Loan agreements

jacquelineisitt

My sister in law lives in the USA.  She has asked to borrow money   We have lent money before and it was a battle to get it back.  Is there a way that a repayment plan can be drawn up that is valid between us in UK and her in USA,?

[Deleted User]

Even if there were such a thing, how are you going to enforce it? Pay a debt agency in the US to collect? Their fees alone might make this a waste of time, they also cannot get blood out of a stone if she can't/won't pay up.

You said it yourself, it's a struggle to get it back. Either give the money on the assumption you won't get it back or don't lend it if you want to see it again.

HobgoblinBT

Don’t do it.  

I recall a case in my Commercial banking days when we lent to a group of companies including an overseas Company, we required the borrower to get their acceptance notarised and a lawyer confirm that the loan agreement was acceptable in U.K. law and that of the foreign country.  The borrower received a bill for over £5k from their lawyer.

You then have the past history of a battle to obtain repayment.  Advise them to approach their own bank in the USA who lend money for a living.  If they lend, problem solved.  If they don’t, accept that an organisation with more experience than you have made their decision for good reason.  

sourcrates

jacquelineisitt said:

My sister in law lives in the USA.  She has asked to borrow money   We have lent money before and it was a battle to get it back.  Is there a way that a repayment plan can be drawn up that is valid between us in UK and her in USA,?

No agreement in the world is worth the paper its written on unless you have the ability and inclination to enforce said agreement.

I would refer you to the previous trouble you had getting the money back from her, and advise your decision be made with that in mind.

macman

jacquelineisitt said:

My sister in law lives in the USA.  She has asked to borrow money   We have lent money before and it was a battle to get it back.  Is there a way that a repayment plan can be drawn up that is valid between us in UK and her in USA,?

So why do you even need to ask the question? You can draw up the most watertight repayment plan imaginable, regardless of domicile, but with no possibility of enforcing it internationally, it's worthless.

MEM62

jacquelineisitt said:

We have lent money before and it was a battle to get it back.  

Surely the conversation ends there.  Why are you even considering this?