Money Claim from HM Courts & Tribunals

shellzebs

Good Afternoon,
I'm just after a bit of advice.
In October 2018 after suddenly losing my job, a friend loaned me £3500 to tide me over.
We agreed repayments would start in January and I paid her back £150 per month. Unfortunately we fell out however of course I continued with the repayments. In November 2019, I asked to have 2 months off over Christmas as money was very tight - she didn't reply until Christmas Eve but begrudgingly agreed. I then said I would make up the £300 I missed over the next few months but didn't confirm exactly when - I didn't want to promise that it would be in January as I had a bit of a health scare and I didn't want to leave myself short if I had to go to the hospital for more appointments - as it was I did have to go back. I made sure I paid her the £150 for January on 24th January (a week early). She then emailed me saying she required me to pay an additional £50 before 31 January however I could not do this. Before I even had a chance to email her back, I received a Money Claim that she has made for the remainder of the balance.
My questions are -
Is the court likely to accept that I should just continue paying her £150 per month as I have been doing already?
Can she do this when I have been making the repayments? Granted I didn't reply to a couple of her emails last month but my mind was understandably elsewhere and I still made sure I made the payment.
Looking at the claim, it looks like I'm going to end up with a CCJ regardless as I don't dispute that I owe her money and never have done.
Any advice would be great,
Thanks!

shellzebs

Just to add - she didn't send me a 'Letter before Action' either, just an email asking to pay an additional £50.

Thanks

sourcrates

Its always a bad idea to borrow money from a friend, it seldom ends well.
As this will most likely now proceed to judgement, make your budget show a disposable income amount of £1 a month, then she can eat cake can`t she.

shellzebs

Agreed! I wouldn't ever do it again but I was in a real tight spot at the time. It's a shame since I've never ignored her or the debt and have made all other payments a week early, including January's!

sourcrates

shellzebs wrote: »

Agreed! I wouldn't ever do it again but I was in a real tight spot at the time. It's a shame since I've never ignored her or the debt and have made all other payments a week early, including January's!

I don`t suppose there is any written evidence of this loan at all is there ?
What evidence is she relying on in court ?

You can`t just make a demand for money without providing evidence of some kind.

shellzebs

Yes she has emails and Whatsapp messages - and I've got all of that as well, showing me as willing to work it out and I've got a record of all my payments back to her. I'm going to suggest the repayments are £150 and if she declines this, the court will decide based on my income and expenditure.

Just_Di

shellzebs wrote: »

a friend loaned me £3500 to tide me over.
We agreed repayments would start in January and I paid her back £150 per month.

Was this "agreement" in writing?

I would think a DJ would need to see evidence that the Claimant has/had a contract and the legal right to claim this debt before giving you a CCJ.

Otherwise it's just a 'he said, she said' situation.

Di

shellzebs

Yes, it's all in emails and we had a spreadsheet etc. I just didn't reply to an email for a week which is what has prompted her to go down this route, even though I made a payment and have been in constant contact.

monetxchange

Have you tried emailing her directly, outlining your intentions for payments going forward? Maybe attach a direct debit confirmation? It may be you can avoid this going to court if she gives you another chance on this.

Make sure you apologise for the lack of communication when you were ill, but avoid the implication that that is somehow she has to be patient with. I'm sorry to hear it's been rough for you, but it's your responsibility to make serious efforts pay her back as you would any other creditor. At the end of the day, all she wants is her money either way. Definitely never borrow or lend to a friend again. It's killed off so many friendships needlessly.

shellzebs

This is what I've said to her today:

I didn't agree with the revised payment plan as I had mentioned that I would pay back the additional payments as soon as I was financially able to and I wasn't able to do so this month.

As I've said so many times before, it's never been my intention to not pay you, or to not make extra payments. I was just hoping for a bit of compassion, given you know why my circumstances have been in such a bad financial state, I thought you would be more understanding and know that I would increase the payments as soon as I could afford to.

Since you've now set up the Money Claim, without a 'Letter Before Action' and I've made January's payment and therefore not ignoring the debt, I'll just go through the Government portal from now on rather than trying to explain anything to you.

Please note that if I submit my financial details to the government, the payments you receive may be significantly reduced as I'm not paying off other debts at the moment to ensure you are receiving your payments.

I was emailing her directly anyway and outlined my intentions going forward, I've never once said I wouldn't be making the payments and I've made her my priority over the past year.

Just_Di

shellzebs wrote: »

she has emails and Whatsapp messages - and I've got all of that as well, showing me as willing to work it out and I've got a record of all my payments back to her. I'm going to suggest the repayments are £150 and if she declines this, the court will decide based on my income and expenditure.

First of all login to MCOL and file your Acknowledgement of Service ticking the box which says you intend to 'defend all of the claim' to protect your legal position. You're allowed to change your mind later

That will prevent a Default Judgment (a CCJ for missing the 19 day deadline).

You will then have 33 days from the claim Issue Date to file your Defence.

If she doesn't inform the court she intends to continue with the claim within 28 days of your Defence being served, then the claim is automatically stayed (a pause button).

From what you say you are willing to try to work things out so after you file a Defence you will be offered free telephone Mediation by the court where you can (attempt to) settle this via a Mediator. Any settlement reached will be legally binding but not a CCJ which will put a blemish on your CRA file.

The Claimant (your ex-friend) has the freedom to Discontinue the claim at any time if she wishes, but it seems there's a breakdown in goodwill at the moment which may be resolved with Mediation.

Failing that, then the Claimant will have to persuade the court that the 'contract' between you is valid (did you sign/date anything?).

Di