Debt owed by friend - not repaid

Bluebell_Mel

Hi

I lent a friend a large sum of money in 2002 on the condition that when they sold their house this was repaid, plus interest that I would've gotten if I'd kept it in the bank. Was given a timeframe of a few months.

They sold the house and never repaid it, and very shortly after moved halfway round the world (Australia). I went to visit twice and asked and got fobbed off. Then tried for a number of years to talk about getting repaid, but always got excuses and then contact got cut off.

Have now re-established a friendship of sorts, but not quite sure how to approach. I know from FB that she earns a good wage, can afford a car that I would never be able to (brand new sports car, has bought a house and says she earns a good wage) but has made no effort to say 'hey, I know I owe you, thanks for helping out, here you go..........or even, I'll pay you back in instalments'.

It sounds like my 'friend' is looking at coming back to the UK and I'm trying to work out how best to get my money back and think my best chance is when she is here.

Worried that she will do the same again and cut me off if I ask on email Have sent a few messages, just saying 'hi, how are you' and then don't get a response or if I ask a question about something else, get ignored, but will then hear randomly from her or get a response.

Is there a time limit on loans? I have the original email trail about the loan and repaying. What would you suggest is my best course of action?

jonesMUFCforever

Unless the loan was secured (very unlikely otherwise you would have been repaid) the loan is now statute barred.
(6 years in England,Wales - 5 in Scotland)

sourcrates

Look around this forum there are lots of cases of people lending money to so called friends, who, yes you’ve guessed it, never repaid them.

Even with written credit contracts people can’t always repay there debts, so simply giving someone a “large amount of money” on the promise it will be repaid, is not going to end well for you.

Anyway, as said above, time has passed now, although the limitations act only applies to simple contract debts, you never had a written contract anyway, so in law the money was a gift, you have next to no chance of ever seeing it again, unless her conscience gets the better of her that is.

Think of it as a life lesson, and don’t be so trusting in future.

TrickyDicky101

sourcrates wrote: »

Look around this forum there are lots of cases of people lending money to so called friends, who, yes you’ve guessed it, never repaid them.

Even with written credit contracts people can’t always repay there debts, so simply giving someone a “large amount of money” on the promise it will be repaid, is not going to end well for you.

Anyway, as said above, time has passed now, although the limitations act only applies to simple contract debts, you never had a written contract anyway, so in law the money was a gift, you have next to no chance of ever seeing it again, unless her conscience gets the better of her that is.

Think of it as a life lesson, and don’t be so trusting in future.

What do you base that on? Where (in law) does it say a contract has to be written?

kerri_gt

Sadly if she has made no effort in the past 16 years to even discuss the loan after she got her hands on the money, even it it wasn't statute barred then it would seem she has no intention of paying you back - ever. Personally I wouldn't have wasted more money travelling out to see her.

Accept the money is gone, and either continue whatever friendship you have and if she asks for any more money refuse. Or (and I hazard a guess this is what most people would do) move on from the friendship and cut communication. Even if there was a valid reason why she hasn't as yet paid you back (social media is great at portraying an image - she might not be on the megabucks you think) a true friend would have had that discussion with you.

Destabilising

Unfortunately, this is a case where I think it's highly unlikely you'll get it back. One thing I've always been told is "Only lend what you can afford to lose".

Herzlos

Legally you've got no way to get it back - it's well beyond statute barred and you've presumably got no contract.

If you can't convince / shame her into getting the money back then you've pretty much had it, beyond stealing stuff to the value (and it would be stealing, as you'd have no legal right to repossess)

-taff

You're never going to get your money back.

You could ask her for a loan though....

System

TrickyDicky101 wrote: »

What do you base that on? Where (in law) does it say a contract has to be written?

In order for a loan to be enforceable it has to state the terms of the loan and include the amount lent, repayment terms including monthly repayments and end date, any interest if applicable, what that interest amounts to and any penalties.

Good luck proving you did that using a verbal contract.

TrickyDicky101

Tarambor wrote: »

In order for a loan to be enforceable it has to state the terms of the loan and include the amount lent, repayment terms including monthly repayments and end date, any interest if applicable, what that interest amounts to and any penalties.

Good luck proving you did that using a verbal contract.

Please provide your evidence for that attestation.

sourcrates

TrickyDicky101 wrote: »

Please provide your evidence for that attestation.

Although a loan between friends would not be a regulated agreement, it would be extreamly difficult, not to say costly, to prove liability in court.

Consumer credit act 1974. Sec 77-79. Covers credit agreements.

https://www.legislation.gov.uk/ukpga/1974/39/part/II

Without a valid copy of a compliant credit agreement the debt is unenforceable in court.

I have yet to see a copy of a credit agreement on any other medium except paper.