Lending money to friends & family

schooling123

thanks a lot for everything

Ad1976

Hi all,

A friend and myself lent a individual a personal loan of £2000, for he was in desperate need to fund his brother wedding. He came to us in a proposal saying that he had in his PayPal account £4000, and that he cant get access to it as he closed this business and PayPal account and that the money needed to be in the account for a period of 6 months before it can be released. he showed us a Letter from Paypal stating that providing that there is no activity in the account.

We signed a contract in which he said he was was willing to give the whole some of £4K to us in 6 months of the day of sending the money to his account. This was done electronically.

Nearer the time we got in contact with him as a reminder that the date of the money to be due is close, and he replied by saying he was not upfront and that he was using the paypal account, and that he thinks he was being cheated and should only pay the 2K.

Now he is saying he is willing to pay the sum by in installments of £100 per month that is equal to repayment of 3.33 years.

The contract was signed by him, myself and the other friend who lent him the money.
It was also independently signed by 2 other witnesses.

Please can someone advise the best way forward now, is it via smalls claim court, or the sheriffs etc.

Thanking you all in advance

gb12345

Ad1976 wrote: »

Please can someone advise the best way forward now, is it via smalls claim court, or the sheriffs etc.

Don't know about sheriffs - I assume from that you are in Scotland (or the wild west ), but yes legal action would be your only recourse.

Be warned though that if it went to court, a judge may just say that his repayment offer to you is fair based on his circumstances - it is not guaranteed that you will get all the money back immediately.

GDB2222

Ad1976 wrote: »

We signed a contract in which he said he was was willing to give the whole some of £4K to us in 6 months of the day of sending the money to his account. This was done electronically.

If I understand correctly, you entered into an agreement to lend this guy £2000, with £4000 repayable after 6 months. I take it that you have no license under the Consumer Credit Act, and you did not provide any of the prescribed paperwork? In that case, you will struggle to get anything back in court, including your initial £2000.

You really needed to understand the law on money lending before going into the business. I suggest that you accept whatever you can get. And stay well away from the courts on this one!

daisy0210

Maybe you could Google his name to find out more about his whereabouts.

iaanhayden

If you do, you’ll be lawfully to blame for giving off the liability if they do not or will not pay. How would you seem if you got attached with your someone else’s liability? This sort of thing can origin tension and resentment, and might even decimate the relationship.

John_Pierpoint

iaanhayden wrote: »

If you do, you’ll be lawfully to blame for giving off the liability if they do not or will not pay. How would you seem if you got attached with your someone else’s liability? This sort of thing can origin tension and resentment, and might even decimate the relationship.

I don't begin to understand this posting?

gb12345

John_Pierpoint wrote: »

I don't begin to understand this posting?

Ramblings of the deranged or the results of a Google translate by a future spammer - take your pick, but I know what my money is on.

retry4z

I let my friend borrow about $100 almost a year ago and another $200 over the course of time after that. He has made several vague promises but never payed back.

He also borrowed various amounts from about a dozen people and still hasn't payed them back.

Recently he said he didn't want to be friends, but I made clear I still expected the money back. He agreed by, agan, gave only a vague "I'll hopefully pay you back by the middle or end of April". Then he stopped responding to my messages and calls.

My question was: He gave me a check for $70 as insurance the first time I lent him money, so I wanted to know if I can modify that check to get the full amount ($300) in any legal way?

gb12345

retry4z wrote: »

My question was: He gave me a check for $70 as insurance the first time I lent him money, so I wanted to know if I can modify that check to get the full amount ($300) in any legal way?

Tippex and a similar coloured pen - the bank will never notice trust me.

Serious answer - NO it would be forgery and the cheque will probably bounce any way based on his attitude to money.

This is a UK site, so I would recommend you look for a US site (based on the $ and spelling of "check") where you can get advice on what to do legally.