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View Full Version : Can I collect interest on a loan that is in default?


RNTracy
Sep 28, 2007, 12:00 PM
My daughter's best friend (past tense) mom borrowed $700.00 from me with a verbal agreement to pay me every two weeks until the loan was paid off. She started paying as agreed one payment and then I had to call her for other payments. I collected in total $300.00 from her. She stopped answering my calls and once when I saw her while driving, she turned into a parking lot to avoid me. I was so furious, I was going to confront her but my son said just take her to court. I filed a complaint and served her with a notice. She evidently received the letter because she sent a sob story letter and enclosed was a money order for $25.00 and a payment agreement for the balance. Well, I missed the court date because the court sent me a small thin post card which was later found at the bottom of my mailbox. The judge dismissed the case and I had to file a motion to vacate dismissal. Well, I did that and the judge granted to vacate the dismissal.
After receiving that letter, I called the courts to find out my court date. At the time they couldn't tell me. I watched the mail every day waiting for my court date. Well, yesterday I called the court to see what was going on they told me I was suppose to appear last week and my case was dismissed. I was furious because I know 100% for sure I did not receive a notice. Now I have to refile spending more money on certified mailing and stamps. Oh by the way she has not paid me a dime since. But now I have written proof. Can I sue her for the cost of my postage and also for interest. This has been way over a year.

RubyPitbull
Sep 28, 2007, 12:07 PM
Sure, you can include all the costs you have laid out in trying to recover your money. Make sure you have all the receipts to back up the full amount you are claiming when you appear in court. The judge will make the decision as to what you are entitled to as part of his judgement.

this8384
Sep 28, 2007, 03:42 PM
What state are you from? Here in Wisconsin, you don't get a postcard in the mail. You have to file paperwork, which you get a copy of, and they put the date of the hearing right on it for you. You then have to have a copy of that paperwork served to the defendant by an officer of the law; you cannot serve the person by certified letter. But like I said, that's in Wisconsin.

I thought the court system here was bad but I can't believe they weren't even able to tell you when the hearing was going to be. Most courts have that in a computer system and can find it by searching for your name.

As for the interest, you're going to have a hard time tacking that on. If you had nothing in writing stating that there would be interest, I honestly don't think a judge will award it to you. You can't make up new rules just because you don't like the way the game is being played.

ScottGem
Sep 28, 2007, 04:51 PM
Do you have a locked mailbox? Is it possible that the notice was stolen?

And no, unless your original loan agreement included interest you can't start adding it on, but you can add on the cost of collecting.

However, you need to understand something here. You can go through the hearing and probably win your case, but then you have to collect. All winning your case does is give you the right to garnish her salary or attach her bank accounts. It doesn't mean the judge is going to tell her to write out a check right then.

s_cianci
Sep 30, 2007, 11:20 AM
Probably not. From the court's standpoint, you failed to appear twice. That being the case, any resulting additional costs are going to be on you.