Lending some money to an acquitance

bearcat16

It depends on how much money we are talking about.

If he needs say £100 (and you have it spare) I'd probably be happy to lend a friend that and not ask for it back, if they were in some difficulty.

If it is more like £2k then probably not.

As others have said, consider it a gift, and if you get paid back then that's a bonus.

At very least, agree a timescale and monthly repayment amount.

shortcrust

I don't lend big sums of money to anyone now after having written off loans to friends who always seemed to have very good, and very emotive, reasons not to pay.

Don't do it.

PeacefulWaters

1) Don't do it. If a commercial lender won't take the risk you'd be nuts to.

2) If you're still determined to do it, document who you are, who this other person is, the amount lent (e.g. £2,000), the amount you expect to be repaid and at what intervals (e.g. £200 a calendar monthmonth) and when you expect it to be repaid in full (e.g. November 2017).

3) When payments are missed, chase them in writing. Failure to chase can imply a lack of interest in receiving the funds back.

4) Document the date and amount of each and every payment received.

But before you lend, watch two or three episodes of Judge Rinder. It will help you establish basic case law.

And finally, ask yourself how you enforce a court judgement. Send the boys round on pay day?

uberalles

As others have said, please don't lend him anything at all.

It has taken me 30 years and numerous long term interest free loans to learn this harsh lesson.

I have loaned to family, friends and acquaintances and only once can I recall the full amount being paid back. Interestingly this is the joint largest amount I loaned, £10k.

All the others I have had to chase and when this is friends and family it becomes difficult and I have fallen out with persons in each category over loans.

I am still owed by persons, not a lot in all fairness, but all the same my lessons are learned..........at long last.

Candyapple

andreauk2009 wrote: »

Hi there,
I hope you can provide genuine opinions on this matter.

I've an aquitaince, colleague of mine, who is in need of some money.
By principle I never ever lent money to anybody, but I know his story and willing to help.

What should i do to protect myself and ensure that at a certain point I'll be returned the credit?
Would a statement from him with his signature be enough?

Things will be difficult as this person is going to quit the company for a new job soon.

Thanks fur your advices.
Andrea

So a work colleague, not even a friend, is asking you for money and you bought their sob story. Did it not occur to you why they didn't ask their own family/friends first?

The cynic in me says that he might have had this planned all along - ask you for money knowing that he was leaving and that would make it 10 times harder for you to get your money back in the eventual hope that you would give up in your efforts of trying to be repaid.

There is no way to get your money back. No amount of signatures from him, promises, written statements saying 'I owe you xx' or words to that effect. If you lent him the money and he didn't pay you back, you are left with the option of throwing more money down the drain in launching a court claim and then even if he loses the case, if he genuinely has no money, you can't get blood out of a stone. You would be left with an empty judgement and unless you shelled out yet more money on trying to make him pay, it is pointless.

Just don't do it in the first place.

Herzlos

andreauk2009 wrote: »

What should i do to protect myself and ensure that at a certain point I'll be returned the credit?

You can't. If they don't pay up, you'd have a real uphill struggle to get anything back.

Treat it as a gift, that they might pay back, or buy something from that for that value, which you'll sell back to them in installments.

Clive_Woody

About the only thing I can think of is securing the loan against his home (assuming he is a home owner - and that this is legally allowed). This would of course incur considerable legal costs and the agreement of his mortgage lender for a second charge....if it were possible at all.

Ilona

Same as everyone else. Don't lend them money. Give it if you can spare it, otherwise stick to your rule of NOT lending.
Ilona

pjcox2005

I'm just asking a question so don't know the answer, but would the loan be more readily enforceable if secured against a specific asset in writing.


Say a note in the document setting out the loan, that a default would mean the car reg xxx would be available for sale to recover the loan or valuable jewellery that they wouldn't want to lose?


It is a mine field lending to others, and regularly causes issues, but I still see benefit in helping others where you can. Amazing what can happen if people have opportunities/support.

Arleen

pjcox2005 wrote: »

I'm just asking a question so don't know the answer, but would the loan be more readily enforceable if secured against a specific asset in writing.

In short: nope. And if you need your loan to a friend to be secured, don't led them.