Trying to get loan repaid!

GTmon

Dear All

Here's the situation: elderly father loaned a friend a sum of money some six years ago. The loan was properly documented and signed for. It was interest free for the first year, then a low rate of interest was to kick in.

The loan was originally for one year, but was re-negotiated at the end of the year, to continue.

My father died a couple of years ago, and I have inherited the debt. A small cash payment was made about two and a half years ago but nothing since then.

The "friend" has had letters from me, and letters from the executors of my father's estate, and the solicitor. No response to any of them.

I've visited the house of the "friend" several times to try to talk to him but he's never in.

So, what next? Is it worth a small claim in court, or has anyone had any success with a debt recovery agency?

And can I add my costs to the value of the loan in addition to interest - e.g. solicitors expenses? an amount for each time I've had to drive to attempt to visit him?

Would be glad to hear any advice!

GT

somethingcorporate

My advice is go and see a solicitor with the contract. How much money are we talking about?

GTmon

The original loan was for £5,000 and £1,000 was paid back. Obviously I want to keep the amount it costs to attempt to get the loan repaid to a minimum.

What else could a solicitor do other than write more letters or go to small claims court?

GT

BoGoF

Does the person have any assets/means to repay?

Even if you were to go down the road of court action etc if he/she has no means then it could well be a frustrating exercise.

Tixy

If you've got proper documentation I'd think it was worth a small claims court claim - dependant on their circumstances. Getting a CCJ can be easy, actually getting them to pay can be harder. Have you thought about what enforcement option you would take if you get a CCJ and they don't pay? are they likely to have assets that a bailiff could seize? are they employed so you could try for an attachment of earnings? Are their circumstances such that they might convince the court they can only afford £5 a month repayment to you?

You can add the costs of the making the court claim but I don't think you could add other costs as they won't have been documented in the original loan.

Have you tried a letter before action trying to get them to pay? If not do this before you start a court claim.

GTmon

All I know about the person is that he has lived in the same house for quite a few years, has a car and I think is self-employed. I really don't know what his financial situation is. Frankly, not feeling sympathetic since this individual just won't communicate about the issue. I'd like to think that I'm a reasonable person and would have been willing to agree a sympathetic repayment scheme but the lack of communication has robbed me of much kindness!

GT

BoGoF

It's not a case of sympathy more of what you can actually achieve. Is it can't pay or won't pay. If the former then going to court may not change anything.

Are you one of the Executor's?

GTmon

Yes, I am an executor.

somethingcorporate

I think it's probably worth a small claim then, given the value of the loan. It will cost a few bob to put the claim in but probably worth the risk.