Lending money to friends & family

venu_2

Dear all. Like all i did the same. Me and my friend wanted to start an off licence shop in 2011 and went a known person who is having one for sell the lease.
He said that he cant sell it if it is partnership. Then my friend said that we say him as one person and took £16000+ cash.
As he was already took loans and credit cards from all UK banks n didnt pay before 2006 , he hasnt got any bank account and registered the shop on his wife s name. We started working.
i later paid my £14k loan and £8k credìt cards money n my wifes £1200 towards his purchases from differant cash and carrys.

I borrowed more money n paid all through the chip n pin cards.
now he s not willing to pay me bak.i sent a legal notice but he replayed as fals alligation.

can any one guide me how to get my money back.

phillips88

venu wrote: »

Dear all. Like all i did the same. Me and my friend wanted to start an off licence shop in 2011 and went a known person who is having one for sell the lease.
He said that he cant sell it if it is partnership. Then my friend said that we say him as one person and took £16000+ cash.
As he was already took loans and credit cards from all UK banks n didnt pay before 2006 , he hasnt got any bank account and registered the shop on his wife s name. We started working.
i later paid my £14k loan and £8k credìt cards money n my wifes £1200 towards his purchases from differant cash and carrys.

I borrowed more money n paid all through the chip n pin cards.
now he s not willing to pay me bak.i sent a legal notice but he replayed as fals alligation.

can any one guide me how to get my money back.

Let me check: it's a partnership but it's only under his name, with no documents to back that fact up?

You'll have to be able to produce proof that there is some sort of agreement regarding the money, else it'll be the same with the case of this thread starter: you'll not get the money back.

fosco360

Must be really hard to take that kind of behaviour, especially when good faith is handed over

freebiz14

I vow never to lend what I cannot afford to lose to anyone. Sorry the good has to suffer for the bad...based on experience!


I've made up my mind to do without what I don't have or find alternatives. Sometimes what we think are needs are luxuries and someone doing something for may expect payback that will be too costly in the future.

Mr_F_Dorsetty

... maybe try reading this and learning by his experience.

http://uk.finance.yahoo.com/news/became-payday-lender-141713827.html

Your friends may well be different, but there again, don't you think everyone says that?

I am not responsible for the reporting obviously, so please... no silly comments directed at me thanks. If you don't like it, take it up with the author.

somethingcorporate

Interesting read, thanks.

kayekoo

Hello - I wonder if you might know what the legalities of this would be please?
My friend wants to lend me some money without security - but I insist on giving her security in the way of signing over to her all of the goods in my house, they would become her items that she would own but leave within my house for me to use.
If I should not repay her the loan in the agreed timescale then she would have my permission to rempove the items & sell them to recoup the loan amount.
I understand that in legal terms this is called "a levy "?

TrustyOven

kayekoo wrote: »

Hello - I wonder if you might know what the legalities of this would be please?
My friend wants to lend me some money without security - but I insist on giving her security in the way of signing over to her all of the goods in my house, they would become her items that she would own but leave within my house for me to use.
If I should not repay her the loan in the agreed timescale then she would have my permission to rempove the items & sell them to recoup the loan amount.
I understand that in legal terms this is called "a levy "?

Why on earth would you want to do that?

If something happens and you cant pay back, you lose your (essential?) possessions such as washing machine and fridge. Your family photos. Your books.

Why would you be so desperate to get a loan from your friend? This seems far too risky.

getmore4less

kayekoo wrote: »

Hello - I wonder if you might know what the legalities of this would be please?
My friend wants to lend me some money without security - but I insist on giving her security in the way of signing over to her all of the goods in my house, they would become her items that she would own but leave within my house for me to use.
If I should not repay her the loan in the agreed timescale then she would have my permission to rempove the items & sell them to recoup the loan amount.
I understand that in legal terms this is called "a levy "?

probably not the best idea, better you keep the assets and sell them to repay, you get more than the person lending does and you owe less, you would still be due any shortfall.

What's the money for?
If it is not buying something worth at least close to the value of the loan then is it sensible to be borrowing?
Why not just save up?

John_Pierpoint

kayekoo wrote: »

Hello - I wonder if you might know what the legalities of this would be please?
My friend wants to lend me some money without security - but I insist on giving her security in the way of signing over to her all of the goods in my house, they would become her items that she would own but leave within my house for me to use.
If I should not repay her the loan in the agreed timescale then she would have my permission to rempove the items & sell them to recoup the loan amount.
I understand that in legal terms this is called "a levy "?

Ovbiously I don't have any idea of the value of the items you might have in your home BUT as an executor of several estates; I am amazed & you would be too, how little the individual items in the average home are worth, especially if you are a distressed seller (ie you need the money in a hurry, possibly to be able to sell the house) - the real leverage, having some sort of "lien" gives, is that losing the fridge and washing machine seriously disrupts your shopping and laundry routines; but won't necessarily pay off the defaulted loan.
http://en.wikipedia.org/wiki/Lien