Hi and thanks for asking your question. My name is XXXXX XXXXX X will be assisting you this morning. Your relative can't simply add new terms to the agreement between the two of you. Since this was an oral agreement, a court would want to determine the specifics of the loan agreement in the event this issue was ever litigated. Prior course of action is usually a good indicator of the agreement in place. For example, if you agreed to pay back a certain amount and there was never a discussion of interest, you could argue that you've been paying it back, he has been accepting your payments and there was never a discussion or agreement to pay back the loan with interest.
I don't agree that he can charge you interest now without your prior agreement to this new term. If he sued you for repayment and won a judgment, the law allows him to collect interest on the judgment. However, at this point, he can't add interest as a new term to your previous agreement.
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