Lending money to friends and relatives

catswhiskers1175

I lent £7000 to my daughter to help her consolidate her credit cards, overdraft and house rental deposit. She promised to repay me at £ 150 per month and did this for 12 months. She then moved house and dropped the repayments to £30 per month, and repayed me £2300..she stopped payments 12 months ago..Within that 12 months I asked her and she promised to resume payments..I have wrote her a letter stain the dates and amounts I lent her the money and asked her again to resume payments..she replied with a standard debt letter offering me £1.00 per month..She is in full time employment in professional position drives a 2013 car..and attends a gym regularly...how can I get my money back..

TadleyBaggie

Was anything signed at the start of the loan by your daughter?

catswhiskers1175

No...There was nothing signed.

poppasmurf_bewdley

Do you have bank records of the loan being made to her, and her payments back to you?

Any emails? Although I would think the letter offering £1 per month would be proof enough of the debt.

Sounds like you may have to take her to court, although just the threat of this may be enough to get her repaying again.

Angry_Bear

catswhiskers1175 wrote: »

I lent £7000 to my daughter to help her consolidate her credit cards, overdraft and house rental deposit. She promised to repay me at £ 150 per month and did this for 12 months. She then moved house and dropped the repayments to £30 per month, and repayed me £2300..she stopped payments 12 months ago..Within that 12 months I asked her and she promised to resume payments..I have wrote her a letter stain the dates and amounts I lent her the money and asked her again to resume payments..she replied with a standard debt letter offering me £1.00 per month..She is in full time employment in professional position drives a 2013 car..and attends a gym regularly...how can I get my money back..

The thing is, if she has already consolidated cards and overdraft and has now stopped paying, there's a very good chance she can't actually afford to repay you.
In spite of what you see about her employment and car, she may well have high debt repayments already going out. And she would be forced by a debt management company to treat you the same way as other debtors (so if she's giving a reduced amount to them, then she'd have to do the same to you).

It's unfortunate that your relationship wit your daughter appears to have broken down, but could you not try to mend fences and offer her some help? I don't mean more money, that would be a terrible idea! but maybe offer to help her work out her budget, outgoings, debt repayment etc. Of course, if she thinks you're only offering to get your money back or that you're jusging her, she'll probably be quite resistant.

If she genuinely doesn't have the money, then even taking her to court wouldn't guarantee more than the £1 she's paying you.

JReacher1

It sounds like she just doesn't want to pay you. I assume because relations have broken down.

The only option appears to be go to court but that's not going to help mend bridges.

catswhiskers1175

Maybe I'll take up her offer of £1.00 and ask for her budget plan. If she is genuine and working with a debt agency then I will know definately she's in debt again..

catswhiskers1175

Yes..There is proof both in my bank account and hers...and her setting up the standing order on the same date, as a show of good faith.

Vikipollard

If she is driving a 13 plate car which is not provided by her work and can afford a gym membership, it seems unlikely she is in any kind of debt management plan.

That doesn't mean she isn't up to her forehead in debt of course.

I'd be sending a letter before action, advising her of intent to go to the small claims court. Might shake her into doing the right thing, but be prepared to have to go through with it.

Soleil_lune

No matter who it is, never lend anyone any sum of money that you cannot comfortably afford to lose. Not even to your daughter.

I can't see this ending well. You may have to write this off I'm afraid, and tell her that you will never lend her anything again; not even a fiver. Alternatively, call Judge Rinder.

dealer_wins

Write it off, and disown her until she pays you back. Family are not deserving of the title behaving like this!