Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

1 2 3 4 5 6

Original poster

"friend" defaulted on loan and is avoiding me

airedailleurs · 2014-09-04T12:10:20+00:00

Would really appreciate some advice here: - a few months ago a work colleague was really distressed as bailiffs were outside her house waiting to enter and take her things unless she repaid a debt. - I was really concerned for her as she has a young daughter and lent quite a large (4-figure) sum of money, and we both signed a loan agreement printed off from a legal website on internet, whereby she agreed to repay me £200 per month (she suggested the amount) by direct debit. - after only 3 months she cancelled the direct debit because £700 of unpaid council tax was deducted from her salary (the council concerned had arranged this with our employer) - she then arranged for this unpaid council tax to be repaid £100 each month, and started to pay me back again, this time at £100 per month, which already contravened the terms of our loan agreement but I was ok with this due to the council tax, but thought it odd that she hadn't mentioned this outstanding council tax debt to me. - She did not re-establish the direct debit and has paid me a total of £700 since receiving the loan, with me having to request the money from her each month. - I resigned from my job in July so we no longer see each other at work, but until this morning we were facebook friends and were in touch this way. I have been trying to contact her to see if she was in a position to make the payment due on 31st August, but she hasn't responded to my messages and has now "unfriended" me on facebook. - I can't believe that someone I thought was a friend would behave in this way; I have been nothing but generous and understanding with her. As she is not responding to my attempts to contact her to discuss an amicable way forward, do you think it's unreasonable to take legal action against her? Would appreciate your views please.

130 replies

airedailleurs · 04/09/2014 13:10

Would really appreciate some advice here:

a few months ago a work colleague was really distressed as bailiffs were outside her house waiting to enter and take her things unless she repaid a debt.

I was really concerned for her as she has a young daughter and lent quite a large (4-figure) sum of money, and we both signed a loan agreement printed off from a legal website on internet, whereby she agreed to repay me £200 per month (she suggested the amount) by direct debit.

after only 3 months she cancelled the direct debit because £700 of unpaid council tax was deducted from her salary (the council concerned had arranged this with our employer)

she then arranged for this unpaid council tax to be repaid £100 each month, and started to pay me back again, this time at £100 per month, which already contravened the terms of our loan agreement but I was ok with this due to the council tax, but thought it odd that she hadn't mentioned this outstanding council tax debt to me.

She did not re-establish the direct debit and has paid me a total of £700 since receiving the loan, with me having to request the money from her each month.

I resigned from my job in July so we no longer see each other at work, but until this morning we were facebook friends and were in touch this way. I have been trying to contact her to see if she was in a position to make the payment due on 31st August, but she hasn't responded to my messages and has now "unfriended" me on facebook.

I can't believe that someone I thought was a friend would behave in this way; I have been nothing but generous and understanding with her. As she is not responding to my attempts to contact her to discuss an amicable way forward, do you think it's unreasonable to take legal action against her?

Would appreciate your views please.

OP posts:

Original poster

airedailleurs · 04/09/2014 15:41

I was charging a small amount of interest, about 5%, but the loan agreement form allowed for this and calculated the repayments accordingly.

she actually asked me to be a guarantor for an amigo loan initially, so thank God I didn't agree to that!

OP posts:

EhricLovesTheBhrothers · 04/09/2014 15:56

Fuck me. You've been taken for a mug my dear, sorry. I doubt you will see half of that money again. Expensive lesson to learn.

pluCaChange · 04/09/2014 16:17

Is "amigo" the name of one of those "payday" loan shark companies?

Original poster

airedailleurs · 04/09/2014 16:35

plucachange yes it is...

OP posts:

sleepyhead · 04/09/2014 17:13

Oh dear . I can see why you can't write that off.

Unfortunately legally there's not much to be done (which is why loans to people with poor credit come with such punishing rates of interest).

Keep trying to contact her.

LIZS · 04/09/2014 17:23

are you sure she didn't put you down on an Amigo loan too ? Is her hardship genuine or is she using it to fund a lifestyle at her creditors' expense.

