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  1. #1
    Join Date
    Jul 2007
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    3

    Default How To Collect Money Owed On A Promissory Note

    Hi I am from state of Illinois and I have loaned a sum of $ 20,000 to a friend who has written a promisory note on a plain white paper stating that " the above sum is loaned for 6 months for an annual interest rate of 12 %. It has been over a year and so far after a great struggle he has payed back only half of the amount. now he is not returning my calls. I have recorded all our conversations made over the phone with out his knowledge. where do I legally stand now? would I be still be able to recover the money? Is it too much interest to collect according to illinois law?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: How To Collect Money Owed On A Promissory Note

    You can read Illinois interest rate laws here (815 ILCS 205 et seq). It appears that you did contract for an excessive rate, and there are potential consequences for that (See 815 ILCS 205/6). You can sue for the balance, but you need to be prepared for the possibility that he will raise a usury defense.

  3. #3
    Join Date
    Jul 2007
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    3

    Default Re: How To Collect Money Owed On A Promissory Note

    Thankyou very much for the information. though it is very difficult for a lay person like me to understand those judicial terms, it appears that the maximum interest I could collect according to Illinois law is 9%. Is that right? if so how do I get out of this problem? I dont want any interest. all I need is my principal amount. If there is a way please let me know?

  4. #4
    Join Date
    Sep 2005
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    Default Re: How To Collect Money Owed On A Promissory Note

    If you "misplace" the promissory note such that interest rate information is not submitted to the court, do you think the defendant will deny owing the underlying debt?

  5. #5
    Join Date
    Jul 2007
    Posts
    3

    Default Re: How To Collect Money Owed On A Promissory Note

    No the defendent might not. even if he does I have the recorded telephone conversations which would make an evidence that he borrowed money from me. again is it legal to use those telephone conversations as my evidence?

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: How To Collect Money Owed On A Promissory Note

    I believe Illinois is an "all party consent" state, meaning you're not supposed to record conversations without the consent of all participants.

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: How To Collect Money Owed On A Promissory Note

    I live in Il. & Aaron is correct. Generally, two-party consent is required.

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