If a friend loaned me $25,000 of which I paid $12,000 back but now she wants 4% interest on the loan for the last 10 years, do I have to pay this?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a friend loaned me $25,000 of which I paid $12,000 back but now she wants 4% interest on the loan for the last 10 years, do I have to pay this?
The amount she is asking for is over $18,000.
Asked on April 13, 2012 under Bankruptcy Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
A loan is essentially a contract--the lender may only ask for, and the borrower only has to repay, whatever the agreement had called for at the time it was made. If there was no interest at the time the loan was made, the lender may not after-the-fact require it--she only get such interest (if any) that you agreed to when borrowing the money.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.