Borrowing from a friend

BJV

Ok if the difference was a few pounds ok I would take it on face value but another £30,000. ????? I would want to see statements. I agree that they should not end up out of pocket but equally you should not be funding their lifestyle.

So if your "figures where right" you have borrowed 25k and will end up paying back £60K. Even credit cards would not cost that much.

If they have done nothing wrong they will have nothing to hide and will be fine showing you.

hawkeye9999

Justlookin wrote: »

Update. It's not 10k it's now 30k I still owe.
Oral agreement to repay.
Frequently told credit had been cycled onto interest free cards.

.

Is that if you pay it off today, or will they continue to have interested added.

Justlookin_2

That would be the amount today. In the past I've been advised the sum lent had been moved to low or no interest. I can't say with any certainty what the position will be in a year / five years.

I think the reason for posting was to understand the legality. For example they couldn't insist on immediate repayment could they. Or force me into a sale of assets. Morally I feel if I'm making the payments on what is now essentially money over and above what was lent to me then I'm ok. We have no formal agreement but I'm at least paying the money.

TrustyOven

Might be time to cut them out of your friends list.

How they financed the lending of the money to you should not concern you. It's an implementation detail on their side. They could have used their savings, or sold some valuables or worked overtime. It shouldn't matter.
If you can prove that they lent you 25k and you paid back the full amount plus extra, then I think any more money they demand is possibly extortion and I wouldn't pay any more.

I'm not sure what the legal view is, however. I cannot believe that a court would side with them, but I suspect there are too many fruity-loops laws out there and the court might take their side.

You could also see about speaking to Citizens Advice Beurau? Hopefully before long, someone with a bit more legal knowledge can reply. You could also see about searching for the actual laws and see if there is anything in there on this topic.

DUTR

Justlookin wrote: »

That would be the amount today. In the past I've been advised the sum lent had been moved to low or no interest. I can't say with any certainty what the position will be in a year / five years.

I think the reason for posting was to understand the legality. For example they couldn't insist on immediate repayment could they. Or force me into a sale of assets. Morally I feel if I'm making the payments on what is now essentially money over and above what was lent to me then I'm ok. We have no formal agreement but I'm at least paying the money.

It sounds like this friend is was an ex ?
Was the money loaned in one big lump sum?
Both parties should be keeping a record of what was loaned and paid. The past is the past you both should draw up an agreement and then stick to it.

Justlookin_2

No not an ex. When I was struggling they kept handing me cash. I was in an IVA. Finances a state. I was telling anybody who would listen. This friend kept 'helping' and now I'm in a worse position than I was then.

They meant well and at the time I was so relieved to have some money. But it was a bad move for both of us

-taff

If you have no formal agreement, and there is no proof of this debt, and you have paid off more than you originally borrowed, I'd be tempted to tell the friend take a running jump.

Ask for proof of how this debt has escalated, and insist on statements, bank account statements etc, to see exactly what's owing.

If they hve truly beome 60 grand out of pcoket from loaning you 25, then morally, pay it. Legally though, you don't have to pay anything.

societys_child

Never lend money to a "friend". They will at some point screw you over. Here's the proof.

Justlookin_2

I don't think either of us are 'screwing' the other over

27cool

Well. If you don't think that you are being screwed over, then you are pretty naive. How they funded the money that lent you is their business. Not yours.
If you knew about the extortionate interest they were paying then you were no sort of a friend to let them help you.
If you didn't know, then they were extremely naive to let themselves get lumbered with borrowing costs of that magnitude.