Thanks for following up and I am so sorry for the delay. Your question got locked up in the system and I am just now able to respond. I appreciate your patience and apologize for the inconvenience.
You have no risk of any criminal prosecution. It doesn't make any difference what happened subsequently; in order to prosecute you, you would have had an intent to not repay at the time you borrowed the money. And, that was not the case so you have no need to worry. And, he has the burden of proof
, not you; and you can easily show the changed circumstances after the borrowing.
You have the leverage here because of the Pennsylvania usury laws which are among the most restrictive in the country. In Pennsylvania, the legal interest rate on most consumer loans
in an amount below $50,000 is 6%. Thus, for personal loans below $50,000, the legally permissible interest rate cannot exceed 6%. If your loan is less than $50,000 and your interest rate is 12%, such a loan agreement will be deemed to be an illegal contract
. It will be considered unenforceable in its entirety in most instances. That gives you an absolute defense to performing under the terms and conditions of the loan. So, if your lender sues you, you will be relieved of any obligation to pay this loan.
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