How to get money lent back again!!!

db.69

Hi,

Im not sure if this is where I should be posting but if it isnt Im sure someone will redirect my question.

A while back I helped a close friend out of a lot of financial trouble. They were going to lose their house and a lot more besides. I cleared there arrears in rent, gas, electricity, council tax and various other clubs and credit facilities to which they had fallen into arrears.

At the time I was very uncertain and dubious but finally agrred to clear everything to a grand total of £8200. To start with they paid back money we agreed on, as I had out it on my credit card. This went on for about 15 months. they have now stopped paying altogether and are now not answering my phonecalls, emails or any other means of communication.

I really dont know what to do, I have asked them to pay something, anything even as I really cant afford to pay there bill, and although I am it is proving to be very hard on my own finances.

There outstanding balance on the money I owed them is just short of £6k.

Just a question to see if anyone has any idea what I can possibly do next. Needless to say the friendship has gone down the pan but I am struggling myself now and any help would be greatfully received.

Thanks,

Davy

Homer_J

Hi Davy,

Do you have a written agreement with your former friends to repay the debt? If so, I would have thought that Small Claims Court would be your best bet, although the maximum you could recover would be £5000. If this loan was just done on a 'gentleman's agreement', you could still use SCC, but you would have a much tougher time proving your case, as it would just be your word against theirs. Make sure you keep copies of all correspondence with them, including a record of all your phone calls, even if unanswered.

Other than that, I'm not sure what to suggest, although I'm sure wiser people than I will be along soon to help you out. Best of luck!

Poosmate

Not sure how you stand legally with getting the money back off your ex friend but the debt is now yours as it's in your name.

Have you threatened to take your friend to Court? You may be able to get your money back through the Small Claims Court, I don't think you even need a Solicitor for this, I think you just pay £30-£50 to submit your claim to the Court. I'm not sure though, it was a long time ago that I was looking into doing this.

Good luck.

Poo

P.S. Sorry Homer asked what I forgot to ask i.e. about written agreement with ex friend.

Kay_Peel

I would put off any thoughts of legal action until I had hunted them down!

If they are not answering phonecalls or emails then I would visit the house. If they didn't open the door, I would call at the neighbours next door and confirm that they are still living there. I would then put a note through the door asking for an explanation as to why they were avoiding me.

I would repeat the action the following day and the day after that and I would make a bloody nuisance of myself until they faced me.

In other words I would show my friends that I was determined to seek them out and that I wasn't a soft touch.

They have to face the situation and give you an explanation for falling into arrears. They can't bury their heads in the sand and hide from you forever. My trust in them would be gone forever, I'm afraid, and I would not put any faith in the-cheque's-in-the-post type promise - but I would want to know where I stand and what chance I have that the debt will settled fully as soon as possible.

aaronm_2

Be determined and if it is necessary, Small Claims Court is a good choice like what they've said. I understand that it is very difficult for you to do such a thing because he was once a close friend to you. But at this time, you are standing on the right side. So don't hesitate and raise your courage to get what you deserve. But don't do something overreacted.

db.69

Thanks guys, I think I just needed to be reassured that the small claims court was the way to go.

However, I also know the legal system here in Scotland is different so will this affect the small claims court claim?

I do know where she lives and works but didnt want to get hit with any harassment hassles.

I dont have much paperwork as she was paying it off ok, as agreed, and thought that things were going to be fine. I only have the odd amounts on my statements really which were about 3 years ago now.

And again for the same reason, no there is no written agreement.

In hindsight, I feel like a complete idiot.

Davy

gonzo127

well you shouldnt feel like an idiot, no one would ever want to believe a friend would screw you over in this sort of way, that is why you are their friend.

i would however say it sounds like this person probably didnt get the help they needed to get educated about debt, becuase you bailed them out.

i am guessing that the reason they have disappeared is probably because they are in the same situation as before but now also owe you on top (wonders of consolidation loans)

i would definatly write a letter and pop it through their door at least. explaining that you want to sort this out 'as friends' however if they do not get in touch you are going to have to look into the other options available to you to get back the money you have lent them such as small claims court, you could even suggest that you are willing to go through their finances with them and make a SOA (and get it posted on here for us to help) so you can try and help them that way but still get your money back

the other way that might get a result is do they have a partner? if so you could write to this partner asking them if they can get your friend to contact you urgently - ok do not put any details in the letter about them oweing you money but it might cause your friend to confess to their partner about the mess they are in allowing for some progress to be made and for them to actually get in touch, even if only to have a go at your for involving their partner!

savingmummy

I really feel for you!
I can`t believe it when friends do this BUT it does happen.
My parents helped out my older sister £10k and have had not 1p back, now lost all contact with her.
They previously helped a neighbour out with 4k and the same happened!

It is classed as a gift if no written agreement or legal papers etc.

I hope they do pay you back and make some contact.

Kay_Peel

It sounds to me as though you don't like confrontation, otherwise you would have been more determined to get a response from your debtors.

You say that you don't want to make yourself open to the accusation of harassment - is that just an excuse?

If you are not prepared to visit the house, or sit outside the house for a couple of hours until they answer the door, then shouldn't you at least consider writing a formal warning letter sent by recorded delivery?

I think it weakens your case that you haven't spoken to your debtors yet. A small claims court is not sympathetic to claimants who use the court as a first resort rather than a last resort.

Good luck with it.

C_Mababejive

I always say that the best place to borrow money is the bank. If they wont lend it,then why should I?

I doubt you will see your money back. Thats why this person got in debt in the first place. they are probably useless with money.

DarkConvict

Having it in writing would really help prove it was a loan not a gift.

If you can get him to reply in an email/letter that he admits to owing it but either cane afford it or is avoiding for some other reason, the admission to the debt will help your case.