settling loan in Foreign currency

notforsale

Hi All,
I borrowed money from my friend( who lives in Switzerland) for personal reasons equivalent of 40000 GBP about 15 years ago. I have settled this amount in full last year. He is asking for another 30000 GBP to be paid to settle this amount in full.
There is no interst involved no written agreement signed. but his argument is that, when he gave the 40000 GBP it was equivalent to 84000 Swiss frac ( CHF). Now when I am returning this amount obviously the GBP had dropped its value. which require me to pay another 30000 GBP to settle the amount in full.

As I mentioned to him, this is not what we have agreed I have told them that I can only pay what I received. Also asking another 75% more on the amount of loan is ridiculous.

Any advice or any one had similar experience before please let me know?
I have just paid the loan in full so obviously i Have no money at present this is shocking.

thanks
1GBP to CHF
31 Dec 2004 2.275563
31 Dec 2005 2.262491
31 Dec 2006 2.307692
31 Dec 2007 2.401762
31 Dec 2008 2.000966
31 Dec 2009 1.694605
31 Dec 2010 1.610585
31 Dec 2011 1.421876
31 Dec 2012 1.486504
31 Dec 2013 1.449511
31 Dec 2014 1.506557
31 Dec 2015 1.469968
31 Dec 2016 1.335299
31 Dec 2017 1.268122
31 Dec 2018 1.305428
21 May 2019 1.303562

Gaz83

This is messy, and I suspect you'll need a lawyer who specialises in this kind of thing.

What did your loan agreement say? I assume you had one. Did it say he was lending the money in Swiss Francs, or in GBP?

I'm guessing as you say the money was 'equivalent' to £40,000 GBP you borrowed it in Swiss Francs?

foxy-stoat

Never had this but if I lent someone money it would be in my currency - I would expect the same amount back. If you changed his money into pounds sterling that is no concern of him, he should be getting the same amount back - obviously if the pound went the other way you wouldn't of needed to pay him as much sterling so you would win.

Obviously if he lend you 40 large 15 years ago with zero interest then he should of expected it not to come back so anything you paid him would be a bonus.

Lending money to friends rarely works, this is another reason why.

Good lucks

Gaz83

foxy-stoat wrote: »

Never had this but if I lent someone money it would be in my currency - I would expect the same amount back. If you changed his money into pounds sterling that is no concern of him, he should be getting the same amount back - obviously if the pound went the other way you wouldn't of needed to pay him as much sterling so you would win.

Yes, this is the crux of the matter.

If the loan agreement says that he'll lend you 84,000 Swiss Francs and you will repay 84,000 Swiss Francs, then you owe him the money.

If the loan agreement says he'll loan you £40,000 and you will repay him £40,000 then the loan is settled.

This is just my two cents' worth, I'd have a look at the loan agreement first.

Bermonia

I would tend to agree with your friend... they lent you 84,000CHF of their money, they have not asked for interest as such it would only be fair to return them to the position they would’ve been in if not lent you the money.

As already advised seek proper legal advice as this could get messy, however from past dealing would expect courts to be on the side of your friend as he has acted in good faith.

Socajam

notforsale wrote: »

Hi All,
I borrowed money from my friend( who lives in Switzerland) for personal reasons equivalent of 40000 GBP about 15 years ago. I have settled this amount in full last year. He is asking for another 30000 GBP to be paid to settle this amount in full.
There is no interst involved no written agreement signed. but his argument is that, when he gave the 40000 GBP it was equivalent to 84000 Swiss frac ( CHF). Now when I am returning this amount obviously the GBP had dropped its value. which require me to pay another 30000 GBP to settle the amount in full.

As I mentioned to him, this is not what we have agreed I have told them that I can only pay what I received. Also asking another 75% more on the amount of loan is ridiculous.

Any advice or any one had similar experience before please let me know?
I have just paid the loan in full so obviously i Have no money at present this is shocking.

thanks
1GBP to CHF
31 Dec 2004 2.275563
31 Dec 2005 2.262491
31 Dec 2006 2.307692
31 Dec 2007 2.401762
31 Dec 2008 2.000966
31 Dec 2009 1.694605
31 Dec 2010 1.610585
31 Dec 2011 1.421876
31 Dec 2012 1.486504
31 Dec 2013 1.449511
31 Dec 2014 1.506557
31 Dec 2015 1.469968
31 Dec 2016 1.335299
31 Dec 2017 1.268122
31 Dec 2018 1.305428
21 May 2019 1.303562

I think your friend is being totally selfish in the sense that if I lent someone that kind of money over the years and I noticed the wide fluctuation in currency, I would have brought it to your attention by alerting you to the fact that the currency is being devalued and when you are ready to repay me I would be receiving less money.
Frankly, this might be the end of your friendship because I am not sure that I would give another 30,000, maybe for good measure another 10,000 if and when I could afford it.
Currency devaluation is a fact of life, something we have no control over.
As "foxy-stoat" pointed out, if his currency was higher, would be pony up and take less money from you because you have overpaid him because of currency inflation. This works too ways something your friend does not seem to grasp.

dealer_wins

Yet another reason to never lend or borrow money from friends and family. And this has got to be the strangest one yet!

If you want my opinion, you need to pay him back the extra amount otherwise your generous friend who lent you his money will be well out of pocket, but im no Judge Rinder lol

Bermonia

Seriously Socajam? Hey perhaps you’re right, perhaps his friend WAS being selfish lending him such a large amount of their money with no fees or interest, despite being deprived of those funds to earn any interest from... OP try being as half a decent friend to him and pay up what’s owed, or spend loads on legal costs and fees and then pay up

System

Nothing in writing, such a claim is not enforceable. Would he have refunded you money if the value of the pound had rocketed? Somehow I doubt it.

dealer_wins

Tarambor wrote: »

Nothing in writing, such a claim is not enforceable. Would he have refunded you money if the value of the pound had rocketed? Somehow I doubt it.

The OP would have probably paid the Swiz value back lol

MEM62

notforsale wrote: »

He is asking for another 30000 GBP to be paid to settle this amount in full.
There is no interst involved no written agreement signed. but his argument is that, when he gave the 40000 GBP it was equivalent to 84000 Swiss frac ( CHF). Now when I am returning this amount obviously the GBP had dropped its value. which require me to pay another 30000 GBP to settle the amount in full.

Hmmmm..... So your friend is asking you to pay back what he lent you and only what he lent you as he has been good enough to let you have this loan interest free. Despite the fact that he has shown you great kindness in giving you this interest free loan you now expect him to assume the exchange rate loss so that you are not out of pocket.

A friend does you a huge favour and you are trying to shaft him. Personally, I think your moral compass is in need of some considerable adjustment.