Protecting the Rights of Consumers
For Over 25 Years
Edelman Combs Latturner & Goodwin LLC
Question: Should I have a written agreement drawn up? I loaned a friend over 9,200 dollars over 3 months ago. I have received only one payment of 250.00 dollars. We have a verbal agreement to have the total debt repaid by next May.
A: Yes. Agreements which are not by their terms to be performed in one year must be in writing, signed by the party to be charged, or they are not enforceable. Also, note that under Illinois law loans made by persons who are not depository institutions (banks, S&Ls, credit unions) and do not have a financial institutions license for a non-business purpose to an individual cannot have an interest rate in excess of 9%, with various exceptions.