Hi All
hope i have posted in the correct section. Am hoping for some advice regarding money my Mum has lent to someone. The person involved has borrowed a large amount around 6 years ago and lied about what they wanted it for. They said they had brought a flat and needed it to do work to the property. They said hey would pay back when they sold it. Now the problem is the money has always been loaned willing by my Mum and they have never stolen it. We don't think they did have a flat. They have paid a few small amounts back but now just keep making excuses all the time. They did sign a letter stating they owe the money. I have spoken with a friend who thinks that although they have borrowed the money by lying about what the money was for, they have been lent it willing by by Mum. They only ever said they would pay the loan back not that my Mum was a partner in the so called flat. The problem is the person does not have a penny to his name, no property nothing. According to my friend the only option is a solicitor has the police would not want to know and seeing that he has nothing would we be throwing money away trying to sue him.

Any advice would be very welcome.

Thanks

Hi, unfortunately with private loans it is down to both paties to agree a pay back scheme as no contract was signed, even with a contract it is very difficult to recover outstanding monies, it is not illegal to owe money. A small claims court will honour a contract if one was signed, that is why loan sharks result to bullying and threats to get their money back. you could try the Citizens Advice, it is a free organization and they are excellent.

Hi
Thanks for the reply. My friend also said to try the Citizens Advice which I think will be my next port of call. I had a feeling that even though he had lied about buying a property and wanting the money for that he had not actually broken the law.Just makes my blood boil as I know he has nothing what so ever to claim against.

Thanks again though

Chippy

Hi Chippy,
I don’t think the fact that he did or didn’t buy a flat is not very important. He did borrow money and you have a letter confirming that, but the problem as you say, he hasn’t got anything to his name. I agree that going to Citizens Advice Bureau is worth considering, you may be able to arrange a payment plan, possibly through the court.