Consumer Protection Law
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No written agreement when loan made. No note. When falling out occurred, creditor demanded repayment in writing and debtor responded in writing (email) that she would pay $50 per month. No response from creditor. 8 payments were made and accepted. Debtor missed two months of payments. Creditor then sued. Never any mention of interest prior to lawsuit. I have told debtor I will loan her (my sister) the principal amount owing ($3400) and she called the collection attorney the day following service of summons and offered to pay amount immediately. He informed that he would check with the Creditor to see if the matter could be settled without payment of interest owned and atty fees.
Court action was filed and she was served with summons and complaint yesterday and has 20 days to respond. Not sure is is small claims court since the complaint was filed and served by a collection attorney. Sister has not yet responded other than to verbally offer to pay the principal debt in full.