Loaned a friend money *face plant*

dave88uk

Ok, Ok, I loaned a friend some money and as it always does .. it's gone Pete Tong! The loan is in 2 parts:

1 x £2,000 (£1,600 outstanding)
1 x £4,000 (I'm a guarantor with Amigo)

I have legal contracts in place .. so that's a good thing. He's well and truly behind on the £1,600 (by 12 months) and both me and my wife are getting frustrated.

We're starting to get worried that he might fall foul of all his other creditors (that we didn't know about at the time...) including his mortgage.

Our thoughts are that we might offer the repay the balance with Amigo (as we're already liable) and begin a new loan contract. I think this as he is up to date with his Amigo loan. He's the kind of person that is too thick to cancel Direct Debits/standing orders.

2 questions:

- Can I charge him interest on the loan? Research suggests I can
- Can I secure the loan against his only asset - the house?

You don't all need to tell me how silly I've been lending money to friends .. I know. But - it was to pay for his Dads funeral (or I thought that it was - that undertaker is now a creditor!)

foxtrotoscar_2

From experience I'd walk away unless the borrower has assets that will cover the debt.

dresdendave

If he is paying the Amigo loan then I would tread carefully about pushing him on the smaller loan. If and when Amigo are paid off then perhaps try making an arrangement regarding the smaller loan. If however, he won't cooperate, taking the legal route will probably cost you far more than you will ever actually recover.


At least you do have seemed the lesson, never lend to friends or family, sadly at some personal expense.

SailorSam

I've loaned money out in the past and never seen it again.
It was an expensive lesson, but i've learned never to do it again.

andyfromotley

keep scrum on the amigo loan and hope that it gets paid off.

swallow the other loan for now and then when the amigo loan is paid off say thanks very much, now about this other loan that you haven't yet repaid!!

Sorry i know its not what you came here for........but what were you thinking of??!!
;-)

davidsuffolk

I sympathize. I had a friend desperate for money who wanted me to act as guarantor on one of these high interest loans. I could see so many problems ahead I lent her £1K myself on the basis the worst that could happen was I would lose the money (which was how it turned out) but at least I limited my own risk. Sad but there you go. I've been in the same position myself in the past so at least I helped her (and it was a genuine need not fanciful spending)

paddyrg

Maybe see if you can get a fiver a week against the £1600? It's not the fiver that's important, it's the showing the continuation of the obligation. If it did ever come to court it might be a handy way to show there was no question about the money still being owed (especially without any kind of paperwork)

DCFC79

I'd keep on side and get the amigo loan paid off.

joeblags

I have a niggle inside wanting to say " its your own fault " only borrow what you can afford to loose. why do so many people get in this situation?

Thrugelmir

dave88uk wrote: »

I have legal contracts in place ..

What clauses have had written that specifically cover default?

Dr._Shoe

I never loan money out to people. For family and close friends i would give it (if I had it) but never loan, it leads to too many arguments and ill feeling.

Over the years I have given my brother many thousands of pounds but he's done the same for me. My Mum has also "loaned" money to both of us but we have helped her out too. We don't keep track of who's had what, we just do it on nod and a wink.