Debt Collection Attorney NYC Loan Litigation Full Recovery

The client had provided multiple transfers of funds over time to a longtime acquaintance who claimed urgent financial need.

Because of personal trust and familiarity, no written promissory note or loan agreement was prepared at the time of payment.

As communication gradually ceased and repayment promises went unfulfilled, the client recognized that voluntary repayment was unlikely without formal legal intervention.

Funds were transferred in several installments, including transfers to a third party account at the borrower’s request.

Although repayment was repeatedly promised through messages and phone calls, no payments were ever made.

The informal nature of the transaction later became a central issue when the borrower asserted that the money had been provided as a gift rather than a loan.

Without a signed loan agreement or promissory note, the borrower argued that no enforceable obligation existed.

Under New York law, however, a loan may still be established through circumstantial evidence demonstrating intent to lend and intent to repay.

The attorney therefore focused on assembling indirect but persuasive proof to establish the existence of a loan relationship.

Because the funds were transferred to an account not held in the borrower’s name, the borrower claimed not to have received the money directly.

This raised issues regarding beneficial receipt and control over the funds.

Establishing that the transfers were made at the borrower’s direction became essential to overcoming this defense.

Bank transfer records were organized chronologically to show consistent patterns of payment, amounts, and timing.

Each transfer was linked to contemporaneous communications requesting funds or confirming receipt.

This documentation allowed the court to infer that the transfers were not random gifts but part of an ongoing loan arrangement.

Text messages and call records were introduced showing repeated statements such as promises to repay within a certain period.

These statements were critical in demonstrating the borrower’s own understanding that the money constituted a loan rather than a gratuitous transfer.

Taken together, the evidence supported a clear narrative of debt acknowledgment under New York civil standards.

The court rejected the borrower’s claim that the funds were a gift and recognized the borrower as the effective recipient of the transferred money.

A judgment was entered ordering full repayment of the outstanding loan balance.

This outcome confirmed that even without formal documentation, unpaid loans may be fully recoverable through structured legal advocacy.