Small Claims Court

nickdj

Good morning,

Apologies if this is the wrong section for this post. I couldn't find one which fits my query.

14 months ago I leant a friend £500 for a personal reason. It was aimed to help her get through a tough time where she was considering suicide. I have been polite and amicable about the situation and tried to keep chasing for repayment down to a minimum. Each time I was given an excuse why it couldn't be paid. Originally the repayment was to be made within 2 months but the goal post kept being pushed back.

I've just had a message off her saying that "I won't get any money from her" due to a rumour which I am still in the dark about. So this has left me with the only option but to go to the small claims court if I want the money back.

I can evidence the payment to her, I have messages on my phone, and I cannot see how she could dispute not owing the money. I believe I have to send her a letter of intention and give her time to respond. After this I'm not too sure what happens next and the costs involved.

Can anyone give me guidance on my best course of action? Should I claim the court costs and interest back? Is there anything else I need to consider?

Kindest regards,

Nick

Browntoa

What's the chance of her actually having £500 (or more with court costs) to pay even if you make a mcol claim ?

nickdj

Thank you for the reply.

She lives around the corner and does have an income. I'm not sure if she is working but she's got a 'job on the side' which will probably come out in court. Even if she repays £50 per month that's better than nothing. She has children, two of which are working. The point is more that I want some kind of repayment which she has to adhere to.

Does this help?

PeacefulWaters

Browntoa wrote: »

What's the chance of her actually having £500 (or more with court costs) to pay even if you make a mcol claim ?

The point above is very relevant.

You can go to court. (Moneyclaim online?). Paying whatever fees are needed.

Get a judgement against her. Assuming the court accepts your messages as being enforceable.

Then she can still not pay.

What will you do then?

For what it's worth, I'd write it off and have nothing to do with her again.

Aquamania

PeacefulWaters wrote: »

...
You can go to court. (Moneyclaim online?). Paying whatever fees are needed.

Get a judgement against her. Assuming the court accepts your messages as being enforceable.

Then she can still not pay.

What will you do then?...

https://www.gov.uk/make-court-claim-for-money/enforce-a-judgment

Aquamania

nickdj wrote: »

...
Can anyone give me guidance on my best course of action? Should I claim the court costs and interest back? Is there anything else I need to consider?

Kindest regards,

Nick

As others have indicated, mcol is the cheapest and probably easiest way
https://www.moneyclaim.gov.uk/web/mcol/welcome

The court costs will be added to your claim (if you are successful, and the judge does not rule otherwise), but you do need to pay them yourself upfront (in case you don't win)

You can add interest if you wish (8% pa), payable from the time the money was overdue.
i.e. 2 months after you lent it.
- although this may be complicated if you agreed then to a later repayment date.

Read all about how to make a claim, costs, interest etc here
https://www.gov.uk/make-court-claim-for-money

nickdj

Thank you for all the help so far.

To be clear, a letter of intention is required first. Then I can make a claim online.

I can evidence the bank transfer and I can evidence messages where I've asked for repayment and been advised I'd get it as soon as possible.
I can evidence the message where she says I'll not get the money. (I don't know if text messages can be used to support my claim)

I feel I would regret not doing anything. At least if I try I'll get a something legal which says she owes me money. If then I only get a small payment per month or she doesn't keep up payments, I can decide what to do. I'm not bothered about interest but should clain the court costs back

Aquamania

nickdj wrote: »

Thank you for all the help so far.

To be clear, a letter of intention is required first. Then I can make a claim online.

I can evidence the bank transfer and I can evidence messages where I've asked for repayment and been advised I'd get it as soon as possible.
I can evidence the message where she says I'll not get the money. (I don't know if text messages can be used to support my claim)

I feel I would regret not doing anything. At least if I try I'll get a something legal which says she owes me money. If then I only get a small payment per month or she doesn't keep up payments, I can decide what to do. I'm not bothered about interest but should clain the court costs back

Yes a letter before action is certainly a good approach.
(The court will need to see that you have turned to them only as a last resort. If not, that could be a reason for the judge not to allow your court costs even if you win the claim)

You will need to prove the money was intended as a loan at the time, and that the other party accepted it as such, rather than later attempts to recover it.

Once you have proven the money was given as a loan, the ongoing attempts to recoiver it will help you. Text messages may be used in evidence, but it may be contested that they were never received (e.g. proof of sending, wrong recipient phone number used, receiving phone not regularly turned on, etc)
A response to a text message would obviously prove receipt.

If you have received any partial repayment, or any communication that indicates an offer to repay but at a later date (i.e "been advised I'd get it as soon as possible"), that could be construed by the court that the other party accepts it was indeed a loan agreement.

PeacefulWaters

I don't know if text messages can be used to support my claim

Judge Rinder allows them as evidence.

nickdj

Excellent. Texts were sent, received, and responded to. The first a year ago specifically says I leant her £500 and was expecting it back. Her responses stated she would pay it back asap. So as far as I can see there are no grounds to dispute the loan, especially as she sent a message today saying I won't be repaid.

I'll get the letter printed next week, deliver it by hand (photo myself delivering it if I have to), and then proceed online to make the claim. Think that should cover everything.

Thanks again.

System

PeacefulWaters wrote: »

Get a judgement against her. Assuming the court accepts your messages as being enforceable.

Then she can still not pay.

What will you do then?

For what it's worth, I'd write it off and have nothing to do with her again.

Once upon a time you could let it rack up to £750 with interest then bankrupt them. It would be worth it even if I never saw another penny just for the satisfaction of knowing they'd not got off unscathed. Sadly that's now gone up to £5000.