Ok, so I heard that if you are loaned money, and NEVER pay back, it is NOT a bannable offense! Is this true???
No. It is banable. The problem is getting evidence. Nearly impossible if its been more than a week, lets say.
Personally, as A mod I would require screenshots of paying and a complaint. I would then ask the person who did not pay if they didnt pay you back. If it is at all evident, whether they directly say it or not that they cheated the complainer, I will ban them. Also, /bal check them to see if they have the money or not already for unban reference. They ussually admit to it.
This is why I think for money situations, there should be a forum that people can post a "written" agreement. This way both parties have something they can fall back on and obligate themselves to.
That's a great idea. Have you posted this in the suggestions fourm @rikari88 ? If not I will post it there on your behalf.