Hello All, I was wondering if somebody could enlighten me about what to do about this situation. I have borrowed $600 from a neighbor of mine in 1998( for a plane ticket -- he paid for it with his credit card), and in 2000 partially repaid him 2 installments of $70 each. Basically this leaves me with $460 -- or so I thought. After I moved away, my neighbor couldn't locate me except through email and i have kept replying to his emails giving him some excuse or the other. Now when i want to pay him back, he claims the amount is $1300 after adding interest payments which his credit card has changed him, plus late payments on the credit card he claims he had to pay since i didn't repay him in time. What are my options?? Can he sue me to recover the money?? Is the statute of limitations still in effect -- Its been over 4 and a half years and the SOL for all types of debts in both the relevant states are 4 years -- but I am unsure as to the classification of this debt. I am certainly willing to pay him but a reasonable amount only -- not triple the 460 I thought i owed him. There are no written records for this debt, except of course he paid for my ticket, and all the emails we have exchanged. Please advise me regarding my options
It would be considered a written or oral contract. The applicable SOL would apply in your situation. My suggestion would be if you would like to settle this debt, give your ex-neighbor the principal owed plus a reasonable interest rate of 10% per annum.
"A friend in need is a friend indeed" !! He tried to help you when you are in need of it. He did not solicit you with preapproved loans like those cc or anything like that with any financial gain from you. Please try to return all the money he is demanding without smearing dirty stuff like SOL, LAW SUIT to the word "friendship". I guess the judge will award punitive damages along with late fees, court fees and interest which can exceed 2000. You can also negotiate whatever you can with a valid reason. just my 2 cents worth....
He did you a huge favor and you want to penalize him? Pay him the amount plus credit card interest (ask him to show you the interest rate). You should not be responsible for his late payment fees. Your former neighbor is an actual person--not some mega collection agency machine or multi-billion dollar credit card issuer. Save the legalistic vitriol for the real bad guys.
I normally don't preach, but the others are right. He didn't ask you for FICO scores, or anything. He did the neighborly thing. I'm just guessing but it sounds like you had an emergency that you needed to fly somewhere. This person graciously put it on his cc. The interest does add up. I would pay him back no questions asked AND apologize for not taking care of it sooner.
Agreed. Fork over the dough, apologize profusely, and throw in a fruit basket and a gift certificate to Bennigan's while you're at it. Good karma is important. Apropos of the advice given here, how long do all think it'll take some idiot CA troll to chime in with "AHA! GOTCHA, YOU CREDITNET DEADBEATS! SO, YOU PAY SOMEBODY YOU KNOW, BUT YOU STIFF US, IZZAT RIGHT?" ...at which point we will all be expected to cower in a simian frenzy at the blinding light of this irrefutable logic. Just a heads up wajaba
If that guy had lured you with 0% for 2 months and hit you with 24% later, then he took some risk and he may get what ever he can or may be zero at the end. Risk verses reward !!
Re: Re: Borrowed money from ex-neighbour Very true... I guess another moral to this thread is: whenever it comes to neighbors, friends, family, coworkers, whatever, "Neither a borrower nor a lender be." Stuff can get too messy, if ya ask me... wajaba
YOU OWE THE MONEY...PAY IT!!!! But you are NOT responsible for late payments on somebody else's credit card (unless you agreed to make the monthly payments on the credit card, EVERY SINGLE MONTH to pay off the credit card!!! They MUST prevent the late fee by paying the bill...even if you can't!!!! I "THINK" IT IS CALLED "MITIGATING DAMAGES" EXAMPLE...your basement is flooding due to the main line being broken...YOU MUST TRY TO TURN OFF THE WATER IF YOU CAN EVEN IF YOU HAVE TO SWIM...AND CALL THE PLUMBER (AND/OR THE WATER COMPANY) EVEN IF YOU HAVE NO MONEY AT THE TIME!!!
I'd pay him what he asks. You haven't paid any interest. Maybe he could have kept up payments, but that's not the issue. He helped you out, now repay the debt with interest. If I had borrowed $400 when I was at the bottom, I would gladly give that person several thousand dollars now, just for helping pull me up. And if you really had the money, you should have paid it right away.
I have not much to add to the comments already expressed, (nothing that wouldn't be censored anyway). However, since you DID ask about SOL, while it is true that it was an oral contract, the fact that you acknowledged it in writing (e-mails count) and made payments on it, put it into a different catagory. You would LOSE big time if he decided to file suit, you would pay everything he demanded, plus his court costs, plus damages (if he had "late" payments on his credit report because of your welching on an agreement to make the cc payments). I hope HE reads this board and sues the %&$## out of you.
