Lending money to friends & family

ericthekidstoner · 24 April 2006 at 5:00PM

see trace-j's post on Sticky Thread Sticky: Lending money to friends page 3?

http://forums.moneysavingexpert.com/showthread.html?t=76953&page=3&pp=10

CalamityJane_2 · 25 April 2006 at 2:00AM

Hi again, I asked trace-j but she doesn't appear to be around at the moment. Does anyone else have a template please?

Flashfly · 12 May 2006 at 11:21AM

Hi all,

I have been offered a loan from my family so that I can undertake training for a career change. I want to set up a formal agreement to cover this loan.

I have had a look online and there are plenty of companies that offer templates but they all charge between £10 and £50.

Does anyone know where I can get a cheap (or free) template?

Thanks.

savvy · 13 May 2006 at 5:44PM

Hi flashfly
Another poster did have one, but don't think she's been about recently to pm her

I'll move your post up to the lending family/friends thread, and then hopefully you might be able to pick up some points from there that you could include in your form.

HTH
savvy

Serendipity · 31 May 2006 at 12:07AM

I've read the posts in this thread and it's sort of reassuring to know that I'm not alone in breaking the rule about never lending to friends.

I think I may be more fortunate than some, because the friend I lent to (now my daughter's ex) is keeping in touch, has made some repayments, and is saying he will sign a loan agreement for the remaining balance.

But I have a few questions:
1) Is a loan agreement actually worth the paper it's written on?
2) If so, is there any advantage in having a loan agreement witnessed?
3) Can we sign the agreement separately and fax email or post it to each other?
4) If the debtor leaves the UK to live in the USA (as seems highly likely) is the loan agreement worthless?

Sorry to join the forum and ask a question in the same breath, but you all seem very friendly and clued-up, and if I can share any of my wisdom (yeah, right!) I'll certainly chip in...

el_leach_2 · 8 June 2006 at 2:14PM

First time I've posted anything so not sure if I'm in the right place.
Anyway here goes:

In September 2005 I lent my girlfriend £800, my dad also gave her £650 for some shares she had in the company she used to work for. I also got a mobile phone out in my name for her - she had a bad credit rating!! She had been travelling for 2 months and the money was for a deposit/1st months rent for a new flat.

Two weeks later we had split up and she hadn't found any work so hadn't paid any of the money back. She promised to pay me back when she got a job. After another 2 weeks she moved to London (we are in Manchester) to work (and as I later found out, move in with an Australian guy she met whilst travelling). Anyway, she paid me back part of the £800 she owed me.

Since then she's lost her job, and run up a £350 mobile phone bill in my name. So currently she owes me £150, my dad £650 for the "shares" which she never signed over to him, and me £350 for a debt which is in my name.

She won't speak to me on the phone to discuss paying anything back. Is there anything I can do? It was all verbal agreements, although she will have cashed a cheque from my dad for the £650 and all the phone bills were in her name and she was initially paying the bill.

I know she is planning to go to Australia at some point and don't want to let her get away with running away and leaving me with her debts. I realise I've been daft and naive, but all advice gratefully received.

waveryder · 13 June 2006 at 3:26AM

I feel for people who got burned from lending money, I loaned money to friend and never heard from him after.

Dave
http://www.creditrepairfree.org
http://www.newtechnologyblog.com

lynsayjane · 13 June 2006 at 4:56PM

Heddwen wrote:

Hi

We suspect they are still living / working locally as they have a relationship with children involved. However as someone mentioned above until we can find out a new address either of residence or work conected to them we are powerless!

in my opinon, this seems like a perfect time to start playing 007. ever thought of staking out the home the kids are staying in, i presume this guy visits with them? then following him home. then you could either break his legs, tell the courts his address or, and this is my fav, both!

joakkurt · 7 July 2006 at 4:40PM

I have a slightly different problem regarding money and "friends", but is ongoing... Anyone with any advice, please let me know.

I acted as a guarantor for a woman related to my husband by marriage. (Long story, sob story, but we were tryingt ohelp her out as part of our new family). She bought a car, I signed the loan agreement. She paid me the first 3 months instalments, and then stopped.

She has failed to pay the last 4, £250pcm, ie £1000. The loan is due to run for 3 years in total, starting from Dec 06, so a long way left to go yet.

I've taken up the D/D payments again as I don't want my credit rating ruined, or me sued by the finance company, but she doesn't return my phone calls/texts, letters anything.

CAB say I'm liable for the debt, which I know, and is why I am continuing to pay, but she still have a responsibility to me, based on our verbal agreement. We don't have anything in writing between us, only a text message that she will take on the payments.

Can I sue her on the basis of the verbal agreement for the four payments missed, and get the court to issue an order for her to maintain the monthly amounts ? I know where she works and could try for attachment of earnings, but she lives a couple of hundred miles from us, so other info is hard to come by.

any ideas anyone ? Is the verbal agreement basis enough to sue her ? The guy at the garage that sold her the car knows what the score was, could a judge compel her to give his details as I no longer remember his name ?

Should I continue making the repayments ? The agreement still has £8k to run !

AMILLIONDOLLARS · 7 July 2006 at 5:27PM

is she driving around in the car? Have you spoken to her husband about this, If your name is on the credit agreement as guarantor, I would contact CAB to find out what your rights are. Personally, I'm for face to face confrontation:mad: and letting everyone in the family know what has happened.

Have a word this weekend and threaten legal action and see where it gets you!!

Good luck

Lending money to friends & family

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free