Common Questions on Lending Money.
the information below is not to be treated as legal advice.
Is it Legal to Lend Money to My Friend?
The occasional giving of loans to family and friends is legal and do not require a license. However if you have created a system to constantly lend money freely and readily to your family members and friends, then you are conducting a money lending business. In this case you maybe acting as a unlicensed money lender. This is not allowed and is illegal.
Is it Legal to Charge Interest for Personal Loan?
If you are not in the business of money lending, you can
(a) lend money to a friend or family member and
(b) charge interest on that loan.
The interest however has to be a reasonable to avoid legal complications (where you may be mistaken for a loan shark).
Is it Legal to use IOU?
Yes, it is legal. It also makes your case stronger if you have an IOU. IOU simply means I owe You. It is generally a simple contract between the lender and borrower stating the loan amount, contact details of each other, expected payment date and both parties signature.
Do you have a sample IOU agreement?
Please feel free to use this sample IOU
I lend some cash to my friend but he did not sign any documents. How to get back my money?
You may want to contact a debt collection company or a debt collector. They will help you build a case and contact the debtor.
Why Use Alan & Steiner Debt Collection
With over 25 years in debt collections, our debt collection methods are professional, non-aggressive, efficient and objective for all parties. Today, Alan & Steiner enjoys a 99% success rate. We will be happy to use our expertise and assist you in recovering your debt.