My name is***** and I'm happy to help with your question today.
How much is outstanding?
The original loan was for £300k and there is about £80K outstanding. The loan agreement also included a provision for interest to be paid if he did not repay according to the agreed timetable. He had about 2 years interest free
There doesn't appear to be anything wrong with your claim. This is a debt which he agreed to pay and his complaint that the agreement was unfair is unlikely to wash with the court especially as he has made payments in accordance with that agreement. Also because you were not lending as a business the Consumer Credit Act, for example, does not apply, so his complaints of 'unfairness' seem to be a bit shallow in view.
Thank you. Will he also be required to pay the interest we agreed on which was 10% per annum calculated monthly on any balance outstanding against the repayment schedule? I should say again that the schedule was very fair to him. The agreement was signed in August 2011 and his first repayment wasn't due until 1/1/2013 (with the other half on 1/1/14. He has not met the payment schedule.
Yes, if the agreement provided for interest then you should claim at 10% per annum (the base rate is 8%). The fact that he made a payment under the agreement shows that he accepted the terms. Before you commence proceedings, however, you should send him a letter of claim giving him 14 days to pay. He will undoubtedly respond with excuses about 'unfairness' but you need to stand your ground. The letter ought to be drafted in such a way that he is given no wriggle room - you should state your case and give him 14-days to pay. If he fails to do so then you should commence your claim without further delay.
Thank you very much. The only other thing I can think of is that he will claim it's not his signature (which it is) or that somehow he was under duress. We were living together at the time, but I left after he repeatedly took money from our joint account to fund his business, despite us having a verbal agreement that he wouldn't do that. For the period when we lived together, mine was the only salary coming in and paid all our living expenses. Are any defences like this likely to wash with a court?
Is it possible he will claim the repayments he's made were not under this agreement?
I guess he could make all sorts of assertions about the agreement and will no doubt suggest there was some kind of "undue influence" at play. The trouble is predicting what he could some up with in his defence - so in order to minimise his avenues you need to spell out chapter and verse with supporting evidence how you came to loan him the money and have available to you any banking/transfer documents/emails if you have them or anything else that supports your contention that this was a bona fide loan. Judges are real people and know that defendants will come up with all sorts of excuses not to pay....but the fact that there was a relationship, a document was signed and he has paid you some money all points towards this being a genuine claim. Its unlikely that a person would go to such lengths to claim money unless there was some basis for it.
OK many thanks.
Two things you need to think about: 1. Legal costs. If he instructs lawyers and wins then the court could award legal costs against you. 2. Evidence. The Judge will want to see evidence corroborating your claim.
This is not a small claim - so beware of the pitfalls relating to costs. Also if you're unsure about the process it might be worthwhile employing solicitors to send the letter of claim and pursue the court proceedings.