Lending money to friends & family

barefootinvestor

Like another poster outlined, small claims court would be your best bet. Although to apply for a hearing will cost you a $100 or so dollars maybe a bit more. You don't need a lawyer but as much evidence as possible will only help your case.

First of all you have to be confident that the court papers will be served, so registered mail is the go there, so he has to sign for it and he might refuse the envelope expecting it might contain court proceedings.

If it does get to court, he may well claim that the money was a gift, obviously he cannot deny receipt as there are banking records.

In hindsight it would have been wise to get a adhoc contract signed by him and witnessed by a third party, that would have given you an airtight case.

Maybe you could find someone else he has also done this to and use them as a witness, that would give you a strong case. Or even approach his family and enlighten them on his debt. Certainly would put the pressure on.

I guess his mentality is that if he lays low long enough you will forget about it!

If your serious about pursuing repayment I guess you will have to catch him out with the small claim court papers and then really put the pressure on him through any mutual friends and family.

Dirty business lending to friends and family. Lent money a number of times to my wife's family, very unreliable and they automatically think its a gift.

My wife is Philippino, weird bunch!

The best of luck!

barefootinvestor

Addressing Josh's question, a text is not a contract but it is an admission of 'a debt to be paid'.

In your case if you can still contact the 'friend' and I used this word loosely. You could produce a polite letter requesting payment before so advise legal action be taken through small claims. in your letter you could obviously insert the text as a quote implying that you have irrefutable evidence that you are owed an outstanding debt.

And that telephone records provide ample evidence that it was in fact your friend that sent the message thereby admitting that he is honor bound to settle the debt with you.

Like I said, its a dirty business lending money to friends and family and although it is hard to be nasty, most of the time that's what it takes.

There's no free lunch for you! So why should they get a free lunch!

Go get em!

poppasmurf_bewdley

savvysaver07 wrote: »

I sooo agree with this. Lent my 'best friend' a very large amount of money and theres £1700-ish left to pay only to be told today that she's not paying it any more and theres nothing I can do about it. I just don't know what to do...i'm full of regret and hate for lending the money to this so called 'friend'....100% gutted...feel like crying

So sue the bi*ch for every penny.

If she's paid some money off, then you've proof that she's borrowed the money from you, if nothing else. Even if you don't get your money back, you have the satisfaction of ruining her credit rating for at least 6 years.

Don't get mad, get even.:D

Tinsley1

I was just wondering if anyone happens to know:

I have heard a few times if you approach a debt collector or whatever and offer monthly repayments of next to nothing like 10p, they can't turn you down or something and must accept it?!

Basically someone owes me money, I have proof in terms of bank transfer/them stating it in messages etc but they are sending me a letter about it instead of texting/facebooking to say how much they can pay back when...

If the letter is sent recorded I will refuse to sign for it and try and get down the small claims court sharpish. I'm hoping what I have heard isn't true, just terrified this person is going to offer hideously low repayments. I've got an ill dog who needs allergy tests and she knows this

Sorry its a bit random, does anybody know? Just gone on red alert a bit about them sending me a letter....

KeiraB2011

Hello
I've just joined and i dont know how to post a new post. I lived with two friends a couple of years ago and one of them convinced me to get a tv for myself and him on the understanding that he will pay me back...when the finance had to be paid i paid it all now i am still waiting for his money. I have now found out that he is trying to sell the tv but i dont know if he will be paying me back with this or not. I have a facebook message from him saying that he will one day pay me back, off the top of my head i cant remember if the amount was stated...its £600 he owes me.
Please can anyone give me some advice?
Keira

chalkie99

Was the finance in your name?

If so it sounds as though you are the rightful owner. Did you move out and leave the TV?

KeiraB2011

Yes finance was in my name.
He took it with him when the lease ended. so it is still my property? how would that work?

KeiraB2011

I am going to pop into a local solicitors this afternoon and see how much it will cost me to get some advice, hopefully free but i doubt that very much lol

*Louise*

KeiraB2011 wrote: »

Yes finance was in my name.
He took it with him when the lease ended. so it is still my property? how would that work?

If it's in your name and he hasnt paid anything then yes, the tv is yours.

You can sell it by all means, but he has no business selling it and keeping the money.

I_know_my_ABC_and_my_CMYK

auto27 wrote: »

Im seeing lots of people posting about lending people money and they havent paid it back. A verbal contract dosnet mean anything. If you are stupid enough to lend someone a large amount of money then come on, its your fault if they dont pay it back. If they are asking for money in the first place this should be raising alarm bells in your head straight away.

Your post is a bit confusing, do you mean people borrowing money and not paying it back to the lender?