Small Claims Court - for unpaid loan, how do I add interest?

retiredbanker1

You need to hold a Consumer Licence to be able to charge interest.

Just to get things in order - when exactly did you lend the money? And when was the loan last acknowledged?

Just get a judgement for the capital and move on.

[Deleted User]

Firstly, have they ever actually acknowledged (in writing) it was a repayable loan rather than a gift?

Secondly, Just because they now have came into money doesn't mean it's readily available; assuming you win or get a default judgement - will you be able to enforce the judgement?

JustPeachie

Thank you Olenna, yes they have stated in several documents to third parties that this was a loan. To be honest I don't have a clue how the repayment would be enforced. I thought if it was Court ordered they would have to pay it?

eskbanker

JustPeachie said:

To be honest I don't have a clue how the repayment would be enforced. I thought if it was Court ordered they would have to pay it?

It means that they'd be legally obliged to, yes, but if they simply refused, despite that, then what....?

JustPeachie

There is a fair chance they would try to refuse to pay. I would be prepared to go back to Court and pay to have them enforce it but I can see you are saying, that would be added on to the amount they owe me but if they *still* refuse to pay...

Yorkie1

JustPeachie said:

Thank you Olenna, yes they have stated in several documents to third parties that this was a loan. To be honest I don't have a clue how the repayment would be enforced. I thought if it was Court ordered they would have to pay it?

You will need to consider how you will provide the evidence of this to the court, as it's not direct evidence from you.

ChirpyChicken

JustPeachie said:

There is a fair chance they would try to refuse to pay. I would be prepared to go back to Court and pay to have them enforce it but I can see you are saying, that would be added on to the amount they owe me but if they *still* refuse to pay...

Good chance they will have their bank details and  a third party debt order would work nicely