Can I Charge Interest on a Personal Loan

jonesMUFCforever

...........If it was me you lent to I would ignore any e-mails - what do you do then?
Whatever you do it is a long shot.
The fact that you believe he has a car (on finance?) a caravan and holidays abroad - what does that prove other than he spends what he earns (and probably a lot more).


Good luck with trying to recoup your money - my opinion is that you will not get very far - just don't throw any more money chasing this BAD debt.

Gaz83

Axel wrote: »

I believe he does have assets, car, caravan, holidays abroad etc. and thanks for the clarification on verbal agreements (although there is much more than this) and also on agreed interest payments between private individuals. I am going to send an email requesting a payment proposal from him including a nominal simple interest rate of 5% per annum. I believe he may well respond to the email with a proposal he has no intention of sticking to, but his written response will acknowledge the debt and also constitute a private agreement on the interest. I believe this would then be enforceable.


Axel

Surely none of this is relevant, though, unless you can prove he received the funds that were imminent to him. That's the conditions you agreed to when you provided him with the loan. As mentioned above, I'm surprised a solicitor signed off on those terms.

longtermplanner

Gaz83 wrote: »

Surely none of this is relevant, though, unless you can prove he received the funds that were imminent to him. That's the conditions you agreed to when you provided him with the loan.

Well without sight of the agreement it's impossible to be sure, but unless the agreement specified that the loan was NOT repayable if the funds expected were not received, it is still a valid loan just without a timescale for repayment.

I agree that the way to go now is a request for repayment. IF he ignores this or then doesn't keep up with the arrangement he suggests, then you need to send a formal demand for repayment. Put LETTER BEFORE COURT ACTION at the top of your letter, send it recorded delivery, say that unless he either repays the money or keeps to acceptable arrangement you will sue, and give him 21 days to reply.

Details for making a money claim in Scotland are here http://www.scotcourts.gov.uk/taking-action/frequently-asked-questions/small-claims

Gaz83

longtermplanner wrote: »

Well without sight of the agreement it's impossible to be sure, but unless the agreement specified that the loan was NOT repayable if the funds expected were not received, it is still a valid loan just without a timescale for repayment.

I agree that the way to go now is a request for repayment. IF he ignores this or then doesn't keep up with the arrangement he suggests, then you need to send a formal demand for repayment. Put LETTER BEFORE COURT ACTION at the top of your letter, send it recorded delivery, say that unless he either repays the money or keeps to acceptable arrangement you will sue, and give him 21 days to reply.

Details for making a money claim in Scotland are here http://www.scotcourts.gov.uk/taking-action/frequently-asked-questions/small-claims

The OP has already posted that the wording of the loan agreement was that "the money would be repaid as soon as the funds that were due imminently were received".

Unless the OP can prove that these funds were repaid, then I really don't see how a court would even take a look at this.

Axel

Gaz83 wrote: »

The OP has already posted that the wording of the loan agreement was that "the money would be repaid as soon as the funds that were due imminently were received".

Unless the OP can prove that these funds were repaid, then I really don't see how a court would even take a look at this.

I think you away off on the wrong track here. According to the dictionary the definition of imminent is "likely to occur at any moment" This was the basis of the loan agreement and the reason that interest on the loan and repayment plans were not even discussed. After more than six years no reasonable person could take the view that this means the loan could be outstanding indefinitely and there is no reason for the burden of proof to be on me regarding receipt of these "imminent" and probably fictitious funds.


Axel

PeacefulWaters

Axel, are you expecting to see the money again?