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?

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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 9 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.


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