Verbal Agreement-Small Claims Scenario.

Let's say my brother gave me a loan for an automobile for $4000. I trusted him enough and felt secure to take him up on his proposal, since I really needed a method of transportation at the time. I felt secure because I would pay $180 over 24 months at 7.5% interest. Since he was family we didn't feel the need for a written contract and we just went with whatever. The title is now in my name and the car is registered to me. He used the automobile as collateral for the loan. I agreed.

4 months pass with payment on time-the first of every month.

Due to financial difficulty in the family and my parents about to lose the house he decides to alter the agreement and make me pay the full amount of the remaining payments in a short two weeks notice on the first of the next month. He demands that I pay $3200 or surrender the car.

As a brother I trusted I was only cordial to tell him about my financial life. So he knew the amount of money I had and made. After this sudden backstab, I feel as though that his demands are highly unreasonable, inconvenient, and not in my budget.

He called and demanded that I pay him. I declined just to see if he would care at all about my difficult financial situation. He did not. He came and took my keys. I did keep a spare and since I felt the need to defend myself legally with the title in hand, I did not hesitate to drive my car.

I still have the title in hand with the car registered to me.

He did demand the spare key during an incident in a parking lot and I gave them to him out of fear, since he threatened me. He grabbed me by the shirt and had his fist ready to strike my face. Bystanders pulled him off me and he drove off with the spare key after I mentioned legal action. The police officer I called to the scene due to the threatening calls he made beforehand arrived late; but he had my brother drive back and return the keys to avoid a 'strong arm robbery charge' by me. (I drove to a retail store since I felt it was still my car).

He claims I agreed to pay the entire loan off when I could but I can't recall ever saying that I was required to. I felt secure enough to go through with it and not expect any required payments over $180 at 7.5% intrest /mo. He pretty much let money get in the way of our relationship as brothers.

If we enter small claims court, would I have a good chance at winning the case?

To add, I live in the state of California.

[M-lien]

I think you had a case, since you did not sign any contract with him when you got the money from him, it was verbal, and verbal I believe does not stand in court. You have all the rights to your car since the title to the car is in your name. he cannot get it away from you or you can sue him.
Maybe it will be better if both of you try and talk about this when both of you are relax, let it cool down, maybe both of you are still fuming mad and hot. Remember that you two are blood brothers. Don't let money destro your relationship between brothers. That's all I can comment.

His argument is that I surrendered the car which was a verbal agreement.

I surrendered the car because I wanted to see if he cared. I didn't think it was a verbal agreement at the time, It was just family talk.

My argument is that if I really wanted to surrender the car, I would have transferred the title to him. I did not.

He changed the original loan agreement terms though...and I think that's a big deal.