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  • FIRST POST
    • Glenn Stubberfield
    • By Glenn Stubberfield 9th Sep 17, 3:51 PM
    • 9Posts
    • 1Thanks
    Glenn Stubberfield
    Some advice please- a loan went wrong
    • #1
    • 9th Sep 17, 3:51 PM
    Some advice please- a loan went wrong 9th Sep 17 at 3:51 PM
    Hi,

    I'm hoping to get some sound advice on a situation arising from a loan I lent a friend some time ago.
    Back in March 2015, A freind and colleague who I'd know for a quite a few years up until that point asked if I wanted to be involved in a business deal.
    He offered to be a guarantor if I paid money through him to several foreign students coming into the UK requiring education costs.

    He offered to pay me %20 interest on the overall loan (which was actually in several chunks) and I greedily accepted.

    The guy reckoned he could pay back £500 a month which seemed fine to me.

    Long story short though, he has paid me quite a chunk back but is now missing payments on a regular basis. It's come out that he's actually a chronic gambler and has now moved jobs to try and save himself some embarrassment.

    The sum is quite large so I have had to nudge him along sometimes to pay but since he has moved jobs he is now ignoring my efforts to get in contact.

    I have now informed him that this could end up in court and am sending him a pre action letter over the weekend.

    That's the basics of what happened anyway, but I'm curious if i do have to take this to court am I able to still claim the total amount including the %20 interest or do I have to disregard the interest?

    I do understand that I would probably lose some of it anyway due to taxes and that's ok.

    Also, I never did get a written contract or note from him but do have bank transfers of cash going from my account and others indicating re-payments.

    I have tons of phone text messages stored and Facebook messages as well.

    Please could anyone advise if I have a case and the best way to go about it?

    The amount I would want to claim is just under £10,000 and I'm aware that would fall under the small claims court.

    Thanks very much.

    Yes... I was a gullible idiot...
Page 2
    • Glenn Stubberfield
    • By Glenn Stubberfield 11th Sep 17, 2:22 PM
    • 9 Posts
    • 1 Thanks
    Glenn Stubberfield
    To StopIt:

    Yeah I agree with that.
    I don't know if he's done this to others or if and how much debt he owes out.
    I guess if it went to court and it turned out he owed multiple thousands to to others as well, the court might throw the case out because he just can't afford it?

    He was talking about holidays not that long back though and that does not come across someone who is just above water...
    Last edited by Glenn Stubberfield; 11-09-2017 at 2:37 PM.
    • Glenn Stubberfield
    • By Glenn Stubberfield 11th Sep 17, 2:33 PM
    • 9 Posts
    • 1 Thanks
    Glenn Stubberfield
    Focusing just on an AOE:

    Would I then have a case to seek this if I won a judgement and he still neglected to pay?
    As I've said, he is in full time employment and I understand I can seek an order to for the courts to check if he can pay or not and how much.

    Or does an AOE not work like that?

    Looking at the info on the Gov.uk site it seems straight forward enough.

    Cheers
    Last edited by Glenn Stubberfield; 11-09-2017 at 2:36 PM.
    • StopIt
    • By StopIt 11th Sep 17, 3:02 PM
    • 1,391 Posts
    • 1,183 Thanks
    StopIt
    To StopIt:

    Yeah I agree with that.
    I don't know if he's done this to others or if and how much debt he owes out.
    I guess if it went to court and it turned out he owed multiple thousands to to others as well, the court might throw the case out because he just can't afford it?

    He was talking about holidays not that long back though and that does not come across someone who is just above water...
    Originally posted by Glenn Stubberfield

    Does it not?


    If the guy is maxing the credit cards to gamble etc, who is to say you're not the first mug he has fleeced?


    It's rather like a Ponzi scheme, he'll be taking money off anyone he can, paying them back a bit from the next person he borrows from, and using a bit to live the high life off too.


    It doesn't mean he isn't due a massive financial brick wall hitting him one day.


    However, court action will soon flush out anything like that. If you get a judgement against him and get to the HCEO stage, any realisable assets becomes fair game. If however he is indeed up to his proverbial in debt, and then declares bankruptcy, you're out of luck.


    The key thing is your risk appetite. Are you willing to lose even more money trying to get this back? If so, and know the risks, go right ahead and haul him into court. A court would never throw a valid debt out of court, but they can't get you money that doesn't exist either.
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