Loaned money to my (now ex-) fiance

moneysavinginexpert

Hi guys,

Any advice on the following would be much appreciated...

Before i met him, my now ex-fiance had built up a lot of debt to a number of people including family members, and companies/shops. As he was in so much trouble, I took out a £10k loan (the amount he asked for - i didn't know the exact amount he owed) to help him pay off the debts, as he personally couldn't get any more credit due to his poor credit rating. We have since split up and he is now refusing to help me with the repayments of ~£200 a month for the next 7 years. He did originally offer to pay half the repayment amount every month but i'm pretty sure he will not do that for 14 years (not many people would!).

It is only since we have split up that i have found out that not only did he use the £10k to pay off his debt to the aforementioned people, but the day after i received the money in my account and transferred it to his account, he used a few thousand of it to buy my engagement ring and book our engagement party!!!

When i originally transferred the money into his account it was his account only. A few months later we made it a joint account. This is how i have been able to look back at the account history to see how he spent the money i lent him. I can also see that about a week before i got the loan he was charged ~£70 by a credit agency for a credit check as he had attempted to take out a loan for himself, which obviously failed (due to his poor credit rating) hence him wanting me to do it. And prior to us making it a joint account, there is one record of him transferring a repayement amount (~£200) back to my account with a reference including the word "loan" implying that i did only lend him the money, it was not a gift!

I have been to see solicitors and they have suggested that i have sufficient evidence to prove i loaned the money to him, and that it was not a gift, and therefore i should be able to get the money back from him but may have to go to court. The first step is to send him a letter stating we have this evidence and hope he settles it immediately somehow, or at least signs a legal agreement to pay me a set amount monthly until the loan is paid off. However i am worried he will contest it and we will enter into a lengthy disagreement that will cost me a lot of money in legal expenses with, obviously, no guarantee i will ever get my money back.

Can anyone here offer me any advice as to how strong my case is, anyone with a similar experience maybe as i think the solicitors are potentially just telling me what i want to hear. I'm really struggling to make ends meet now that i'm on my own and the ~£200 repayments for what is really someone else's debt are financially and mentally draining.

Tixy

What evidence do you have? just the word loan on your statement? Did you have anything written down between you? do you have evidence of him starting to make fixed repayments to you just after you put the money into his account?

If there is nothing in writing, either an agreement or letters / emails from him referring to repayment or the loan then I'm not sure you will be that likely to be successful in court. When he offered to repay half the amount was that verbally or in writing?

The other very important thing to conisder is what will happen even if you do get a CCJ - in cases like this if the debtor doesn't have any assets and already has a messed up credit file you might struggle to enforce the debt.
The main ways to enforce a debt are instructing bailiffs - which can be fairly easily kept out of his house and so only if he has an expensive car that he owns is that likely to net you a result, or possibly an attachment of earnings - whereby his employer is ordered to deduct a small amount each pay period from his wages - this obviously is only relevant if he is employed, but could still take you a very long time to recover your money.

Can you sell your engagement ring to help you pay a lump sum off the debt? at least thats one asset you have from it that could help you out a little.

As an aside is the joint account now closed? and if so have you filed a notice of disassociation from him with each of the credit reference agencies?

[Deleted User]

Very odd that the solicitors would tell you that you have a case and would be worth going to court and incurring lots of legal fees.

Almost as if they stand to benefit. Hmm.... :think:

ihateyes

Waste of time tbh........ and it seems you will have to write this off, and learn.

Even theough their is a reference of Loan....thats it, but who's loan? the loan you took it? that reference loan doesn't imply him.

Obviously you have been niave in this, but with him skint didn't you question how he could afford to Buy an engagement ring? though an engagement party?

Can i also ask who has the ring now?

Even if it did go to court, the judge would immediately take the cost of the ring and party out of the amount your claiming, as this benefited you as well.

You ex could argue you knew the loan was for this purpose as well.

All hearsay, hard to prove, unless written agreements.

Sorry.

Vomityspice

Sorry, but I'm a bit confused ?? You've seen a Solicitor (who has indicated that you have a cause of action) but you want other people to give you an indication of how 'likely' you will be if you pursue this debt?? Is that your position?

If it is then I (like others no doubt) will need a bit more information.

i.e.

Before commencing legal action (You don't need a Solicitor, you can make a small claim application yourself. Google EX50 for the current costs for application - depending on how much your intending to claim) you need to make a decision on if your going to be wasting not only your time, but also your money.

Does your Ex have any 'tangible' assets? House, Car, Employment (that they are keen to keep!). If they have no money (as the reality from your description is that he is in debt) then the best advice I can give is stop now.

Whilst you may feel that you want to punish your ex for putting you in this position and get your money back, it is frankly madness to spend any more money without any possibility of recouping the expenditure. Unless you are happy to wave goodbye to another £500+ to get this man a CCJ (which may well impact on his future ability to do lots of things) you need to determine how likely it is he has sufficient assets to make any proposed action worthwhile.

If you do believe that your Ex does have the financial resources to pay you then as advised by your Solicitor, the first step is to send a 'Letter before Action' (LBA). If your clever, the letter can be tailored to implicate him in the 'loan'. I.e. your letter could make the statement that the money owed was loaned to the ex, on his request, to consolidate and pay outstanding debts.

Given this will be a civil application the burden of proof is less (than in a criminal case), so you need to decide it you are prepared for the aggravation and time involved.

KingElvis

You're flogging a horse SO dead there that it has flies and stuff buzzing round it.

Write it off and avoid shysters in the future.

blacksta

Solicitors fees always gets paid - whatever the outcome

chesky369

Didn't the fact that he had no compunction in borrowing (and not paying back) from his family warn you that he was seriously lacking in morals where finances were concerned?

I hope you can afford the solicitors' fees, the court fees and then come away disappointed. Even if the judgement goes your way, you will probably never be able to enforce it.

iolanthe07

you can make a small claim application yourself.

The OP is owed £10,000. The Small Claims Court has a limit of £5,000. It would have to go to the County Court.

moneysavinginexpert

Thanks for your help guys.

An update is that we have now got back together, and i have forgiven him for everything and trust him fully

Eonel

Well done, you've got a real catch there.