Loaned £5,500 to a friend, ignored for months, what are my options
arichmond64
Posts: 1,608 Forumite
in Loans
It's a long story, as these things always are but to cut it short.
Girlfriends best friend asks to borrow £5,500 for an urgent tax bill (4th April 2017), makes an elaborate/plausible story about her being bank frauded, her parents are away in Wales (girlfriend has been so we know it's possible) and she can't contact them, so we send her the money.
After a month of random and convenient excuses we eventually go to her house (lives with parents) to ask them what they know about it, as it turns out they didn't know a thing and are completely shocked, we thought they'd help but they haven't and it's now 4 months down the line and we have just been completely ignored.
Now I know it's stupid so no need to tell me, but we don't have any "contract" she lives over an hour away so it was all discussed via text and the money sent via bank transfer. It's clear from the texts on that night, and subsequent ones that this is a loan and was to be paid back within days of it being sent to her.
Nearly 3 weeks ago I issued her a 'Statutory Demand' on the advice of a friend, which I'm now thinking wasn't the best course of action as it's very expensive and doesn't guarantee you'll see any money back.
At this point I'm looking for advice on other approaches such as small claims court/debt collection agency etc.
Any help would be appreciated
Thanks
Girlfriends best friend asks to borrow £5,500 for an urgent tax bill (4th April 2017), makes an elaborate/plausible story about her being bank frauded, her parents are away in Wales (girlfriend has been so we know it's possible) and she can't contact them, so we send her the money.
After a month of random and convenient excuses we eventually go to her house (lives with parents) to ask them what they know about it, as it turns out they didn't know a thing and are completely shocked, we thought they'd help but they haven't and it's now 4 months down the line and we have just been completely ignored.
Now I know it's stupid so no need to tell me, but we don't have any "contract" she lives over an hour away so it was all discussed via text and the money sent via bank transfer. It's clear from the texts on that night, and subsequent ones that this is a loan and was to be paid back within days of it being sent to her.
Nearly 3 weeks ago I issued her a 'Statutory Demand' on the advice of a friend, which I'm now thinking wasn't the best course of action as it's very expensive and doesn't guarantee you'll see any money back.
At this point I'm looking for advice on other approaches such as small claims court/debt collection agency etc.
Any help would be appreciated
Thanks
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Comments
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As long as it's documented, even by text then you will win a small claims case which is relatively cheap to do. Whether she pays up or not after that is another story.0
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As long as it's documented, even by text then you will win a small claims case which is relatively cheap to do. Whether she pays up or not after that is another story.
This is what I thought, that even if it's not a "contract" per say, it's clear it's a loan from the the original text, so the many texts where she keeps saying she'll pay it back on X day blah blah blah
I've spoke to one or two debt collection companies who said the contract thing might be a problem.
Can't imagine how infuriated I'd be if a judge sided with her should it come to that.0 -
When you find out, i'd love to know what she has spent the money on
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robbieengland wrote: »When you find out, i'd love to know what she has spent the money on
Running her business, I should be getting a percentage of those profits!!0 -
Even if the loan can be proven, there is nothing to stop her claiming that she paid you back in cash.0
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I'd put it down to experience if I were you, you won't see that money again.
You can't take her to court unless you have a written agreement detailing the loan, I'm guessing you don't have that ?
Same goes for the debt collector.
Similar stories pop up on here from time to time over the years, not one of them has ever come back to say they recovered their money.
Sorry, I think it's a non starter.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
for future readers offered same sob stories:
- tax bills never come with a very very tight deadline
- it's possible to drive to Wales
- it's possible to send letters to Wales
I'd go small claims court. Someon with their own business has a need to avoid CCJs.2021 GC £1365.71/ £24000 -
BrassicWoman wrote: »for future readers offered same sob stories:
- tax bills never come with a very very tight deadline
- it's possible to drive to Wales
- it's possible to send letters to Wales
I'd go small claims court. Someon with their own business has a need to avoid CCJs.
And for those readers who are thinking of lending money to a ''friend''
DON'T0 -
If anyone dares to ask me for money i simply refer them to MSE best loan rates and let them go to a bank/BS. If they wont lend then go to one of the short term moneylenders etc. One thing that wont happen is that it wont come out of my pocket. OP,dont waste any more time. Get over to MCOL and raise your claim. Hold her feet to the fire.Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..0
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davidwood123 wrote: »And for those readers who are thinking of lending money to a ''friend''
DON'T
In this instance it wasn't even a friend, it was a friend of a (girl)friend, whose parents were incommunicado due to being stuck in a third world communication blackspot.0
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