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lent money to a "friend" whose now evading me

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lent money to a "friend" whose now evading me

edited 5 October 2012 at 4:37PM in Old Threads
11 replies 2.1K views
londonTigerlondonTiger
4.9K posts
edited 5 October 2012 at 4:37PM in Old Threads
I had to help out a friend with a short term business loan of £1200 in the understanding that he's going to pay me back.

I didn't set out a loan agreement per se. Everything was done over text message.

text:
Him: "bro I need £1200 from you, I'll pay you back next Thursday"
Me: "Ok but I need the money back as soon as you can pay it"

Email:
Me: "Listen it's been over a week, I haven't heard back from you. I need the money my accounts are close to zero"
Him: "don't worry I'm paying out, what your account details? I'm sending it now"

Me: [4 days later] "hey man bacs should have come through by now, but I haven't received anything yet, what's up".
Him: [lots of excuses] "it's in the payment run man. It was supposed to leave but it didn't, I'll fix it and send it again"

Next Lots of conversations over phone. telling me that it's in the payment run.

text:
Me: [pestering him some more]
Him: Don't worry, It was in the payment run but something went wrong. I don't know what's going on I'm calling the bank and get back to you what the bank says.



That's the jist of it. I didn't expect to get a promissory note from him over these amounts. I really thought that he would honour his word. But this is just ridiculous.

Do I have enough proof from these communications above to say that there is a sort of loan agreement in place? The whole incident only started a month ago. It's been three weeks now since the payment was due. Is that sufficient time to wait to receive payment before taking it up with the civil courts?
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Replies

  • CKhalvashiCKhalvashi Forumite
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    He's breached the agreement, so it can be taken to small claims/moneyclaim online.

    CK
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

    I can spell, my iPad can't.
  • pmlindyloopmlindyloo Forumite
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    Before taking this to the small claims court (see here about how to do this:http://www.adviceguide.org.uk/england/law_e/law_legal_system_e/law_taking_legal_action_e/small_claims.htm

    it would be sensible to write a letter headed 'Letter Before Action' to your friend. Do not send by recorded delivery as they can refuse to sign for it and will deny that they got it. Send 2 copies from different post offices keeping a copy of the letter and the free receipt.

    In the letter set out what has happened - when the money was lent, what it was for, date it was lent, and the promises made to send it through the bank.

    State that if the money is not repaid within 5 days then you will have no option but to pursue this through the Small Claims Court as is your legal right.

    Keep it very formal.

    You could, if you were feeling generous suggest a repayment plan by DD of a certain amount per month. Only do this if you are sure your friend will stick to that arrangement.

    Unfortunately people have been taken to the Small Claims Court and still do not pay back the money or are given a repayment plan which they don't stick to. There are various ways to try and get back your money even in these cases but it can be a very long and drawn out procedure and is not always successful.

    Hopefully the threat of court action will make your friend realise that you mean business.
  • McKneffMcKneff Forumite
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    Why dont you just speak to him............

    Bloody text messages.................
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Fergie76Fergie76 Forumite
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    Because at least by text message he now has written proof that it was a loan and not a gift, rather than relying on word against word.
  • Voyager2002Voyager2002 Forumite
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    McKneff wrote: »
    Why dont you just speak to him............

    Bloody text messages.................

    The log in the OP includes summaries of telephone conversations as well as text messages.
  • McKneffMcKneff Forumite
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    I understand about the text messages to start with and getting the proof, but
    afterwards, surely 'friends' should be able to speak to each other.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • McKneff wrote: »
    I understand about the text messages to start with and getting the proof, but
    afterwards, surely 'friends' should be able to speak to each other.

    precisely because of what voyager has said. there were telephone conversations inbetween, but i didn't write them out because I cannot recall exactly what was said. With tect messages and emails not only do I have proof, but I can recall exactly what and when it was stated
  • I was always against loaning money to friends because friendships can get destroyed over these things. It's good to know what I do have some sort of loan agreement that is enforceable. But, obviously it's not nice to get court summons letter for being sued by a friend. So I'm not going to leave the civil court issues as a last resort and see if the money materialises.

    It's not the money that's annoying me. it's the fact that he keeps saying "money's sent, will be in your account soon". Then I keep checking my online banking on day 2,3 & 4 and there's nothing in the account. I even phone up my bank and they just blankly state if there's no money in the account after 4 days then no money has been sent. Period.

    Make me look like a complete fool, which makes me angry and want to take drastic action.
  • PlutoinCapricornPlutoinCapricorn Forumite
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    Perhaps this is the first time for you, but this sort of thing is extremely common: people say anything to get your money, then come up with a series of plausible explanations for their failure to repay. Investment scammers do it too.

    Yes, it is well known that lending money destroys friendships. All we can do is learn from the experience and not get 'taken' again. We can ask what the money is for and what other options they have for example. It takes time and experience, but we can learn to be good judges of character, bearing in mind that the 'better' sort of person would probably not ask directly, just mention some trouble they were in.
    Who having known the diamond will concern himself with glass?

    Rudyard Kipling


  • £1,200 for someone that says they are a friend? You've got off lightly.

    LBA and then small claims court. Don't expect to remain "friends" with them.
    Thinking critically since 1996....
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