force Posted January 1, 2017 Share Posted January 1, 2017 So my good female friend needed a loan last year and wanted me to ask my guy friend (who loans money) if she could get a loan of $800.00 from him. He said yes and loaned her the money and he even got collateral from her which was a diamond ring and bracelet, then had her sign a promissory note saying if she doesn't pay the interest within that month he can sell the collateral. I later asked him if I could just take over the loan since I had the money and he said I could if I wanted. So I did. I never told her I took over the loan because I decided it would be better to keep money and friendship separate so she still thinks she has the loan from my friend so believes I just collect from her to give to him. So I have been collecting the interest from her every month plus whatever she can pay in principal then I have her sign a paper saying she paid this amount on this date and the remaining balance. So I haven't received any payment for Dec. so I messaged her that it was time for her payment and she tries to say she already paid for Dec. So we go back and forth and she reluctantly says she'll give it to me this week. She tried to say she gave me the money the middle of Dec. and I didn't have her sign the receipt and I said I always have you sign a receipt. She tried to say that I said don't worry about the receipt. I ALWAYS have her sign the receipt. WTH?? Does she really think she paid me?? I have all the receipts and even have all the money she paid in a drawer. I have NOTHING for Dec. The bad thing about all this is she's only paid $100 in principal since last July and the rest has been to just cover the interest for the month. I stood my ground and said I don't have it. Now I feel like she's pissed off at me. She paid the last Payment at the end of Nov. so I think she's getting confused with Nov./Dec. I hate to see this affect our friendship. Am I handling this right? Any suggestions? Advice? I'm really irritated Link to comment
Seraphim Posted January 1, 2017 Share Posted January 1, 2017 Is your buddy a loan shark? Link to comment
mustlovedogs Posted January 1, 2017 Share Posted January 1, 2017 IMO, you shouldn't charge interest to a friend. Or at least not a lot. If her payments are just covering interest and not principal, you're overcharging. You should ask her nicely to double check to be sure if she actually did pay. But if she's adamant that she did, it may be worth to take it as a loss (what's the monthly anyway?) if her friendship is worth more than that monthly payment. Link to comment
Hollyj Posted January 1, 2017 Share Posted January 1, 2017 I'm curious as to why you didn't tell her? What is the interest rate? Link to comment
Seraphim Posted January 1, 2017 Share Posted January 1, 2017 If the interest is so high she can't even pay the loan that's Usury . If you can't afford to let the money go when you loan it to a friend never loan it . Link to comment
Fudgie Posted January 1, 2017 Share Posted January 1, 2017 I don't loan money to friends, personally. Why did you get involved with these two and their money disputes? You must love drama. Link to comment
Seraphim Posted January 1, 2017 Share Posted January 1, 2017 Usury (/ˈjuːʒəri/) is, as defined today, the practice of making unethical or immoral monetary loans that unfairly enrich the lender. Originally, usury meant interest of any kind. A loan may be considered usurious because of excessive or abusive interest rates or other factors. Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 I've loaned money to friends before. I'm extremely, extremely selective about it and don't lend unless I'd be happy enough with the reason that I wouldn't be resentful if they ended up not being able to pay back, or if it was very delayed. How much has she paid in total, including the interest? IMO, it's shallow... real shallow to loan to a friend with interest, especially on such a low amount. $800 isn't bogging down your investment opportunities. I suppose be as rigid as you want, but I don't think at this point there's any half-way between friend and lender. You're either one or the other, and it won't change even after she pays you back. Link to comment
force Posted January 1, 2017 Author Share Posted January 1, 2017 He is not a loan shark but he does provide loans to me and his friends at 5% and MY friends or people I recommend at 10%. He doesn't loan out money often. He just conducts loans professional manner that's why he will do collateral. Link to comment
force Posted January 1, 2017 Author Share Posted January 1, 2017 I hate to rollover on this loan. Sure she's a friend but if you give someone an inch they take a mile. She knew the terms before she got the loan and agreed to them. This loan was done in a more professional manner. I have a loan out with the same guy friend who loaned her the money and I pay him strictly at the beginning of the month no matter what. He charges me 5%. Link to comment
