Man Refuses to Repay $120,000 Unsecured Personal Loan
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UPDATED: Aug 10, 2012
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Robert Wessel from St. Clair County, Illinois is being sued for allegedly refusing to repay $120,000 in personal loans he received from another individual.
His lender, Keith A. Markus, claims that Wessel borrowed three unsecured personal loans from him over the course of five years.
The first was lent out in September 2007 for an amount of $25,000. Markus said that Wessel agreed to repay that principal in addition to 6 percent interest by December of that same year. But two months later, Wessel approached Markus for even more money, and Markus obliged.
The second loan, which was originated in November 2007, was for more than $75,000 with an interest rate of 10 percent. That money was supposed to be repaid by February 2008.
Finally, in January 2010, Markus lent another $20,000 at 10 percent interest, scheduled to be repaid in May 2010.
Despite agreeing to lend three unsecured personal loans to the same borrower, Markus contends that Wessel has yet to make a single payment on any of the three arrangements.
Unlike secured forms of lending, which are usually backed by auto titles, paychecks, or personal guarantees, unsecured personal loans are originated with no collateral. As a result, they tend to put lenders at much greater risk since lenders have no means of regaining lost money in the event of a default. Because of this risk, unsecured lending comes with higher interest rates, which may justify the double-digit rates Markus charged Wessel.
Even though the total money lent was around $120,000, Markus is seeking a total of $179,000, plus all court costs.