My car was towed and my neighbor was trying to help me get a loan from her friend. The terms of the loan we're not acceptable to me so there was never an agreement. The following day she took me to the DMV and when they asked if I could pay she just paid it. She said she wasn't doing it for free and I said I would pay her back as soon as possible. The next day she said let's go get your license and paid for that also on her own accord. I started looking into getting a loan from someone other than her friend and when I went to get back my paperwork (car title, registration, license, etc) she made me sign a promissory note before she would give me back my paperwork. The note said one week to pay with 18% interest. It also has no mention of the actual issuance date of the funds. Is this valid, how can I void the note because I feel like I was forced into a loan I never asked for.
She cannot charge you 18% a week interest or force you to sign a promissory note. It goes without saying however that you should promptly pay this person back because they definitely went out on a limb for you.
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The interest rate is totally, legally improper and unenforceable. Your story doesn't make complete sense, like how you would drive if your "friend" is holding your license and registration as collateral, Those documents have no value to her but destroy the whole point of borrowing the money.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts...
The word Mr. Areshenko and Mr. Dolan are looking for is "usurious." The maximum allowable interest is 10% per annum. 18% per week is absurd.
Definitely don't sign anything--especially because she is depriving you of an opportunity to seek aid available to low income individuals by paying on your behalf.
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