RainyCoast Posted January 1, 2017 Share Posted January 1, 2017 I never told her I took over the loan because I decided it would be better to keep money and friendship separate no, you didn't tell her because you wanted her to remain oblivious to the fact you were making profit off her. if you wanted to keep money and friendships separate, you would have let her conduct the business with the guy without you as the secret benefiting intermediary. and you're complaining she skipped a payment why? because it's dishonest? Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 and you're complaining she skipped a payment why? because it's dishonest?Love it. Perfect delivery. Link to comment
Hollyj Posted January 1, 2017 Share Posted January 1, 2017 no, you didn't tell her because you wanted her to remain oblivious to the fact you were making profit off her. if you wanted to keep money and friendships separate, you would have let her conduct the business with the guy without you as the secret benefiting intermediary. and you're complaining she skipped a payment why? because it's dishonest? I think it is pretty shady. Now, I know why you didn't want her to know, as you are making 10% off the loan. Link to comment
force Posted January 1, 2017 Author Share Posted January 1, 2017 The interest rate is 10%. She knew the terms before she got the loan. I didn't tell her I took over the loan to try and keep the friendship aspect out of it. If she doesn't pay I don't want her to think I'm the one taking her ring and bracelet. Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 So if I'm interpreting it right, since she's a referral, she's being charged 10%? If we're talking an APR, you're collecting like $4 in interest per month. Or did you for real refer your friend to get a loan with a guy who makes her pay 10% interest every week or month? Link to comment
RainyCoast Posted January 1, 2017 Share Posted January 1, 2017 she knew the 10% went to you? because the original post says she thought you were just the postman. the interest rate is defined in the contract she signed with him. or do you have your name on the contract. Link to comment
HeartGoesOn Posted January 1, 2017 Share Posted January 1, 2017 Ill gotten gain has a tendency to backfire. JMO... Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 Ill gotten gain has a tendency to backfire. JMO...Sounds like it's all gain for her, actually. I can't imagine a friendship having any value to someone if they could look at their friend in debt only to ask themselves how they can make a penny off it. I'm seriously about to laugh the hardest I have in awhile if she's collecting on a 10% periodic interest rate and calling herself a friend. It's obvious she's not contemplating her friendship over a $4 missed interest payment. Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 Also asking again how much she's paid total, including the interest. Link to comment
Ms Darcy Posted January 1, 2017 Share Posted January 1, 2017 no, you didn't tell her because you wanted her to remain oblivious to the fact you were making profit off her. if you wanted to keep money and friendships separate, you would have let her conduct the business with the guy without you as the secret benefiting intermediary. and you're complaining she skipped a payment why? because it's dishonest? I agree. This is a real mess. I think that in the future, you shouldn't take over a friend's loan. Link to comment
rosephase Posted January 1, 2017 Share Posted January 1, 2017 Sounds like it's all gain for her, actually. I can't imagine a friendship having any value to someone if they could look at their friend in debt only to ask themselves how they can make a penny off it. I'm seriously about to laugh the hardest I have in awhile if she's collecting on a 10% periodic interest rate and calling herself a friend. It's obvious she's not contemplating her friendship over a $4 missed interest payment. I might be doing my math wrong butI believe her payment each month is $80. Not $4. Which just makes what the OP is doing grosser. Link to comment
mustlovedogs Posted January 1, 2017 Share Posted January 1, 2017 I might be doing my math wrong butI believe her payment each month is $80. Not $4. Which just makes what the OP is doing grosser. I assume it's not 10% per month but rather per annum, so it would be 10%/12 per month. Link to comment
j.man Posted January 1, 2017 Share Posted January 1, 2017 I might be doing my math wrong butI believe her payment each month is $80. Not $4. Which just makes what the OP is doing grosser.Yeah, badly worded it but that was the point I was trying to make, that it's definitely not the ~$4 periodic interest it would be if it were a 10% annual rate. In complete agreement, though. Link to comment
Hollyj Posted January 1, 2017 Share Posted January 1, 2017 I guess the OP does not appreciate the advice. Link to comment
agent1607307371 Posted January 1, 2017 Share Posted January 1, 2017 The thing is, you didn't loan your friend money. You bought her loan off someone else and didn't tell her, which is a really creepy way to behave towards a friend. I don't think you should be using friend in this post - you obviously just want to use her to make some money off. Link to comment
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