I live in Seattle, Wa, and I gave a loan of $5,000 to my cousin to whom I had given previous loans before that were paid off, albeit, somewhat later than was promised. So far he has paid off $3,100, but now he seems to have reneged on the remaining $1,900. He refuses to answer any of my calls, and I have even tried someone else’s phone but it just goes to vm.
I had a promissory note and the title to his truck, but he seems to have conned me out of that by saying he had the truck sold and it was the only way he could come up with some quick cash. Nothing happened and that’s when he stopped answering his phone.
On a side note, when I gave him the truck title I inadvertently gave him the promissory note, which was in the same manila envelope. I was in the hospital at the time on some powerful narcotics and was not thinking clearly. The only thing I have is that I told a couple of people about the loan when I gave it and now all the troubles I’m having.
What are some options I have, if any, short of physically confronting him, which would only exacerbate the situation?
The pro note and the truck title were security for the loan, not the loan itself. You can sue for repayment of the loan. If your cousin denies that the loan was ever made, you can (hopefully) evidence it through the paper trail showing a payment of $5,000 to him, and a series of payment totally $3,100 from him back to you. Plus, possibly, e-mails or other correspnondence between him and you referring to the loan.
You don’t make a photocopy of the pro note by any chance, did you?
You need to talk to a lawyer. It sounds like you have a good chance of being able to sue for the money, given that you actually had him sign a promissory note and give you title over his truck. The selling of his truck when you had title to it alone sounds like something he’s very much not allowed to do. The best case scenario is that the threat of legal action jolts him and he pays up without you ever having to take it further. But we don’t know all the details of your situation and we’re not experts on your local law, so advice on this board is all going to be guesswork. Speak to a lawyer.
It sounds like a case for Judge Judy! Or maybe small claims court. I would have to think that his paying back part of the loan indicates that he knows very well that he owes you the money, that it wasn’t just a gift.
Didn’t you record your lien on the title? Just having possession of the title means nothing. He could go to DMV and apply for a lost title and the one you were holding would be void. If you record the lien, a new owner can’t register it without a lien release, which you wouldn’t do without payment.
If you had not recorded the lien, I wouldn’t have released the title without full payment. You could have met with him and the buyer of the truck to transfer the title over.