How to recover a debt owed by acquaintance?

sheena12

HI, My cousin foolishly lent about €40K nearly 2 years ago to an acquaintance ( not a close one either!) who's business was struggling. The guy who borrowed the money rings every couple of weeks to say he is paying back the money etc but never comes up with the cash and there's always an excuse. My cousin could really, really do with the money and is at his wits end as to how to get it back as he just handed this guy cash, there is no written record of it anywhere. Obviously my cousin calls this guy and keeps trying his best to get the money back but to no avail. The guy he lent the money to is now is a good situation financially and is definitely in a position to pay back the money. What can my cousin do now? he definitely needs help in recovering this debt but how does he go about this? Any ideas out there? Thanks

sirreally

Solicitor

sheena12

THanks Sirreally for the advice, but is there much point in going to a solicitor if there is no evidence of a loan having taken place? If it came down to it, its just my cousin's word against the other guy.

feelgoodinc27

Your cousin should record any conversations he has with the guy he lent the money to.

ResearchWill

sheena12 wrote: »

THanks Sirreally for the advice, but is there much point in going to a solicitor if there is no evidence of a loan having taken place? If it came down to it, its just my cousin's word against the other guy.

There does not need to be a written record of the loan. In many cases such as this, the evidence is just one person saying the money was lent. For 40K go to a solicitor.

sirreally

sheena12 wrote: »

THanks Sirreally for the advice, but is there much point in going to a solicitor if there is no evidence of a loan having taken place? If it came down to it, its just my cousin's word against the other guy.

A solicitor should provide a free consultation for this, where they can advise on the legal position, followed by their fee proposal. This is a serious matter that has to be handled correctly, so don't accept advice from anyone except for a solicitor.

PM me if you want me to put you in touch with a good solicitor who will offer a free consultation on this.

TheCostumeShop.ie: Ronan

I'd be slow to go to a solicitor in terms of getting direct involvement, if there's one way to turn a good relationship bad it's to send a solicitors letter. I think the person should arrange a meeting and explain his situation, that he really needs to get the money back and try to arrange a payment plan that will be stuck to. Explain that he's made commitments based on getting the money back in time.

Have a template agreement to repay drawn up and just fill in the blanks (frequency, amount etc) and then have the two parties sign the contract. This will help make it more official and there's some magic about people making commitments on paper that makes them more likely to follow through. If asked why he needs it say he needs to show his bank manager his financials, as passing the buck a little will soften the blow.

Another option that might be worth considering would be to do barter. Say this guy sells a widget that he buys in for €4 and sells for €10, your cousin could agree to take 10,000 units or an agreeable amount and sell them on, to clients other than the business currently sells to. For example do a groupon deal of widgets for €4 down from €10. Obviously not applicable to all businesses but I know restaurants that buy stuff and pay in gift cards instead of cash, because in this economy cash is limited.

sirreally

@Ronan - I have to ask, did you read the post fully before responding? Your suggestions may be helpful in certain situations, but this doesn't look like one of them.

sheena12 wrote: »

...lent about €40K nearly 2 years ago to an acquaintance ( not a close one either!)

There's no good relationship there.

sheena12 wrote: »

The guy who borrowed the money rings every couple of weeks to say he is paying back the money etc but never comes up with the cash and there's always an excuse.

He's just stringing him along and getting away with it. That's deplorable behaviour.

sheena12 wrote: »

My cousin could really, really do with the money and is at his wits end as to how to get it back

Jesus Christ, this shouldn't even need to be said.

sheena12 wrote: »

The guy he lent the money to is now is a good situation financially and is definitely in a position to pay back the money.

What??! GIVE HIM HIS F*&KING MONEY BACK!!!!

This scumbag needs to pay up now or face legal proceedings. His house, his assets, his business...everything should be on the table until he pays what he owes.

TheCostumeShop.ie: Ronan

Yup I read the post. Yes I agree this fella isn't being nice. Yes i understand we don't have all the facts.

However, put down the pitchfork for a second and consider the two scenarios:

1. Legal letter is sent, guy gets his back up. This person "handed this guy cash" according to OP. Something is very wrong here to start with and this cousin does have some responsibility for his stupidity. Who has this sort of money in cash, there is no trace of the loan. If you go down the legal route you are open to getting the 'What Cash? I don't remember that. Have you any proof you gave it to me, why did you have that much cash and hand it to a stranger, I don't know you. Maybe it was 40k for that chocolate bar I gave you (afterall consideration doesn't have to equal value of item). My memory isn't great."

2. You meet up try to be amicable, get something in writing which confirms there was a loan made, the money is still owed and the person is committed to re-paying him. If this ends up down the legal road later at least you have a leg to stand on.

sirreally

...I still think a solicitor is best placed to advise on this very serious matter.

unnameduser

I'd second Ronan's suggestion - if that didn't work then I'd suggest a solicitor.
It sounds like your cousin is being too soft with the guy. If they got tough it might be the kick in the ass to get him to start paying it back.

sirreally

And what if the amicable agreement in writing proposal doesn't work? What if the guy is then tipped off (as he obviously would be) that the next step will be legal action, and decides not to engage any more? What if this action leads to the person managing to avoid giving some clarification on the debt that he may otherwise give, should the person follow proper legal advice and take the correct steps?

Talking to a solicitor right now is essential. Not just to send a threatening solicitor's letter, but to get advice on what the legal position is right now, and on exactly what needs to be done in order to secure the position of the injured party.

Why are people giving advice on something that is so obviously a legal matter? Would you give medical advice on a forum? It's so irresponsible. How is this thread even still up here??

gigino

they say they only winner in a legal dispute is the solicitors

sirreally

Aaaand that's a wrap.

debreall

It gives me a lesson then...

The Corinthian

feelgoodinc27 wrote: »

Your cousin should record any conversations he has with the guy he lent the money to.

Legally, doing so without their consent is putting yourself on thin ice.

sheena12 wrote: »

THanks Sirreally for the advice, but is there much point in going to a solicitor if there is no evidence of a loan having taken place? If it came down to it, its just my cousin's word against the other guy.

Unless your cousin gave him the money in a suitcase, as cash, there's a little bit more than simply his word against your cousin's. If it ever went to court, your cousin would want to be able to demonstrate:

• Money changed hands.
• It was a loan.
• The terms of the loan.

A record of the cash transfer would at the very least show that money changed hands, after which you need to show evidence of why this money changed hands as the debtor could argue it was a gift or, more believably, an investment in his business.

Credible witnesses that could testify to conversations, written correspondence or emails that this was a loan (and the terms thereof) would be in your cousin's favour when building a case. Remember, he would have to present evidence too that it was not a loan, to counter this.

As to the terms, while ideally you'll have evidence of this too, the first two points are the most important, as lacking terms a judge would simply impose new ones.

I would consult a solicitor though. They will have a clearer picture of the options and what evidence would be required than some stranger on the Interweb.

However, I'd also agree that even sending a legal letter before your cousin has done their homework would strategically go against them. It may be possible to resolve this amicably (although I doubt it) and even if not, the longer your cousin has amicable contact, the more evidence they'll collect - to a point, naturally.

allaboutclicks

If your cousin is wary of going to down the legal route why not at least get some professional advice about it - you can talk to solicitors for free and in confidence at your local Free Legal Advice Centre - tell her to call 1890 350 250 and find out where her local flac is. It never hurts to know your rights.

shangri la

It would be interesting to know a legal way to record a conversation where he admits to owing the 40K while being recorded unknowingly just in case things turn sour and he decides to not pay back the loan.