Lending money to friends & family

Warriorsith

Thanks for the reply Harryhound, I think your missing the point.

The aunt said 3 years back £120.92 for 36 months this equals £4353.12. The final total 4353.12 - 3713 (loan amount) = 640.12. Divide that by 3713 and it equal to 16.8% interest rate from the start of the loan not the 7% which was the start of it.
My OH never saw the loan agreement but verbally agreed to repay £120 over 36 months and had a witness for that verbal agreement and has kept to that. If we pay a further £900 it takes the loan repayment to over £5300 for the loan. I mean who chooses to get a Flexible loan when it's a loan not for you, I know that Aunt stated she didn't know but when you get emails state the interest rate is going up then you'd check it out surely? and then inform the other party of the mistake not inform them a month before the end of the repayment you agreed.

I would like to know if it went to court what stand ups and the possible outcome?

samsondog

Hi Everyone

Still no further forward with our neice her husband and the money they owe us. Our neice being so vile and nasty along with her mother...if only they would acknowledge it, and offer to pay even the smallest amount......this would be so appreciated and show that they actually care. Don't even know where to start for recovering this money. Take care and thanks for reading this, it does help me.

harryhound

Hi Warrior,

Niece was in DEBT.
Banks sell DEBT that is their business.
Bank has probably not made a mistake, it has been selling DEBT on easy terms for hundreds of years.
DEBT is addictive, banks want to keep you hooked.
Do all three of you understand the difference between a flat rate of interest and the real APR on a declining sum?.
Get all the paperwork and do the calculations.
What APR was niece paying on HER DEBT before auntie tried to help/meddle?
Do the sums and work out how the three of you got into this mess.
Agree what to do and learn from your experience.
Playing legal ping pong will INCREASE THE DEBT it will not make it go away, not to mention creating bitter resentments within the family.

Harry.

lesley1960

We have just lent a family member a large sum of money because an HMRC baliff was on the doorstep . We were told we would have all the money back within a week . We have had just under half ,and was told Sunday that we should be able to have another £2000 at the end of March and that they will have to sell something to pay the remaining £2800 .What really annoys us is they dont seemed concerned that they lied to us at the time ( we would have probably still lent it to them even if we knew it might be a while to get the money back ) ..........I am quite expecting that the next time we see them they will have bought themselves something expensive ( hence the financial mess they are in )

harryhound

Addicts always lie.
Tobacco.Alcohol,Crack,Shopping,Gambling,DEBT - that is why banks take security, and do credit checks and charge a fortune for unsecured debt.
Failing to pay the tax man is usually half a step away from bankruptcy - the takes no nonsense, what ever his boss Broon might tell you..
There is almost certainly a pile of other debts, not to mention bailiff charges and a really tough attitude from the HMR&C in future years.
"Fool me once shame on you - fool me twice shame on me"

Do let us know when you get it ALL back.
Tell us how much they appreciate what you did for them.
Let us know how much they feel they should give you for being their lender of last resort.

MyLilFamily

Hello my mother needs some advice.
She took out a loan for my brother as a deposit on a house,this fell through so he and she went to the bank where he payed this loan off in full and got my mother to take aloan for the smaller amount of 4000 over 5years so with the interest this would mean hes paying back 5000. The money was put into my mothers account then transferred over to his. A Standing order to my mothers account for the loan repayment amount was set up. He Payed a few months but stopped the standing order in june last year without informing my mother. She is now getting bank charges as she is over her overdraft limit and cant afford to pay any of it. We understand she doesnt have a contract (he had paid her back before) can she take him to small claims court?
Thanks

samsondog

Families....we have learned the hard way.....please please think first..........don't do what we did. It's too late for us, and yes, we can stand the loss though it's not nice, we won't starve and we didn't take on a loan, this was our own money, hard earned, towards our retirement. Our niece behaving in such a vile manner along with her mother, at the end of the day she owes us 9k we owe her nothing. She is the one who has to sleep at night, is the one who should feel shame when in our company at family gatherings.
Please beware, no matter how close your family....never ever lend them huge amounts of money.

evan32

hello all

so sorry to read all of your stories, but i too have one, sadly.

i have learnt my lesson, sadly - never a lender...

6 months ago i loaned 10k to a colleague who promised to pay it back the following week. the money was send by CHAPS transfer, with no loan agreement at the time.

we've now spend 6 stressful months enduring what appears to be lies and excuses as to why the money can't be repaid, and along the way 3 failed CHAPS payments and three bounced cheques.

we have managed to obtain two letters during the last two months - one committing that the 10k loan that this person applied for to repay us was for that purpose, and the second that the latest cheque for 10k that we paid into our account from this person would clear as they had sufficient funds.

just heard cheque didn't clear, and person is now claiming that they are being made bankrupt.

any advice would be greatly accepted. we have family in need of help now (parents), and desperately need the money back.

thanks, evan.

harryhound

I was going to say: "A cheque is a promise to pay - it is up to the person who made the promise to prove it was illegal NOT up to you to prove it is valid. So threaten them with bankruptcy proceedings".

Seems someone has beaten you to it ?!?

I don't know how to tell you to get inside the loop so you know exactly what is happening. Perhaps someone else will b along to advise; but expect to find a can of worms and don't count on getting anything back, especially this year.
Let us know how you get on.

Ms.Island

Hello

Sorry if this was mentioned already.

Basically I am looking for a template of Loan Agreement.

To be more precise, I added my friend as an additional cardholder of my credit card account, because he had bancrupcy about 5yrs ago, hence cannot get any accounts.

I don't feel he is much of a friend now and want to cut him off.

He was the only one using the card (as I use my other one for), and it all shows on the statements (as he's got separate card with different number on it).

He is always taking care of minimum payments and a bit more, but it is around £600 in credit atm.

I also want to transfer the money onto another card, as it offers interest free credit for like 6 months.

Could anyone advise me of a template (or any other advice) to deal with this.

(Just recently I found out that it's me, who is liable for whatever he borrows and I am a student with debts already (( so this doesn't help at all)

Thank you for reading and I will be grateful for any advice!