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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25440
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Ill try to summarise quickly. My sister lent me and my partner

Resolved Question:

I'll try to summarise quickly. My sister lent me and my partner (at the time) a sum of money a few of years ago and we agreed between us who would be paying back what proportion, with a repayment plan on a spreadsheet.

My partner and I then split up, but for around 18 months he continued happily to make the payments, but the payments were going through me, although he used a payment reference on my statements quoting my sister's name. He wrote to my sister requesting to pay the money directly to my sister but we were nervous about giving him her bank details so politely refused his request. In his letter he totally and completely stated that the debt was his and that he fully intended to repay the money.

In June last year he stopped making the payments, my sister wrote a polite letter to him which received no response, which she followed up with an NBA. His response to the NBA was that he had never owed any money to her and that he hadn't made any such payments to her - which I'm guessing is technically correct.

I now want to take him through the MCOL procedure but I am confused, based on the fact he's never made any payments directly to her i'm not certain whether this defence has any merit?

Secondly, as he was making the payments to me should it be me or my sister that is chasing him for the money.

Just to clarify, the original cheque from my sister was made payable to him so we could trace that through the bank if required, I have also kept the original email from him to prove it came from him.

Please can someone help?
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

You mention that originally your sister loaned money to you and your partner and that you agreed who would repay and when. Was there any written loan agreement? From what you say the cheque was made to your partner not you but the loan was from what I understand made to you jointly?

Joshua :

Does your sister still have the letter your partner wrote her you refer to?

Customer:

No unfortunately as it was her helping out her family there was no formal agreement. He did go into a lot of detail (ie amounts) of who owed what in his letter though, which I have a copy of. The amounts all tie up to what we agreed and with what money he has been paying to me (with her name as a reference on it). I was in an IVA at the time of the loan and she was giving me the money to pay it off, as well as to use the rest to ay other debts.

Joshua :

Thanks

Joshua :

Sorry for the short delay. Do you agree with the terms set out in the letter and does your sister still have a copy? If you do agree, essentially how much do you owe your sister and how much does your ex still owe? Does your sister wish to pursue you for the money you owe or just your ex at this stage?

Customer:

The terms of letter were exactly as we agreed and that we would both pay a proportion of the monthly repayment due to my sister for an agreed period. My sister has the email which she forwarded to me so I also have the letter. My sister is not chasing me for the money, just my ex, we get on very well. We were happy for everyone to stick to the original agreement but now as he is denying all knowledge we want to make a claim for the amount still owed by him, which is under £5k so able to go through MCOL.

Joshua :

Thanks. How much roughly is owed by you according to the terms of the letter?

Customer:

The balance I owe as of today is £7800, the balance he owed after his last payment in June 2013 was £4830. In the letter it states more about the monthly payments rather than the total figure. He writes in the letter that 'out of the £200 per month £75 is coming from me' - unfortunately his figure was incorrect and he was only paying £70, which is the correct amount agreed.

Customer:

Although he did state in the letter that out of the £20,000 borrowed, £7500 was to pay credit card debts in his name - which again is incorrect, it was £7000.

Joshua :

Thanks. From what you say your sister is the person that has the right to claim back monies from your ex. From what you say the loan cheque was made payable to him and therefore in the absence of any evidence to the contrary your sister could seek to claim the money back from him as she may find it challenging to establish that she lent you any money if you denied it but since you broadly accept that you also owe part of the debt this is largely academic.

Joshua :

Accordingly your sister can consider issuing proceedings against your ex if he refuses to pay what remains owing and from what you say she has excellent evidence in respect of his debt namely the evidence of the cheque paid to him and the letter he has written. It makes no difference that he has paid certain monies through you. Providing you have passed these on to your sister this counts as repayments from your ex to her.

Joshua :

Ideally your sister would prepare a simple spread sheet detailing the balance she is claiming as owed by him and deducting such repayments as he has made showing the balance remaining. This would form the basis for her claim as above.

Customer:

So is his total denial of the debt not likely to stand up in court? Also, this has been a big problem for my sister geetting involved in all of this mess when all she did was kindly lend us some money. I don't really want to start to have to get her going through this process and aggravation, so am I able to process the MCOL on her behalf and how do I do that?

Joshua :

The fact that he has received a cheque from your sister is on its own evidence of a loan. Coupled with his letter admitting liability I cannot see how a subsequent denial would stand any chance of being successful. On top of that he has made payments to your account which you have passed on to your sister which evidence repayments. Any one pieces of evidence evidence a loan and the three together would on the face of it appear to be overwhelming evidence of a loan arrangement between him and your sister.

Joshua :

Your sister would need to issue proceedings herself but there is nothing stopping you doing the administration on her behalf with her consent.

Joshua :

The simplest way to do so is by using the courts online issueing service in your sisters name and using her address (with her consent - consider asking her for an email to show that you had her consent) www.moneyclaim.gov.uk

Joshua :

Is there anything above I can clarify for you any further?

Customer:

Just one thing, do I get a copy of this transcript emailed to me or do I need to cut and paste into another document?

Joshua :

You can either copy and paste it into a document or I can ask customer services to assist you and email it to you. It will also be available from your customer home page on the justanswer site. Would you like me to ask customer services to assist with this?

Customer:

yes please, and thank you very much for your help!

Joshua :

A pleasure. I will contact them for you. If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Customer:

That's everything, thank you.

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