Illegal loan or friend loan.

CKhalvashi

It also strikes me that this needs to be reported.

I get why she doesn't want to, but reporting this will be a massive weight off her shoulders overall.

MalMonroe

Gus73 said:

If it was just me I'd just report her, but my partner is under severe stress and depression over it all and I know she doesn't want to report her and i dont want to cause her more stress . So I might just say I am willing to let her pay the balance just on the 2000 actually loaned at a monthly amount my partner can afford if they won't accept this then I will just stop paying and report

I also think that this loan shark person needs to be reported. Especially as they are operating an illegal loan business while working for someone else. (What a nerve!!) Do they have a licence to operate as a lender?  They are going to be in big trouble because somebody at some time is going to report them. The employer at least needs to know what's going on. Your partner's stress and depression would, I'm sure, be relieved a hundredfold if she reported this awful person. And if so many others have also taken out loans with the lender, how can she know who has actually reported her?  And also, why is she working for someone else if she's doing such a great trade as a bully and a lender? Reminds me of the mafia!

Your plan is a good one, though because obviously it's not good to borrow money and then not pay it back but the 'interest' added on is out of line. 

And if this person is not a registered lender, they can't really have any comeback if you don't pay any extra because they will just end up in hot water themselves if they have the nerve to report anyone else. 

I feel so sorry for your partner but with your support and once this is over, hopefully she can take a deep breath and get on with the rest of her life. Without taking on any more loans of this type. 

fatbelly

The first thing someone (you?) need to do is search the Financial Services Register for companies and individuals authorised by the Financial Conduct Authority (FCA) to lend

If this person isn't registered then you should report them

https://www.stoploansharks.co.uk/

TripleH

1. Was there an agreement in place specifying terms of loan?

2. Is the 'lender' declaring the interest they earn to HMRC? If not I'm sure they would be very interested in this undeclared income.

I do think this lending sounds too fishy to be legal from what has been presented.

HMRC can be notified by anyone anonymously for tax evasion (so I understand) so your partner doesn't have to report them.

Gus73

Cheers on positive note she has now secured more hours and the plan from step change looks achievable , providing the credit card companies are willing to freeze interest. So if I put this loan on the back burner or get her to accept an affordable payment I think things will definitely look brighter to her

TripleH

It's your choice but if I was you I'd request details of this loan agreement not that I think there is any official paperwork.

The concern is that the person may put pressure on your partner to get their loan repaid and you may find that they are not prepared to accept the proposed repayment terms.

But... its up to you (as a couple) to decide your options.

sourcrates

Gus73 said:

Cheers on positive note she has now secured more hours and the plan from step change looks achievable , providing the credit card companies are willing to freeze interest. So if I put this loan on the back burner or get her to accept an affordable payment I think things will definitely look brighter to her

I wish posters would stop referring to her as a "lender", this woman appears to be loan shark who loans money at stupid rates of interest to work colleagues etc, as a way of making extra cash, so there won`t be any "paperwork" or any of the usual niceties.

Is she a one man band, pardon the pun, or does she employ muscle to make sure folk pay on time, its important to know, because if its the former, just refuse to pay the extra interest she keeps adding, and pay back the balance, unless she is the latter, there won`t be anything she can do about it.

It will all likely be front anyway, because it only takes one report to have her down the nick, answering awkward questions about her moneymaking activities, she has a dam sight more to lose here if her operation is as big as you assume it is.

Gus73

Thanks I know there is no actual paperwork just an email to say she has recieved the 2,000 and to say she is to repay 2,600. I will wait and see what there response is to the proposal , but my partner has no assets or savings so I'm hoping they will see it as an opportunity to get their money back. All be it without the Interesr. The more I look into it the more it looks like an illegal loan, especially as they have done it with multiple people, plus as pointed out if they haven't paid tax on the profits they could be in serious trouble.

Gus73

I checked the fca register and they arnt listed at least not under the given name

TripleH

Well the email saying she lent £2,000 but expects £2,600 is very helpful.

Op, we can't tell you what to do but I would submit my concerns to both the Police and HMRC separately (HMRC tend to like nice easy prosecutions and will have a lot of data to hand about declared incomes).

How much has your wife borrowed in total and how much has she paid back?