Wrong to charge interest on family member who borrowed large sum of money?

[Dinosaurhearmeroar]

Not my story but someone else’s - two close family members involved. One had lent a large sum of money (five figure sum is all I know) to help them out financially due to a horribly expensive divorce.

there has been a fall out due to lending party asking for interest on loan as the loan will take a long time to pay back and lender is considering their financial situation and future inflation etc.

both parties single so no other people to rely on really financially. Lot of tension now.

being unreasonable - the lender, it’s family.

not being unreasonable - borrower, family member is doing a big favour here and is being very careful with the coffers.

I know my thoughts but love to hear others!

Was the money lent with no agreement about interest and repayment time scale? Very remiss of both parties. Perhaps a family member could act as mediator to help them reach an agreement now.

As PP said, interest should have been agreed in advance. But if the repayment is a long timing coming, then in order to keep the peace the borrowing family member should cough up on the interest (provided it is not an unreasonable amount in itself).

lol let me help you out, but make your life harder later on??? You’re not a F…ING loan shark. Why would you charge interest? That isn’t helping anyone out, that is you profiting off someone else’s hard times.

Can you explain ‘profiting’ if the interest charged is less than the the lender would earn on the money? I.e the bank interest that the lender is LOSING?

If there was no agreement re interest how can the lender now charge interest. Be lucky to get the money back I'd say. Is there a written agreement about repayment.

The OP has made much discussion pointless by not telling us what was agreed in the first place