[Case Summary]This case involves a civil loan dispute. On November 14, 2018, the defendant, Zhou *, issued a promissory note to the plaintiff, Liu *, stating that the loan amount was 150,000 yuan, to be repaid in five installments of 30,000 yuan each per year, with an interest rate of 1% per month. The plaintiff paid a total of 150,000 yuan through bank transfers on November 14, 15, and 20, 2018. After the loan period expired, the defendant failed to repay the loan and did not appear in court after being legally summoned. The plaintiff entrusted a professional lawyer team from Beijing Henglu Law Firm to initiate legal action. The court confirmed the existence of the loan relationship and ruled that the defendant should repay the principal of 150,000 yuan and pay interest at an annual rate of 1% from November 21, 2018 until the actual repayment date. The court also ordered the defendant to bear all litigation fees of 3,300 yuan and announcement fees of 560 yuan. **Key disputes**: How to determine the facts of the loan when the defendant refuses to appear in court after being summoned and fails to provide evidence to refute the claims. **Applicable legal provisions**: Article 188 of the Civil Code (Statute of Limitations), Article 147 of the Civil Procedure Law (Default Judgment), and Article 260 (Interest on Delayed Performance).

I. Review of the case

In daily life, people often ask questions like "What should I do if the other party refuses to repay the money despite having a promissory note?" "Can I win a lawsuit with a promissory note?" and "How much does it cost to hire a lawyer for a private loan?" On November 14, 2018, the defendant, Zhou * issued a promissory note to the plaintiff, Liu *, stating that "I hereby borrow 150,000 yuan from the plaintiff, which shall be repaid in five installments starting from 2020, with each installment being 30,000 yuan. The repayment date shall be October 1st of each year. The repayment shall be made by transferring the money to the lender's bank account... If the borrower fails to repay the full amount on time, the borrower shall pay interest to the lender at a monthly interest rate of 1%." The defendant signed and sealed the promissory note in the "Borrower" section. The plaintiff transferred 50,000 yuan each to the defendant on November 14, 2018, November 15, 2018, and November 20, 2018, totaling 150,000 yuan, and submitted the plaintiff's China Merchants Bank historical transaction details as evidence. Now that the repayment period has expired, the plaintiff has failed to recover the money, so he entrusted Hengluo Law Firm to file a lawsuit in court. During the trial, the defendant failed to appear in court after being legally summoned by the court and also failed to provide evidence to refute the plaintiff's claims.

II. The focus of the case

  • Focus 1: Whether the fact of borrowing has occurred.The plaintiff holds a promissory note signed and stamped by the defendant, supplemented by three bank transfer records and transaction details. The defendant did not appear in court and did not submit any contrary evidence. Is the loan relationship sufficient to be recognized?
  • Focus 2: How to determine interest and the statute of limitations for litigation.The IOU clearly stipulates a monthly interest rate of 1%. The plaintiff lent the money in 2018 and sued promptly after the loan period expired in 2024. Is this within the three-year statute of limitations, and how should the starting point for calculating the interest be determined?
  • Focus 3: Can the defendant be adjudicated in absentia in the case of the defendant's absence?If the defendant refuses to appear in court without a valid reason after being legally summoned, can the court make a default judgment in accordance with the established facts and support the plaintiff's claims?

III. The professional intervention of Hengluo Law Firm

The plaintiff (the lender) alleges that:The lending relationship between the two parties is genuine, and the promissory note and the bank transaction records corroborate each other. The defendant failed to repay the loan on time and the claimant's demand for repayment has been unsuccessful. The claimant requests the court to order the defendant to repay the principal of 150,000 yuan, pay the interest according to the agreement, and bear the litigation costs.

The defendant's (borrower's) position:The defendant failed to appear in court after being legally summoned by the court, failed to submit a defense opinion, and also failed to provide evidence regarding the facts of the loan or the repayments that had been made.

Legal Opinion by Hengluo Law Firm:The plaintiff provided corresponding evidence of the loan facts, and the defendant failed to present evidence to refute them, establishing a civil loan legal relationship between the two parties. The defendant has now demonstrated by his own actions that he will not fulfill his main repayment obligations, and the plaintiff's claim for repayment of the principal and corresponding interest should be supported. The lawyer organized evidence item by item regarding the formal requirements of the IOU, transfer delivery certificates, and the legality of interest agreements, and reminded the plaintiff to file a lawsuit in a timely manner to avoid exceeding the statute of limitations and facilitate subsequent applications for enforcement.