LadySybilLikesCake · 04/09/2014 17:34

You can't charge interest on this without a consumer credit licence. I also think this amount is too high for the small claims court, so it looks as though you'll need a county court to sort this for you. I'm just looking for a link.

LadySybilLikesCake · 04/09/2014 17:35

Oh, my bad. I'm sorry, the limit is 10k www.gov.uk/make-court-claim-for-money/going-to-court

LadySybilLikesCake · 04/09/2014 17:36

Only the court can award interest. You can claim the cost of filling from her too.

I hope you get it sorted.

Original poster

airedailleurs · 04/09/2014 18:41

I'm really not bothered about the interest, I just want her to cough up!

Yes I can go through the small claims court with this amount, I checked.

Have just emailed someone in a managerial role at work who may be able to mediate, will wait to see if she agrees to help...

Thanks so much for all the responses anyway

OP posts:

Original poster

airedailleurs · 04/09/2014 18:42

LIZS no she couldn't have put me down for an Amigo loan as I would have had to sign something and didn't do it...

OP posts:

rainbowinmyroom · 04/09/2014 18:48

How sad. I doubt you will see any of the money.

MiscellaneousAssortment · 04/09/2014 18:56

Oh dear, I have a feeling you'll not see much of that money again. I'm afraid that's why you should never loan people larger sums than you can afford
to write off. Especially people you don't know very well, as you have to ask, why dont their actual friends help out? But sorry, not much use me going on about that now! Sorry.

HaPPy8 · 04/09/2014 19:03

Have you phoned her to talk about it then and ask where the august payment is? Your OP makes it sound like facebook was your only method of communication and she deleted you.

Original poster

airedailleurs · 04/09/2014 19:05

but won't the court force her to pay?

OP posts:

LadySybilLikesCake · 04/09/2014 19:11

The court would issue an order. If she doesn't pay then you'd need to go back to the court to get it enforced via the bailiffs. If she doesn't pay them, they will remove her goods. If she doesn't have enough to cover the costs they will contact you.

clam · 04/09/2014 19:12

Let's just hope she didn't forge your signature!

Original poster

airedailleurs · 04/09/2014 19:13

I have her office, home and mobile numbers, and her work email address. I sent her an email today knowing that she wouldn't reply, just so she doesn't forget me ;-)

OP posts:

queenofthepirates · 04/09/2014 19:14

If possible, I would try and squeeze her to pay you back without court. I lent a 'friend' £500 and ended up going into the small claims court. I got awarded the princely sum of £5 a month so I should see the final sum plus interest sometime in 2022.

PenisesAreNotPink · 04/09/2014 19:18

It's clear she can't afford to repay you.

If you take her to court she will have to pay at a rate affordable to her taking into account her outgoings and current debts.

That might mean that she repays you at £5 a month forever.

If you're ok with that then take her to court.

She's clearly in terrible debt trouble and can't afford to repay you.

It's probably not personal though, she can't prioritise your debt over council tax or becoming homeless.

Original poster

airedailleurs · 04/09/2014 19:22

The problem is that in my presence she has bought bottles of wine in the pub, and I know that she spent about £100 on concert tickets for a friend's birthday. I'm sure she could afford to repay me if she learnt how to control her spending to keep within her means...and even if she is completely skint it doesn't justify her avoiding me as she knows I want to help her!

OP posts:

Original poster

airedailleurs · 04/09/2014 19:24

and I don't even mind if she repays me very gradually, as I don't really need the money at the moment, it's just the principle!

OP posts:

pluCaChange · 04/09/2014 19:48

If she's trying to "buy" affection/ regard with ridiculously over-the-top gifts like concert tickets, you've got to stop being so nice and eager to help her. Make her want to placate you, and bloody pay you back!

pluCaChange · 04/09/2014 19:51

Or, more sinisterly, perhaps the concert-tickets are a loss-leader, softening up someone else to be touched for some money!

Original poster

airedailleurs · 04/09/2014 20:27

the person she bought the tickets for doesn't have any money either, so I don't think it's that...

OP posts:

Flip

1 2 3 4 5 6