Check out some similar questions!

AprlShwrs · Apr 19, 2007, 07:10 AM

Okay this is the situation. I singed a promissary (sp) note on or around July 7th 2000, the loan was for $1,700. The promissary note did not state anything regarding interest. On October 24, 2000 she again loaned me $600 and on August 27th 2001 she sent me a check for $375.00 ( this was a gift, not a loan) , the last loan for $600 did not have any promisary note signed nor whas there any agreement on when the money would be paid back. The loan was personal in nature made to me from my mother. Due to circumstances beyond my control I was unable to re-pay. When the promisary note was signed I lived in Indiana and she lived in Iowa.

Just yesterday I received a letter in the mail from a attorney she hired to collect the debt. The letter is stateing that I owe her $2,675.00. This amount is for all three amounts stated above plus 5% interest.

My question is... Is the statute of limitations up on this note ? And since there was no agreement on interest being paid back does the attorney have a right to collect interest ? How do I go about disputing the amount the attorney is claiming I owe if the statute is not up ?

Any and all responses are appreciated.

excon · Apr 19, 2007, 08:09 AM

Originally Posted by AprlShwrs

Any and all responses are appreciated.

Hello Aprl:

Are you sure about that? We'll soon see.

In the first place this is your mother. She put food in your mouth and didn't want you to pay it back. Next, you're splitting hairs trying to justify not paying. Third, there is no statute of limitations on a debt. There IS a limited time a party has to file a lawsuit against someone. That is often times referred to as a statute of limitations. However, she can hassel you about it forever, and I hope she does. Frankly, hiring an attorney was a brilliant thing to do.

Interest?? Why do you think you're the only one who can change the terms of the agreement?

PAY YOUR MOTHER! Quit being a jerk.

excon

AprlShwrs · Apr 19, 2007, 08:15 AM

First of all, she isn't the one who raised me or put food in my mouth. And I didn't change the terms of the agreement. I am only asking this question for advice not your opinion about my morals .

ScottGem · Apr 19, 2007, 08:34 AM

First let me say that you opened the door here with the comment about any and all responses. But even if you hadn't, that's not how things work here. You can't pick and chose what advice you will get, only what advice you will follow.

excon gave you some very good advice. He also partially answered your question about statute of limitations. Generally the SOL goes from the last activity. So even if the note was signed in 2000, the time that matters most is when you last paid. Also, depending on the wording of the note, the additional funds could have been included in the note and extended it.

But the issue is, as excon put it, not what the note holder can do to collect on the note, but your obligation under the terms of the note. What you should be doing is contacting your mother or the attorney and offering a settlement.

Oh, and on the interest. Even if none was specified, a reasonable rate can be applied to a loan.

mr.yet · Apr 19, 2007, 08:59 AM

Did You Borrow The Money? Yes!

You Need To Pay It Back, The Sol Only Means They Cannot Take You To Court, You Owe The Debt Pay It.

Why Would You Cheat Your Parents?

AprlShwrs · Apr 19, 2007, 09:04 AM

I agree , I totally agree. I do have intentions on paying her. Between 2000 and now, I have had many life changes that have prevented me from paying. It's certinly not that I didn't want to repay, it's honestly because I was unable to. My ONLY concern is the interest and her takeing me to court. I was basically asking about the SOL as far as being conerned about court.

ScottGem · Apr 19, 2007, 09:16 AM

As I indicated we can't answer the SOL question without knowing when the last activity was. Generally, promissory notes usually carry a 6 year SOL, so you may be on the border here.

Lowtax4eva · Apr 19, 2007, 09:21 AM

I would add that a lawyer would know the exact SOL in his area and if he/she took the case then I'm sure they have the legal right to sue.

And as said, it's your mom, pay her back. Im sure if you called her (if you on okay terms) and send a few hundred she would forget all this. But then actually pay her back the rest and sign something new saying you will.

AprlShwrs · Apr 19, 2007, 09:42 AM

No doubt she is owed the 1700!! Regardless of her being my mother she is due that money. However the second amounts stated in the collection letter for 600 and 375 were NOT loans and there was no mention of repayment, I was going through a divorce and she gave me that money as a gift, now the lawyer is trying to collect on thoes amounts as well as the original amount as stated above.

ScottGem · Apr 19, 2007, 11:22 AM

Maybe, had you repaid the 1700, she wouldn't have tacked everything on. Or maybe the atty is throwing it all together as bargaining point to get you to settle for the $1700.

AprlShwrs · Apr 19, 2007, 11:46 AM

Originally Posted by ScottGem

Maybe, had you repaid the 1700, she wouldn't have tacked everything on. Or maybe the atty is throwing it all together as bargaining point to get you to settle for the $1700.

Good point, I didn't think about that, I just sent out a Notice Of Dispute to this collection lawyer stateing that the 975 was not agreed to on the PN, with a cc to her. We are not on speaking terms as she has a mental illness and refuses to talk on the phone to me. Her only form of communication to me and her grandchildren for the last 10 years has been via e-mail. Like I've stated all day, I don't disagree with the 1700 that is owed her, just the 975. Although she is biologically my mother, she's no "Mom" or "Grandma" . But it's not her fault.

froggy7 · Apr 19, 2007, 09:37 PM

Originally Posted by AprlShwrs

Good point, I didn't think about that, I just sent out a Notice Of Dispute to this collection lawyer stateing that the 975 was not agreed to on the PN, with a cc to her. We are not on speaking terms as she has a mental illness and refuses to talk on the phone to me. Her only form of communication to me and her grandchildren for the last 10 years has been via e-mail. Like I've stated all day, I don't disagree with the 1700 that is owed her, just the 975. Although she is biologically my mother, she's no "Mom" or "Grandma" . But it's not her fault.

Actually, in your original post, you stated that the second 600 was a loan, and only the last was a gift. So you should owe her at least 2300.