  • Submit the original promissory note and the page signed and stamped by the defendant to formalize the loan agreement
  • Submit the detailed transaction history of China Merchants Bank to prove that the 150,000 yuan has been actually delivered in three installments
  • It is claimed that the interest shall be calculated at a monthly interest rate of 1% from the day following the last delivery, that is, November 21, 2018

IV. Outcome of the case

After the court's trial, it was determined that the plaintiff provided corresponding evidence of the loan fact, and the defendant failed to provide evidence to refute it. Therefore, a civil loan legal relationship was established between the two parties. The defendant has demonstrated by his own actions that he will not fulfill his main repayment obligations. Therefore, the plaintiff's claim for repayment of the loan principal and interest is supported. Judgment: The defendant shall, within ten days from the effective date of this judgment, return to the plaintiff the loan principal of 150,000 yuan and interest (based on 150,000 yuan, at a monthly interest rate of 1%, calculated from November 21, 2018 to the date of actual repayment); if the defendant fails to fulfill the obligation to pay money within the specified period in accordance with this judgment, he shall, in accordance with Article 260 of the Civil Procedure Law of the People's Republic of China, pay double the interest on the debt during the delay in performance; the case acceptance fee of 3,300 yuan and the announcement fee of 560 yuan shall be borne by the defendant. The defendant's failure to appear in court after being legally summoned does not affect the court's making a default judgment in accordance with the law.

5. Hengluo Law Firm's Reminder

This case is handled by the professional lawyer team of Beijing Henglu Law Firm, who provide full-process legal services to the client. Lawyer's tip: According to Article 188 of the Civil Code, the statute of limitations for suing to protect civil rights in the People's Court is three years. Timely suing can effectively avoid losing the case due to exceeding the statute of limitations. In real life, "claiming to be poor doesn't necessarily mean being poor". After the creditor sues, he can entrust a lawyer or apply to the court to inquire into the debtor's property status, such as deposits, bonds, stocks, fund shares, etc., so as to truly understand the debtor's repayment ability. After winning the case, the creditor can apply to the court for compulsory execution with the effective judgment document. The court has the right to seize, detain, freeze, transfer, and auction the debtor's property, and may, in accordance with the "Regulations of the Supreme People's Court on Restricting the High Consumption of Debtors and Related Consumption" and "Regulations of the Supreme People's Court on Publishing the Information of Debtors on the List of Untrustworthy Persons", restrict the debtor's high consumption and list him as an untrustworthy person, forcing the "deadbeat" to repay the debt actively. 本案由北京恒略律师事务所专业律师团队代理，为当事人提供全程法律服务。律师提示：根据《民法典》第一百八十八条规定，向人民法院请求保护民事权利的诉讼时效期间为三年，及时起诉可有效避免因超过诉讼时效导致败诉；现实生活中“哭穷不代表一定穷”，债权人起诉后可委托律师或申请法院查询债务人存款、债券、股票、基金份额等财产状况，以便真实了解偿债能力。胜诉后凭生效裁判文书可向法院申请强制执行，法院有权查封、扣押、冻结、划拨、变价被执行人财产，并可依据《最高人民法院关于限制被执行人高消费及有关消费的若干规定》《最高人民法院关于公布失信被执行人名单信息的若干规定》对被执行人限制高消费、列入失信名单，迫使“老赖”积极还款。

VI. Common Questions About Private Lending Cases FAQ

  1. Q: Even though I have a promissory note, the other party still refuses to repay the money. Is it worth suing them?
    A:It's useful. A promissory note and transfer records are enough to prove the loan relationship. If the other party fails to appear in court after being summoned or fails to provide evidence, the court may issue a default judgment in favor of the plaintiff's claim. After winning the case, the plaintiff can also apply for enforcement.
  2. Q: Can you win the case even if there's only a promissory note but no transfer record?
    A:For large cash loans, additional supporting evidence such as withdrawal receipts, receipts, and chat records are needed to prove the delivery of the funds; for small loans, the promissory note itself has strong evidentiary value, but it is still recommended to leave a record through bank transfers whenever possible.
  3. Q: Is the interest rate of 1% per month stipulated in the promissory note legally protected?
    A:The monthly interest rate of 1% equates to an annual interest rate of 12%, which does not exceed the judicial protection cap. The court generally supports it, and the interest can be calculated from the day after the actual delivery.
  4. Q: If the other party doesn't appear in court, do I not have to pay it back?
    A:No. If a party refuses to appear in court without a valid reason after being legally summoned, the court may issue a default judgment in accordance with the law. After the judgment takes effect, the creditor may directly apply for enforcement.
  5. Q: What should I do if I can't get the money after winning the lawsuit?
    A:You can apply for compulsory enforcement based on the effective legal document. The court can investigate and control the debtor's assets such as deposits, stocks, and real estate, and impose restrictions on the debtor's high-consumption behavior and add them to the list of dishonest people, in order to maximally recover the creditor's rights.