Hi - New User with a problem - Loan to friend via paypal/CC

Coder

Hi,

Wasn't sure where this should go so I'm posting here for now.

Scenario:
A long-term internet friend had some financial problems, so I loaned her £hundreds. The loan was sent through paypal against my credit card. I offered the loan and she agreed to take it, sent me a money request from her "business" paypal account as a payment for goods/services and I paid from my paypal - which took the money from my credit card (new paypal account as I wanted to keep this seperate from my normal stuff). There was no real discussion about when to re-pay, but the intention was that this was a short-term thing.
Things dragged out when I started to ask when she could re-pay, past the PayPal 45day thing for disputes (I filed a dispute and they pointed out that it was past 45days). Now she's saying she can only pay me back £x a month and can't afford to re-pay me in a reasonable timescale, the amount she's talking about will take her 4yrs with zero interest just to pay back what I loaned her.
I'm none too happy and told her this. Plus each £x paypal "re-payment" incurs fee's so I'm losing out on that plus the interest my credit card is charging.

I'm not some idiot, I haven't been duped into this, I thought I was helping a friend out for a month or two at most. But now I just feel like I've been used, being fobbed off by someone who knows how to play the system so that I can't take her to small-claims because she's already paying back the pittance each month as she claims "it's all she can afford".
It's only been since September - can I possibly do anything via my Credit Card company since paypal won't act? I haven't received any "goods/services" as a result of this payment but I know she's used the money to buy and sell materials/products for her "business".

I'm very jaded as this is someone I've known for nearly a decade and talk to on a daily basis, or at least used to talk to as they've now blocked my contacts everywhere other than the payments being sent to me.

Any advice?

ReadingTim

The payment method is new - paypall; but the problem is old - recovering money loaned to friends and family. Unfortunately, while technology has changed, the answer has not: there's very little you can do other than write it off to experience.

Sorry if this isn't the answer you want to hear.

27col

Sounds as if you are on a loser here. She's seen you coming and is playing you and the system like a maestro. I cant think of any reason why the the card company would be interested. You were hardly paying for a service, were you?
Sorry that I cannot be of any help. Perhaps others will have more useful advice. Taking her to court would be a good idea, if only to trash her credit rating.

dancingfairy

Not sure how the whole paypal thing works, but like the above poster has said, sadly it is an age old problem
You can take your 'friend' to court. I think the cost to do this is about 45 pounds and you can do it online. Yes you will probably win and she will end up with a ccj. Your problem then becomes enforcing it.
You can employ bailiffs, you can apply for an attachement of her earnings, you can apply for a charging order on her house if she owns one, I think possibly you can apply to try and make her bankrupt etc etc.
Maybe have a look at the HMCS (her majestys court service)website and try and find the form for enforcing a judgement to have a look at the range of options which will then be available to you.
If she is telling the truth that she doesn't have any money to repay you then the most you can really hope for is a ccj against her and a very slow repayment of the debt (alongside frightening her if you go for one of the more 'militant' options). A ccj may make her life difficult. Basically it depends on what you wish to achieve and whether you are prepared to throw money at the problem or not.
What do you know about her situation in terms of housing or other assets?

df

DCFC79

Coder wrote: »

Hi,

Wasn't sure where this should go so I'm posting here for now.

Scenario:
A long-term internet friend had some financial problems, so I loaned her £hundreds. The loan was sent through paypal against my credit card. I offered the loan and she agreed to take it, sent me a money request from her "business" paypal account as a payment for goods/services and I paid from my paypal - which took the money from my credit card (new paypal account as I wanted to keep this seperate from my normal stuff). There was no real discussion about when to re-pay, but the intention was that this was a short-term thing.
Things dragged out when I started to ask when she could re-pay, past the PayPal 45day thing for disputes (I filed a dispute and they pointed out that it was past 45days). Now she's saying she can only pay me back £x a month and can't afford to re-pay me in a reasonable timescale, the amount she's talking about will take her 4yrs with zero interest just to pay back what I loaned her.
I'm none too happy and told her this. Plus each £x paypal "re-payment" incurs fee's so I'm losing out on that plus the interest my credit card is charging.

I'm not some idiot, I haven't been duped into this, I thought I was helping a friend out for a month or two at most. But now I just feel like I've been used, being fobbed off by someone who knows how to play the system so that I can't take her to small-claims because she's already paying back the pittance each month as she claims "it's all she can afford".
It's only been since September - can I possibly do anything via my Credit Card company since paypal won't act? I haven't received any "goods/services" as a result of this payment but I know she's used the money to buy and sell materials/products for her "business".

I'm very jaded as this is someone I've known for nearly a decade and talk to on a daily basis, or at least used to talk to as they've now blocked my contacts everywhere other than the payments being sent to me.

Any advice?

Welcome to MSE, I'm afraid to say you were duped, you couldnt see the potential pitfalls of what could happen. You thought you were being a helpful friend by doing this and you have been conned.

Cant see how you can do anything via the CC co as it was a payment to a friend rather than buying say a TV. You have tried the small claims route and its not worked, not sure what else you can do to claim it back.

dancingfairy

Either you've been taken for a ride or your friend has serious debt problems and is too ashamed to tell you
df

DCFC79

dancingfairy wrote: »

Either you've been taken for a ride or your friend has serious debt problems and is too ashamed to tell you
df

Im going with the later option.

OP I take it you do know what kind of business she runs ?

dancingfairy

Only other option is to try and get in touch through a mutual friend. Say you are really worried about them and their mental health and ask your former 'friend' to get in touch with you.
If you know where they work you can pop in for a chat (if it's a shop or something).
df

Wilkins

Coder wrote: »

I'm not some idiot, I haven't been duped into this, I thought I was helping a friend out for a month or two at most. But now I just feel like I've been used, being fobbed off by someone who knows how to play the system so that I can't take her to small-claims because she's already paying back the pittance each month as she claims "it's all she can afford".
It's only been since September - can I possibly do anything via my Credit Card company since paypal won't act? I haven't received any "goods/services" as a result of this payment but I know she's used the money to buy and sell materials/products for her "business".

Any advice?

Take comfort in the fact that you've become an angel investor and are doing your bit for UK PLC.

Scrootum

Have you ever met her?

Coder

I don't want to go into too many details in case she stumbles onto this thread.

What I was hanging onto was that she sent a payment request through to me, which I then paid, I didn't send the money direct to her as a friends/family transfer thing.

I know it's fallen outside PayPal's stupid rules, but I was wondering if there was any route via my C/Card company since the payment was £hundreds, for which I haven't received any goods or services in return.