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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70516
Experience:  Over 5 years in practice
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Several years ago I lent £6000+ to someone who seemed reliable

Customer Question

Several years ago I lent £6000+ to someone who seemed reliable but who has since stopped making repayments. I had a signed repayment agreement in writing.
Submitted: 2 years ago.
Category: Law
Expert:  Jo C. replied 2 years ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
How many years ago please?
Customer: replied 2 years ago.

Dear Jo,

The original loan was made in 3 parts in 2010 for £6200.

The text request for re-establishing repayments was made in February 2013 and the recorded delivery letter was sent in October 2013.

Expert:  Jo C. replied 2 years ago.
Ok. That is still within time then.
Is this person working or does he have assets?
Customer: replied 2 years ago.

He was working as a freelance, I think, in the plumbing and heating trade when I made the loan and had done several jobs for us. Subsequently he did a piece of building work for us for which I allowed him £200.

I don't know about any assets as I think he lives with his parents or other relatives.

Expert:  Jo C. replied 2 years ago.
Thank you.
Ultimately if he will not pay your only options are either to sue or to write the money off.
You are still in time to sue although probably you do need to get on with it. The loan was only in 2010 and so you have until 2016 to issue.
If he is in work then he will be worth suing.
This is £6k so it will be quick and cheap to issue against him. You can do so here
www.moneyclaim.gov.uk
It is probably a good idea to send him a letter before action giving him 28 days to pay before issuing though to protect you from costs.
Can I clarify anything for you?
Jo
Customer: replied 2 years ago.

Can you give an outline of a suitable letter giving notice ?

PS I will not be able to stay in contact for some time now as I am about to take my wife to an urgent doctor's appointment.

Expert:  Jo C. replied 2 years ago.
Letters before action are nothing formal.
Just say that you believe he owes X amount. If he does not pay within 28 days you will issue against him at the small claims court and claim costs and interest.
Jo C. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Hello Jo,

Would you advise I ask for him to re-start regular repayments of say £50 / month or just simply give him 28 days to pay what he owes or face proceedings against him for recovery through the small claims court ?

Regards Michael

Expert:  Jo C. replied 2 years ago.
That choice is yours. Why not give him the alternative?
I would ask for it by standing order to save this problem again. Also say that if a payment is missed you will issue proceedings for full amount without further notice
Customer: replied 2 years ago.

Hi Jo,

I would very much appreciate your comments and/or advice on the following draft letter:

Although the balance owing in June 2010 was £5758.50, interest at the agreed rate of 2% p.a. has since then increased the balance you owe to just over £6200.

I hope you will agree that I have been very patient in this matter, and I now ask you to make repayment in full within 28 days or to arrange to start making regular repayments of at least £100 per month by Standing Order. I’m sure I don’t need to point out that if you can make some large lump sum repayments it will significantly reduce future interest.

Please give this your urgent attention . If you do not pay within 28 days I will issue proceedings against you at the small claims court and claim costs and interest. Please also be advised that if you opt for regular monthly payments and a payment is missed I will then issue proceedings for the full amount without further notice.

Expert:  Jo C. replied 2 years ago.
I think that letter does exactly what you want it to do.
I suggest that you give a date deadline so that he knows when it expires.
Customer: replied 2 years ago.

Thank you Jo.

The date deadline is a very helpful suggestion as it gives complete clarity.

Regards,

Michael

Expert:  Jo C. replied 2 years ago.
No problem.
All the best.