Lending money to friends & family

Tixy

hannah

I would think your chance of being successful with any court action are pretty low.
You could write her a formal letter though asking her to repay the money owed or to write to you to detail how she proposes to repay the debt. That might trigger or worry her into paying you. But aside from trying that I think you'll have lost your money in this case.

clairex

Not sure this is the best place to ask this but hoping someone can help. I sold some furniture to a "friend" who "suddenly" found they did not have the full amount we agreed she would pay. We agreed she would pay the balance in a few weeks. I only agreed if she would give me something in writing to say that she would pay, which I still have. I no longer live in the same town, which is why I was selling the furniture in the first place, and she says she has moved, keeps coming up with reasons why she cannot pay yet and will no longer speak to me. I no longer believe she intends to pay ever. Can I legally use a private detective to trace her address so I can sue through small claims or is this harrassment?

harryhound

There is nothing to stop you trying to find someone.

How much is the amount outstanding?

Beware of putting good money after bad.

You should have asked the friend to put it in writing on a post dated cheque or series of cheques.

neomieB

It had happened and we can't change it. All I can suggest is write your friend and ask for the money. Tell him/her that you needed the money.

EclipsedMind

I am hoping someone can clarify a few things for me.

I was lent (interest free) several thousand pounds by a family friend six months ago to help with a house deposit. The disussion prior to the loan was on the phone and all that was said was pay me back when you can. Due to the amount of money involved it was going to take 3-5 years to repay and this was commnunicated but no repayment plan was agreed so it was left at best effort.

I was able to save some money a few months back so I paid some money back for 5 consecutive months. This was voluntary and not asked for by the lender and was done bank account to bank account so an audit trail exists.

However the family friend who made the loan fell out with the whole family inc myself and immediately demanded repayment. This was maybe 1 month ago. I made a payment that month regardless. I texted them I could not repay in full at this time but would make it a priority to do as quickly as possible and would continue monthly payments and would pay bigger lumps off when I could. I received no reply or contact since then.

However I have just taken a drop in income (damned economy) this month and cannot now make a payment. I contacted the person and told them I could not pay monthly but due to a maturing investment I can repay them in full in sept at the expense of my other debt which is interest bearing. They said it is not good enough and demanded I pay interest for breaching our agreement. To which I replied what agreement do they think we have.

They claim my text constitutes an agreement that I will pay monthly and are trying to argue that I should pay 20% interest on the mothly payments I miss.

I am repaying them in full and considerably earlier than originally thought so i just can't see what the issue is but they seem hell bent on being an ahole. I think I am being reasonable in difficult circumstances and I am not seeking to avoid repayment at all.

My questions are:
1) Have I entered a binding agreement to pay monthly?
2)If I have make an agreement and as the text contains no amount is it viable to just make any payment or would I have to match the previous ones.
3) Can they impose random breach clauses
4) As they are not a licenced lender and I am repaying in full in a 4.5 months time is they whole thing even worth small claims court if they decide to be petty?

Tixy

Eclipse Mind

I think its pretty unlikely that the person who lent you money would be successful if they tried to take you to small claims court (doesn't mean they won't try though).

Certainly no reason to pay them any interest, no way would that ever stand up in court. I would not send any more texts and certainly don't send any letters to them.

I would try to pay them something every month if you can, and obviously to pay it off as soon as you can. Keep the transactions going through the bank account so you have the paper trail.

paddyrg

Oh dear, it has gone bad. These things often do, sadly.

Best thing to do is to keep paying as fast as you can (although there are no fixed amounts enforceable), you may even choose to offer a small amount as a goodwill thankyou, but certainly not 20%. That is both silly and the retrospective 'terms' are not enforceable, even if you had a formal agreement (which you don't). Don't worry about court, this is a non-case if you are still making a best effort to clear the loan.

LovelyLeeds

I seriously recommend not to loan money to a friend. I loaned £1800 to my best friend with promises to pay it back £100 a month after the 3rd month of the loan. 10 months in, I received a cheque for £200 and then nothing. After two years, (and going through a divorce - with my solicitor invoicing me every month for £500 :mad:) - I was totally dismayed and disappointed to see my best friend's photos of her and her family on holiday in Germany France and Switzerland. I had 4 days at Butlins. I was so incensed I contacted my friend and asked for my money back urgently as I had large bills to meet. Thankfully, 3 months later, I received a cheque for £1600 from her but without a word of thanks, just a cheque - no card, or anything. Since then, we have barely spoken, it has ruined our friendship.
My advice to anyone is this: give money to friends if you can: a) afford it, b) want to. Never lend friends money - they are never grateful or gracious about it - a life lesson I learned.

paddyrg

Just remember "no good deed goes unpunished"!

*judge*judy*

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