QUESTION
What is my legal recourse in this matter where i am the lender against a borrower and payment has not been made at all for any amount?
Asked on Dec 02nd, 2020 on Breach of Contract - New York
More details to this question:
Someone asked to borrow $10,000 from me via wire transfer with a notarized and signed contract in January of 2020, payable in full in 6 months (June of 2020) at 50% interest / $15,000. The Borrower reached out in June asking for an extension (verbally) which was granted (COVID). In August & in September I reached out for a status and/or partial payment but borrower was unable but promised that he would pay in full at the end of November 2020. I reached out yesterday & have not received a response. What can I do? Can you assist?
1 ANSWER
You can sue for breach of contract, but you will have a problem because your loan was greatly usurious. The maximum legal rate of interest you can charge an individual in New York is 16% annually. You were charging 100% annually, which is considered loan sharking.
Answered on Dec 02nd, 2020 at 7:10 AM