Lending money to friends & family

diable

Speak to a solicitor, get a contract drawn up and get your friend to pay the costs. Personally I would just lie and say I didn't have the money. The kids can walk to school.

chalkie99

If you've read most of the posts I am surprised you are still considering it!

5K for a car they cannot afford? What is wrong with a run around - you could pick something up for a fraction of that which would see them through. Beggars can't be choosers.

Have they budgeted for insuring and running it too?

If you do it why not buy it in your own name and retain ownership?

At least it is a tangible item and you can see where the money is and your friend cannot just sell it and fritter the money.

As long as their insurers know that they are not the legal or registered owner there should not be a problem. (Some, but not all, insurers are happy with that).

capri-boy

ok - they already run a car, this will be a reductionin running costs / insurance. There kids can't walk 5 miles to two different schools every morning then again in the afternoon, public transport is a joke outside of major towns and cities imo. My friend cannot walk 20 miles at night to there job and there are no buses that go anywhere near there employer at 11 at night and 6 in the morning.

The money won't be frittered - I'll be driving them to the dealer to pick the car up and share a house with them so it won't be sold - yes you can get a runaround for much less - but not a seven seater that you could call reliable enough because your job stipuates you must own a car. Having the car in my name is not something I want to do, as per the OP though having it named as collateral is a possibility.

I thought here at MSE someone would have real experience of something like this, maybe a template like what was named on p3 and or some helpful tips and advice about what to include in an agreement.

chalkie99

OK, well, it is possible a lot of regular posters don't necessarily look at this thread as it is a "Sticky" tucked away at the head of the list.

Try starting a new thread (call it something like "Looking for loan template") and see if you get more response.

To be fair, you never mentioned originally that this was a replacement car or that it needed to be a 7 seater so it was hard to give a more helpful answer, it was a matter of looking at things from an outsiders view to see if there was a different solution.

harryhound

Get them to sign a post dated cheque (or undated if you have a handy date stamp).
Present the cheque when the loan is due for repayment.
If it bounces sue.
It is a bill of exchange and it is up to the borrower to prove that the contract between you was not fulfilled.
That said you will get judgement but you cannot get blood out of a stone.

If the borrower does not want to sign the cheque - make your own decision:eek:.

norabee

Hi

another similar story!!!
My now husband took a loan out for a "friend" of £10K (once all paid back was £16K) as he had a gambling habit and had some very nasty people chasing him (so he was told) as this was a life long friend he didnt hesitate to do it. Not long after this "friend" was arrestd and sent to jail for fraud - he tried to "remortgage" another friends house and tried to take a loan out in his mums name. Anyhoo, my hubby has letter from when this guy was in prison firstly promising to make the loan payments and asking him to take a further £17K out (thankfully he didnt!!) this was bout 6/7yrs ago - recently he started texting and facebooking claiming he would begin to repay - which happened for 2 weeks at £53 a week now he has stopped - we have all this info - can we take him to court??
thanks
Laura

harryhound

You might be able to, you might well "get judgement" but will you ever get any money?
Can you get blood out of a stone?

This is like giving "tea" money to a skid row crack addict - I offered to buy one a cup of tea once and got a stream of abuse.

DuhCubbiz

Well you know the saying...judge himher by their friends. It is unfortunate that friends & family cant meet the gf in advance. Sometimes I think that maybe the friends or family could point out the foibles because we are currently blind.

dillynlp

Hello, all. This is my first post so if I'm in the wrong place - I'm sorry! My husband and I lent some money to 'friends' who signed a promissory note to repay the amount at a set rate over a number of years. This note did not include any interest calculation as we believed private loans were not regulated. 3 years on we are now in court proceedings as our 'friends' have decided that they are paying too much despite agreeing to the figure originally and are now paying nothing. Can anyone tell me whether private loans are exempt from the CCA? One lot of legal advice tells me yes and we have done nothing wrong but they have taken legal advice that say we should have included an interest calculation. Can anyone advise me please (apart from telling we shouldn't have lent it in the first place!)

hannah252

Hi everyone,

Could do with some advice, Going back 2 years ago my friends marriage broke up and to help cheer her up i asked her if she wanted to go on holiday with me and two other friends i offered to lend her the money to pay for it as she didnt have it and she would pay it back when she could. For the last 2 years she has paid £85 back to me and keeps coming up with different excuses as to why she cant pay me. And now we have fallen out.
To be honest i have had enough now and just want this matter sorted. Is there anything i can do to get her to pay me this money back.
The full amount was £300 and was paid on my credit card i also have two friends as witnesses and txt messages she has sent me admitting she owes me the money.

Thanks