Stupidly lent money...help!

[Iamclearlyamug]

Hi all

To cut a long story short, I lent £1000 to a (now ex!) friend of mine last year when she got fined by the council for excess noise at her council property.

I took out a loan to do this (I know I was stupid - I beat myself up about it enough as it is!) The payments are £50 a month over 2 years, the DD is in my name and she was meant to pay me back each month into my account. This was in may last year and in that time I have received less than £60 in payments, every excuse under the sun. She can't be that skint - I've seen her posting on Facebook asking for someone to come round and do her nails and stuff! The loan is being paid, I'm not behind on it and will not allow it to default.

My question is can I take her to small claims for the future payments and to claim back what I've paid so far? Or do I need to wait until the loan is paid in full and then take her to court to get the money back? I have Facebook messages from when I first took out the loan saying she'll pay me back each month - and the fact she has made some payments proves that she accepts she owes the money. Well I hope anyway.

Any advice would be much appreciated - or suggestions as to what type of solicitor I need to see for advice would be good also. Thanks very much in advance :)

[Ilovecaindingle]

Unless she signed an agreement I doubt she will be forced to pay up. Maybe message her on fb when are to expect the next installment of the loan you took out for her etc??

[prh47bridge]

A signed agreement would be evidence of what was agreed. However, contrary to the last post, the absence of one does not mean the courts will not force her to pay. The courts will have to decide whether it was a loan or a gift and, assuming they agree it was a loan, what repayments were agreed. The Facebook messages will be very helpful in this respect as will evidence of the repayments she has made.

This will be a small claim. You do not need a solicitor. If you use a solicitor you will not be able to reclaim your costs from your friend. You can claim court costs from her but not solicitor's costs.

Your first step is to send her a letter before action giving her a deadline for paying and stating that you will take legal action if she fails to meet that deadline.

[Iamclearlyamug]

Thanks bridge that's very helpful. Can I do this now though? Or do I need to clear the whole loan first and then start action?

[NeverTwerkNaked]

You can start now
Don't beat yourself too much, lesson learnt, she should be the one that feels awful!

[prh47bridge]

Agree with NeverTwerkNaked. I would suggest that your letter before action demands repayment of the whole amount in view of her failure to make the agreed regular payments. You may end up with the court setting a new repayment schedule but you will then be able to go back to court for enforcement if she doesn't pay.