Holy cow, I guess there are strong opinions around here. First of all, I think my contrition didn't come across clearly enough. I feel bad for not returning his money yet but here are some clarifications: Till a few months ago, I literally had difficulty rustling money for my next meal. Many a time I slept in my car since I didn't have any money. I still remember a harrowing summer in Washington when I had to drive 2000 miles (to and fro) just to get to a interview. That is the only reason I couldn't repay him -- sheer inability. For the past 4-5 years, I haven't paid a single bill -- Now that my financial situation is vastly better I am rapidly repaying several thousand dollars of old loans. The neighbor was among the first I contacted for his address so that I could mail him a check -- thats when he shocked me by quoting the amount. He wants $1345 for a loan which even at 15% would amount to 900 bucks. For all the people on the boards calling me a lowlife and a loser without fully comprehending the situation fully -- I WANT TO MAKE IT CLEAR THAT I WANT TO PAY HIM BACK...FULLY. Its's just that after I expressed shock at the amount he immediately threatened to sue, now that he had my address. I was just checking my options, thats all -- IN CASE HE SUED ME. I have a email from him dated Feb 1999 in which he quotes that I can have a few more months since he has no need of money and has a zero balance on all his credit cards. All the talk about late payments is therefore not true or happened much later. That is why I wanted him to come down a little bit and charge me something like 12-15%. While I am much more comfortable than before, I have been paying down large amounts of money towards settlements and money is still tight. For all those comments about avarice, my rent is still $300 in one of the most expensive cities in the country -- you can imagine the shithole I am living in. I used the borrowed money to buy a plane ticket for a family emergency and not for some avaricious pastime. That said, I sent him an email today asking him to quote his final offer -- I will pay him a sum of $900 now, and the rest in 3 months time. To all the people who made all those hurtful remarks, please ask for some clarifications before dishing insults. This is a board for people who are recovering from financial setbacks, and comments like those can be really depressing. For everyone who had helpful suggestions -- Thank you.
My meaning was never to insult, hurt, or demean. I know many of the longterm CNetters have been in similar circumstances to you and often, your neighbor. Sending him some cash and an explanation of your circumstances. Let him know that you are not a deadbeat and that you will pay him back. I like the idea of throwing in a little something extra--a small gift certificate, as a "thank you." Your neighbor has likely said some threatening things in his correspondence/demands for his money. Forgive and forget. Despite any anymosity you have, this person loaned you money when you needed it. Pay him back and "kill him with kindness." You'll be a much bigger person for it. Now, if he actually starts pulling hard inquiries and verifies with the CRA--kisk his @ss!!! Just kidding
See that is what happens when everyone jumps to a conclusion. I think everyone had a point except for broncsboi who was looking in the mirror when they stated that remark.
See that is what happens when everyone jumps to conclusions. picantel =================== Must be why the cow jumped over the moon there was a conclusion up there. THE END ** *** ** LB 59 """""""""`````````````"""""""""
I think your neighbor's demand for $900 interest and late charges he had to pay to his cc company on a $460 debt would probably violate the usury laws of any state. While cc companies are exempt from these laws, individuals aren't. For example, in CA the maximum rate that can be charged by someone not in the business of loaning money is 10%. Using this percentage, your neighbor could charge about $135 for three years of simple interest on the $460 principal. He can't pass along his card interest and late fees to you. I would offer your neighbor whatever the legal rate allows in the state where you borrowed the money.
But you are NOT responsible for late payments on somebody else's credit card (unless you agreed to make the monthly payments on the credit card, EVERY SINGLE MONTH to pay off the credit card!!! They MUST prevent the late fee by paying the bill...even if you can't!!!! I "THINK" IT IS CALLED "MITIGATING DAMAGES" EXAMPLE...your basement is flooding due to the main line being broken...YOU MUST TRY TO TURN OFF THE WATER IF YOU CAN EVEN IF YOU HAVE TO SWIM...AND CALL THE PLUMBER (AND/OR THE WATER COMPANY) EVEN IF YOU HAVE NO MONEY AT THE TIME!!! I'M SURE THERE WAS NO CONTRACT THAT YOU WILL PAY LATE PAYMENTS FOR THE OTHER PARTY!!!
