Lending money to friends & family

Apples2

redbantam wrote: »

I need to know the best course of action to get back the money owed to me

The person who owes me the money is on benefits including DLA

The second point is the crux of this matter.
You can issue CCJ's until you are blue in the face but for someone on benefits, they (by definition) have no money spare at all (I know, I know, but lets not go there!)

At best the Courts will see the lack of income and instruct £1 a Month or something else ridiculous. You can't get blood out of a stone. If there is no money, there is none for you to take.

I think you can wave goodbye to your £800 plus whatever else you have spent in trying to reclaim it.

Sarah_Newton

Yah, its right, if you actually lent the money to a person who has CCJ(County Court judgements) records against him, its fairly easy to prove that he was at fault in not paying you up. But, that also depends on his callibre to pay money, becoz the court cant do much if he is not in a position to pay money.

EdW_2

The general attitude I've taken is don't lend money to your friends, work colleagues or family if it's money you directly need or expect back in a specific timescale.

It makes it impossible, and basically destroys relationships. If they fail to pay, you then get annoyed, think they're making excuses (they may be, but hard to prove) and it's a mess.

I lent a friend about £500 a couple of years ago, in dribs and drabs, and they haven't repaid me due to a number of factors - redundancy, children etc., and I told them to "write it off". I barely speak to them now, and they are visibly embarassed by the situation.


So the only advice I can give is a friend asks you to borrow a sum of money, think about could you afford not to get it back. If the answer is "no", then don't do it......

smith284

Lending money to friends and family is now a days is cumbersome. I , myself got the money from my parents for enjoying the holidays in the Hostel Cartagena.

shegha

hi,
can anyone help me?
i am going to lenda friend some money. Can anyone help with a document or wording of an agreement? From reading the thread I know I need a witness. Any help or guidance would be great.
Thank you

ColinFishwick

CatalinaMadnickh is spamming the forums

harryhound

pioneerloghomesofbc wrote: »

If you will lend money to other people u must have a written sign by him/her and a witness for your safety.

What you can do is get them to sign an undated cheque, or a series of such cheques.
That is a promise to pay that can be enforced without a huge investigation into why, when, where,..... if you go to court.

Realistically each needs to be for at least 100 GBP to make the legal costs realistic.

However as already said you cannot get blood out of a stone. That is one of the reasons why rates on "pay day loans" are so high.

dizzy2274

Hello Everyone

Really need some advice. About 4 years ago I borrowed £1000 from a friend. He transferred the money using online banking to my account.

I repaid the in cash a about a month later, because he WAS a friend I didn't even think about getting a receipt or ask him to sign something to confirm that I had repaid the loan in full.

Shortly, after he and I fell out about something (can't even remember now) and haven't spoken or met since. Last week, out of the blue I received a solicitors letter, basically stating that I had 14 days to repay the loan or a debt collection agency will ordered to visit to collect the debt!!!:mad:

The letter was sent to my parents house (I've moved houses since I last spoke to my 'friend') and letter had to be signed for.

I just don't know what to do, I can't prove that I have repaid the loan.

Any advice or help would be really appreciated.

maz1964

shegha wrote: »

hi,
can anyone help me?
i am going to lenda friend some money. Can anyone help with a document or wording of an agreement? From reading the thread I know I need a witness. Any help or guidance would be great.
Thank you

i would even ask for a guarantor incase they fail to pay and depending on the amount go to a solicitor and see how much that would be and get the borrower to pay it, they are the ones desperate for the money and if they wont then tell them to save up the money themselves, having been burnt by a so called friend and now having a ccj and i have to pay it, i really have to say it straight to all, either get a legal document to ensure you dont fall into the problems ive fallen into or help them in other ways buy them food and forget it and tell them they can pay you back when they are on their feet again, but if they dont then if you can afford to buy them food and not worry about pay back then you will have done a nice thing for them - but hard cash i really dont trust anyone anymore im afraid,,,, take care maz

capri-boy

Hopefully this is the right place to post this, I've read most (75%) of the precceding posts.

My house mate needs to loan some money from me, were friends and have known each other awhile, and at present no one else is in a position to lend it them. They have a house for sale as well as paying rent on the property we share and there outgoings are pretty similair to their incomings. They need the money to buy a car in order to be able to get to work / take there kids to school. Before anyone asks - the answer is yes and no - to risk losing the money and friendship would be hard and painful but no, it wouldn't pose serious financial harm to me.

I'm looking for advice on the best way to do it - the amount is circa £5k (probably slightly under due to SCC jurisdiction if the proverbial hit the fan) and my thought would be to loan it on an agreement that it's repaid on the sale of the house or 1 year from the start date whichever is sooner. Should the year expire and the house remain unsold we would then have to renegotiate (an extension). I am not looking to make any profit on this, full stop, even so far as BoE base rate as if it was parked somewhere.

What agreement should we use? Can one be aquired online? for free? How COULD collateral (the car) be included in it? I believe thatas long as we cover all the bases possible and that we are open and record our expectations of each other then this should pose no significant problem....
thanks