Posted by John Merchant, Esq. on September 17, 2002 at 11:14:22:
In Reply to: Can I consolidate two loans without a broker? Usury? posted by Robert Elbinger on August 10, 2002 at 21:21:51:
In my opinion, there would be no usury claim possible here, because you're not creating any new loan, but simply doing a consolidation of two old ones; however, since this is something the borrower WANTS, I suggest it would be a prudent move to have him sign a waiver statement for you, to be witnessed, even notarized, to the effect that he's requested you do this, and even if it results in a higher yield or return to you, he's absolutely waiving any claim of usury as it's to his benefit and done at his request.
Tha should take it out of usury claim range. Of course, being CA, any whacko can sue for anything at any time, so there's certainly no guarantee that somebody might not talk him into suing you for something, sometime...but his having signed a witnessed and notarized waiver statement like suggested would probably cause him too much embarassment to go into court on it. The judge would eat him alive, after your lawyer got done with him, and I can't see anybody sane happily being willing to be the victim of that.