If a lender has no signed agreement from a customer, is the debt enforceable?

timbo58

If your friend has spent the loan and doesn't make any repayments then the loans company can ask for immediate repayment.

PeacefulWaters

timbo58 wrote: »

If your friend has spent the loan and doesn't make any repayments then the loans company can ask for immediate repayment.

They can ask for the moon, the stars and Brian Cox's backside if they want.

If the money isn't there it isn't going to be repaid.

I think you'll also find your post is incorrect anyway.

timbo58

Think or know my post is incorrect?

Either he has a legal agreement which will no doubt state immediate repayment is required or he doesn't which means the money isn't his and therefore immediately repayable anyway.

If this is incorrect please let us all know what the correct legal position is with case law references of course, as that is what the OP has stated he wants not just opinion without something to back it up.

Stating simply ' if he hasn't got the money........' Isn't case law or no one would ever repay loans or lend!

It might take longer for the lender to get their money back but it WILL be repaid- the reason I think you'll find YOUR post is the one lacking.

meer53

Get your friend to call them again. You may get to speak to someone who actually knows whats going on. Either way, you owe the bank £16k so i can't really see why you're asking all these silly questions.

Gaz83

timbo58 wrote: »

Stating simply ' if he hasn't got the money........' Isn't case law or no one would ever repay loans or lend!

It's not an invalid point, though. Debts are frequently written off because the debtor does not have the assets to repay the creditor. Even a court can't force blood out of a stone.

timbo58

That's a fair point Gaz however it isn't case law.
It's an exceptional judge,net made by either the lender or the court.

I am not sure if the £16k would have been lent as an unsecured loan in any case.

Frankly, given the fact very few people on this thread, myself included, have given no solid legal advice, I would reccomended the OPs good friend seek proper legal advice sooner rather than later.

jonesMUFCforever

It IS a legal fact that you do not have to sign anything to make a contract legally binding.
In this instance the agreement could have been signed digitally and perfectly legally.

redpete

Tom_R wrote: »

He's a good guy. He doesn't want to break any laws or jeopardize his immaculate credit rating and so on.

...but would like to know if he can avoid paying back the money he borrowed. Doesn't fit my definition of "a good guy".

PeacefulWaters

timbo58 wrote: »

Think or know my post is incorrect?

The whole debt is not repayable in full if you miss a payment. So your "the loans company can ask for immediate repayment" is incorrect.

Either he has a legal agreement which will no doubt state immediate repayment is required or he doesn't which means the money isn't his and therefore immediately repayable anyway.

Or there is a loan agreement that states when monthly payments are due. As opposed to immediate repayment of the full balance.

If this is incorrect please let us all know what the correct legal position is with case law references of course, as that is what the OP has stated he wants not just opinion without something to back it up.

Balls to that. Others can search engine away if they wish.

Stating simply ' if he hasn't got the money........' Isn't case law or no one would ever repay loans or lend!

Except it is that simple and lenders / courts know it. But most people are honest and repay what's due.

timbo58

Unless you have seen the loans agreement you cannot state whether it has a clause in it that covers a requirement for immediate repayment if payments are missed.

Neither can I, however it is a very commonly used clause in all types of loan or credit agreement.

Once again, the OP is asking for case law etc, opinions however valid are not required.