Family Loan - Gone Wrong please help

Damocell

My wife and I borrowed £15,000 from my mother to buy our house. She took out the loan from a bank and we agreed to make the monthly repayment.

We signed a document saying that we would make the monthly repayments as agreed untill the end of the loan with the bank.

We have made the payments as agreed into her bank account with a reference "Loan".

Unfortunately we have fallen out with my Mother and she is now asking for the loan to be repaid in full. We do not have the remainder of the money, approx £12,000 and we cannot take out a loan as no one will give us one.

My mother has now said she is going to get her solicitors involved as she wants the money repaying in full and we will have to pay the costs.

We are happy to keep repaying the loan as agreed.

Can she get her solicitors involved? where do we stand? Can she ask for the money back in full?

Many thanks

Damo

Chie

If the loan is in her name, there's not a lot she can do.

Just carry on paying the monthly payments and ignore her.

Damocell

The loan is in her name, so is there nothing she can do?

Many thanks

Damo

TonyMMM

When you signed the "document" - who drew it up ..a solicitor or youselves ?..... and does it say anything about the loan amount being repayable on demand ?

Damocell

My mum drew up the document, I have asked for a copy, it didn't say anything about the loan being repayable on demand.

Damo

TonyMMM

"Can she ask for her money back in full ..." She can ask, doesn't mean you have to pay though.

"Can she get her solicitors involved ..." Of course she can - anyone can consult a solicitor over anything they like - again, it doesn't mean they will take any action - I would expect a decent solcitior to advise her she isn't going to get anywhere, but they will probably write you a letter on behalf of "their client" demanding immediate payment, just to see what you do.

I would recommend you follow the advice given by Chie - keep making the payments according to the agreement you have and ignore her threats.

Damocell

Thanks for the advice

Damo

bryanb

I would advise to get receipts for any payments you make to her, also ask her to put in writing the amount still outstanding. How else can you prove what you have paid? Presumably you don't have access to the account you're paying in to?

Damocell

The payments have been paid straight out of our bank account into my mums, with the reference "Loan" so they all show up on my statements. Is that enough proof?

I'll ask what the outstanding balance is.

Damo

robnye

Damocell wrote: »

The payments have been paid straight out of our bank account into my mums, with the reference "Loan" so they all show up on my statements. Is that enough proof?

I'll ask what the outstanding balance is.

Damo

i would also suggest you double check your own bank statements to see how much have paid - to make sure the two figures match

hoggums

Tell her to shut up and not go back on her agreement or you'll stop your monthly payments altogether.