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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70197
Experience:  Over 5 years in practice
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My old friend which I knew and helped is partially

Customer Question

My old friend which I knew and helped for years is partially blind and she uses to give me money to help on so many times which added up in the last 14 month to 6k she transferred to my account last November £3425 and in Feb issued in her bank a cheque for 6500 to help me as a deposit to buy a house. Lately I was concerned so I decided to return the cheque money to her account and £1700 from the £3425 amount asked her to sign a friend loan agreement for the 6000k to include all the cash she gave me plus the £1700 left over as I did spend the money I took from her on different occasions. She is lonely and had no relatives her daughter neglected her for years. She had a dementia test after six days we signed the contract and her capacity was successful and she passed the test. I am concerned as she is getting now very old and sometimes repeats the question twice and regret taking the money which she always say it was to help me paying my rent .Please can you help me in this I am so worried.
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.
What would you like to know about this please?
Customer: replied 2 years ago.

I was very upset as one of her neighbours which I knew from her liked me and visited me , looks like my friend discussed with her my financial issues and before she left son her first visit she she left me 100 as a help which I refused but she insisted me to have. Next time she visited me with her family she also left 100 which I refused strongly and said last time I will accept this I do not ant a help and refused her offer to help me in the deposit for a house . In the nest week I saw her son and he started telling me that he needs his mums money back or he will go to the police I was shocked so I went back and gave him his mums money back. But this stressed me despite his sister sent me an apology letter for his strong behaviour and his worries about his mum as she felt that she should help me despite I never asked for help. This really worried me and upset me so I decided to return all the money my friend used to help me with in the last year as I always help her , read her emails , pay her bills where she gives me money at the same time to pay and return for her the receipt as when she used to go to the bank and withdraw her money I used to go with her because she trusts me and the lady at the bank gives her the money in patch of 20's and 10's to know and count the amount when she is paying money to other people. She uses to withdraw large amounts not to go each month. I am a full time worker and earns a high salary but all goes rent as my credit rating can not be accepted to rent privately so I fear to move and this is why my friend helped me as she used to say you always helps me and look after me. Iam so stressed in case all this to be misunderstood despite my friend is in her full mind and always say I never asked her for money she wants to help me. My concern she is getting very old now and I need to protect my self as my intention was never ever to take money even if she did not I will always help her.

Expert:  Jo C. replied 2 years ago.
OK.
So what is your question about this please?
Customer: replied 2 years ago.

Have I done something wrong , what will happen if i was questioned about the money, is the loan agreement between us verifies the money she gave me . The lady was in her full mental capacity when she used to give me the money. Do I have to report the money i took despite it is now agreed as a loan to tax revenue. I am so stressed about this

Expert:  Jo C. replied 2 years ago.
Not on your version of events.
The risk here is that she will say something else and if she is believed then that is problem
If you have a written loan agreement then that is helpful. I suppose she could argue that she didn't understand the loan but that makes very limited difference really if you are repaying the money.
If you are repaying it then you don't need to report it to the revenue. If you are not and it is a gift then you do.
Can I clarify anything for you?
Jo
Jo C. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

She always refuses even for me to return the money , is it better if I can record our conversation on this as she is partially blind. I do not think she will change her mind as she said that Martin the neighbour is mentally ill and I should not listen to him and he overheard her saying this. The money is paid direct debit monthly to a bank account she finally gave me and a copy of the statement order I managed with my bank with the copy of the agreement in her locked saved cabinet.

Are you saying that the loan agreement will cover this I can get a witness to verify this.

Expert:  Jo C. replied 2 years ago.
You might have more problems if you are not repaying it. This is a vulnerable person and you might struggle to convince any fact finder that this was a gift.
If you are repaying it and you have a loan agreement then that is helpful.
Customer: replied 2 years ago.

I am paying it the payment will start from tomorrow and as I mentioned I have set up a monthly standing order for these payments to go on monthly terms.

Can I video a conversation on the mobile as she always say to me you are stupid you are doing this the money I gave you was a gift and help.

Shall I get a witness to sing the agreement after I read it again for her.

I am really not sleeping from this despite I do not think she will change her saying

Expert:  Jo C. replied 2 years ago.
Yes, you can do that but I'm not sure a video really helps you.
If you can get a witness to confirm it there is no need.
Customer: replied 2 years ago.

Thank you for this

Tomorrow I am going to read the loan in front of her carer and let the carer sign as a witness on my paperwork

so you are saying that if loan agreement is there and I am paying back her the money monthly then I am legally protected bearing in mind that her GP tested her mental capacity and made her a dementia test and she passed.

Expert:  Jo C. replied 2 years ago.
It is not quite right to say that you are legally protected but you are in a fairly safe position as it no longer look sinister.
Customer: replied 2 years ago.

I am a loan to pay all the loan agreement also the friend who cares signed the agreement as a witness , will this be now over as I can not sleep from my worries . My intention was not to harm the lady always insisted that she is helping me and the money was not taken as a lump sum . I am so stressed about this and can not sleep for the whole story to be misunderstood. I have learnt a big lesson in my life as I was not aware of such things all I thought that the lady is in her full mental capacity and everybody knows that she is very keen on her money.

Expert:  Jo C. replied 2 years ago.
As long as you are repaying it you are in a fairly safe position.
Customer: replied 2 years ago.

Thank you so much for your help I am paying it all now to take this out of my life as it really stressed me so much. I even today opened the loan discussion in front of the carer and said I need to pay it all back next Tuesday and cancel the monthly standing order . She said I do not know why you are repaying keep them they were a gift but I insisted I do not need her help to support her I will always help her when I can.

This drama really made me a near nervous breakdown again you were very helpful many thanks for your help in this. Your advice worth the money I paid.

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

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