normal or extortion?
August 31st, 2006 by Questions
Extortion might be overstating the action but using the Oxford dictionary and not a law book, it fits.
In the creditors meeting when one of the lenders says that you either pay us this sum of money or we will proceed with fraud charges, is that extortion? The trustee agreed with the lender and the lenders offer to loan money with interest for the payment. It seems to me that this is a matter for the police. Is that correct? It is my understanding than no victim of an alleged criminal act can negotiate a cash settlement in exchange for not pressing charges.
The requirement that the loan agreement be signed within 2 days of the creditors meeting prevented the obtaining of legal counsel which would have clarified the language in the loan agreement. A clarification on this point was requested and the answer was \’sign it or we will proceed with fraud charges\’.
BTW and for what its worth, a fraud charge investigation would be a good thing as it would clear the air as to intentions and actions. It is to bad that having a person who is possibly not capable of understanding the loan agreement sign for a loan (with lots of insurance added!) is not illegal.