice on counter suing. I went and got the paperwork from the court house this morning and will file that tomorrow!

  4. #4
    Join Date
    Nov 2015
    Location
    47.606 N 122.332 W in body, still at 90 S in my mind.
    Posts
    1,678

    Default Re: Loan Shark

    Well, as far as small claims court is Ohio goes, the upper limit is $6000, so that's what she's going for. You can, however, file a counterclaim for the costs for your finger up to $6000, to say nothing of the possibility of criminal charges. Now, unless you aren't including some pertinent details, it's a case of she said/she said.

    This is a textbook reason why you shouldn't borrow money from "personal friends". If you insist on doing so in the future you really need to get it in writing with both of you having copies so that you both know the terms to which you are both agreeing to abide by.

  5. #5
    Join Date
    Sep 2005
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    Default Re: Loan Shark

    Quote Quoting Sally Campbell Taylor
    View Post
    A few months back a girl, who had been my friend for 30 years, offered to let me borrow some money (4500)... I had full intention of repaying her
    But even with your having many sources of money and despite her many demands, you did not. Nonetheless, that's peripheral to the issues in your case.
    Quote Quoting Sally Campbell Taylor
    She was questioned by the police, in her statement to the police she said "Yes I went up to her to inform her that she can't be going out to dinner when she owes me money"
    But no charges? Why not?
    Quote Quoting Sally Campbell Taylor
    So now she has filed a small claims case against me for the money, claiming I agreed to pay her 10 percent interest, compounded monthly. (which is insane as I could have got a bank loan for a much lower interest rate than that) She is also claiming she lost her deposit on a condo because I did not pay her back in a timely manner, so she want 6000 dollars.
    Should we infer that there is no promissory note? When no interest rate is stipulated in a written loan agreement, a statutory rate of interest applies. O.R.C. Sec. 1343.03.

    You are correct, that you are not liable for her deposit. As others have suggested, your obligation to repay the note is separate from any injury claim you make. If you don't bring a counterclaim, your medical costs and other damages will not be credited against what you owe.

  6. #6

    Default Re: Loan Shark

    Any idea what the statutory rate of interest is? Charges are still pending on her, I am waiting to hear from the prosecutor. There was a note signed and notarized, but no interest was mentioned, it simply said I would pay her back 4500 by 2018.

  7. #7
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: Loan Shark

    Quote Quoting Sally Campbell Taylor
    View Post
    Any idea what the statutory rate of interest is?

    The section that defines the statutory rate refers to another section of the Ohio Code for the actual computation of that rate. That provision is one that determines what interest rate will be applied to underpaid taxes. The Ohio Tax Commission sets that each year, and it has a page which lists the rates for each year: http://www.tax.ohio.gov/ohio_individ...est_rates.aspx

    The rate for 2016 was 3%. For 2017 it goes up to 4%. So the rate is quite low.

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