friend wont pay

[zingara]

4 years ago i took out a loan to pay off my friends debts, they have since divorced + I am now left paying the loan. They have never made regular payments so I have had to keep it going. The bank knew about the set up. I would be able to proove that I gave them the money and that they did make payments into my bank for a short while. can I take them to the small claims court? could I pass this on to debt collectors? could some one please advise me what I should do for the best? (never trust anyone is good advice)

[Didwot]

Some friend! First of all you should write to them setting out the facts in simple terms and asking them to repay. Give them a reasonable period to respond, sy 14 days. If they do not respond you can issue court proceedings yourself, but you may find it better to us a solicitor. The claim would be started in your local County Court. If the amount owed is less than �5000 and your fiend files a defence then it will be alllocated to the Small Claims Track. The primary consequence of this is that there is very limited provision for payment of your costs by your oponent if you win (and vice versa). If it is more than �5000 and your friend defends then it will be allocated to the Fast Track where the usual rule on costs is loser pays. You can find out where your local court is at the COurt Service Website, or you clould use the Money Claims Online section of that site. Debt collectors can so nothing that you can not do.

[Andy008]

why the hell did you take out a loan to pay off their debts?

If they owed money that was their problem, not yours.

[ursula62]

I doubt you have any redress in court, despite what Didwot says.  The loan is in your name, therefore the banks will contact you about payment. What you spent the money on is of no concern to them I'm afraid. They don't care that you lent the money to someone else.

I'm in much the same boat. My ex left me with massive debts.The banks' attitude is that the credit cards were in my name, and he was additional cardholder, therefore they come after me. He's also declared himself bankrupt so he doesn't have to pay me a cent.

The bottom line is "Never borrow from or lend to friends". Hard lesson to learn but one lesson is usually enough.

[Moog]

I suspect that unless you have a signed agreement between yourself and your "friend" then you'll struggle to win any of it back in court, it pretty much comes down to your word against theirs, I suggest you visit the CAB

[erimus1]

Never lend to friends unless you have their gold Rolex as deposit! - First thing's first - do either have a house, and if so, did they have it when you took the loan out??? - If the answer is yes, lodge a monetary interest charge in the property - this will stop them from having full control of the property, including selling it without your consent - good one to hold them over - you agree to remove the charge upon receipt of the owed money.

Problems can arise with contracts between friend and the such, especially when there are no written or formal agreements. One thing you should bare inmind is that, should you choose to take your friends to court (joint defendants), the burden is on a balance of probabilites, and isn't that difficult to prove - witness statements, bank statements, check stubs can prove to be a very strong case.

Another thing - what the bank did was actually against banking pracices and unethical.
Try sending a solicitors' letter giving the requisite 7 days notice first - always pays to use an expensive city solicitor for the letter - theydon't know that, should you have to take them to court, you are going to be representing yourself.
Good luck, and don't do it again.

[El D]

Their actions in paying off the first few payments could constitute acceptance of your verbal contract through performance.

[zingara]

Thank you to all that have answered my question.