Uncle refuses to repay debt.

KMK

My friend, a pensioner, lent £20,000 to his elderly uncle because of a family crisis.This was over 3 years ago.Since then my friend has received none of the money back in spite of calling the uncle, visiting him and trying to get his money back.Needless to say he needs the money himself but the uncle promises over and over again to return the money but never does.Apparently he has properties he could sell but insists that he cannot get his hands on ready cash to repay my friend.

My friend is at his wits end as there is no documentation.He also realizes how foolish and gullible he was to lend such a large amount but he thought his uncle would keep his word and repay within 3 months.

Has anyone else who has been in this situation found a way of getting their money back? I am tempted to advise my friend to just accept he will never be repaid, because he is really stressed about it and it is affecting his health.Should he just put it down to experience and move on without his money?

DUTR

Put it down to experience.

BigAunty

Does the Uncle have any assets, a home owner, in employment? Were there any witnesses to this verbal agreement? They say a verbal agreement is worth the paper it's written on....

Take advice from a solicitor as to whether there is any realistic prospect of getting a court order made against them and any chance of it being enforced if it is found in your friend's favour.

I don't know how it works for larger sums, but for smaller cases in the Small Claims court, many claimants don't see any of the money when they win the judgement. It's quite easy for some defendents to get out of paying because it's too hard to enforce. The claimant just simply loses even more money on legal fees.

For example, the defendents on benefits or not in employment so they only have to pay a fiver a week, stop paying this and then it costs the claimant even more money to return back to court. They move properties and the paperwork to serve the claim or try to enforce a judgement can't be served. They have an attachment of earnings (the payment is taken directly out of their wages) but simply change employers and that's the end of the AOE.

pinkshoes

He has two options.

1. Write the debt off.

2. Send a letter before action asking him to pay a monthly amount by direct debit, with the final lump sum due in 6 month (give a date).

He should also get some written evidence that he is owed the money should his uncle die!

burnoutbabe

I'd get some proof the money was paid and that the debt was acknowledged. And then wait until the man dies and then claim it then.

Fluffi

How did your friend lend your uncle the money? Cash, cheque, bank transfer or paid for some service on your Uncle's behalf? Even if there is no formal loan/debt agreement between the two parties that might be a start, maybe?

SeduLOUs

If there's no evidence in writing of the debt then it's not looking good. It's going to look even more like it was a 'gift' in a court considering over 3 years have passed without taking any action or sending any formal letters.

Your friend needs to get some proof in writing - it could be an email promising to pay or possibly text messages and the total amount should be included. A letter on paper would be the ideal, but any evidence friend can get will be better than nothing.

Errata

KMK wrote: »

My friend, a pensioner, lent £20,000 to his elderly uncle because of a family crisis.This was over 3 years ago.Since then my friend has received none of the money back in spite of calling the uncle, visiting him and trying to get his money back.Needless to say he needs the money himself but the uncle promises over and over again to return the money but never does.Apparently he has properties he could sell but insists that he cannot get his hands on ready cash to repay my friend.

It sounds like all of this is something your friend has told you. It may or may not be the truth.