Lending money to a friend.

[steampowered]

I did not gift the amount..

 

Yes. The bit that is treated as a gift is his agreement to acknowledge that the amount he signed for is the correct amount. If there is uncertainty about what the correct amount is, for that agreement to be binding you would need to have offered something in exchange for that agreement.

 

The agreement is still good evidence though.

[Consumer dude]

The letter from him requests me to please disclose in 30 days proff of credit card statements and Bank statements to this amount. It then goes on to state that should this information not be forthcoming in 30 days it will be assumed the matter is closed. How could I respond..

Edited October 19, 2013 by Consumer dude

[steampowered]

If you do not have the evidence, I think the best response would be to write back enclosing a copy of the document, and go ahead and issue court proceedings if no resolution is forthcoming.

 

You can provide whatever evidence you have but there is no obligation to do so until you reach the disclosure stage of court proceedings.

[Consumer dude]

There is no obligation legally at this stage then to provide any other information. His letter that stated if I didn't provide then he assumes that is the end of the matter doesn't really mean anything does it ?

 

I have already said that he could pay by installments. In this reply, should I give a deadline for him to start making payments before a notice before action ?

[steampowered]

Yes, he can assume what he wants. He can't stop you from issuing court proceedings.

 

You can put in the letter whatever you think is sensible. A standard letter would say court proceedings shall be brought in 14 days if an acceptable response/proposal is not received.

[Conniff]

This has been going on since February and you have done nothing about it except make a very long thread about nothing.

 

 

You have been told umpteen times what to do, why don't you just tell him he has xx days/weeks/months to pay it or you will take him to court. Just uming and aming is getting you nowhere.

Edited October 19, 2013 by Conniff

[Ganymede]

There is no obligation legally at this stage then to provide any other information. His letter that stated if I didn't provide then he assumes that is the end of the matter doesn't really mean anything does it ?

 

 

 

He could make an application to Court for pre-action disclose of the documents you have under CPR 31.16. This is unlikely as the usual position is that he would have to pay your costs of the application. This can be reserved if you are deemed by the Court to be acting unreasonably.

 

I agree with the others that say just get it issued and be done with it.

[Consumer dude]

I have been in shock, long term friend and then betrayal. Its not easy but now its time to focus..

[Consumer dude]

Getting back on track with this. Am working on a Notice before action letter. What should such a letter state and is there any legal obligation at this stage to confirm how the amount that is owning was worked out. Many thanks..

[steampowered]

Refer to http://www.justice.gov.uk/courts/procedure-rules/civil/rules/pd_pre-action_conduct#A, Annex A.

 

2.1 The claimant’s letter should give concise details about the matter. This should enable the defendant to understand and investigate the issues without needing to request further information. The letter should include –

(1) the claimant’s full name and address;

(2) the basis on which the claim is made (i.e. why the claimant says the defendant is liable);

(3) a clear summary of the facts on which the claim is based;

(4) what the claimant wants from the defendant; and

(5) if financial loss is claimed, an explanation of how the amount has been calculated.

2.2 The letter should also –

(1) list the essential documents on which the claimant intends to rely;

(2) set out the form of ADR (if any) that the claimant considers the most suitable and invite the defendant to agree to this;

(3) state the date by which the claimant considers it reasonable for a full response to be provided by the defendant; and

(4) identify and ask for copies of any relevant documents not in the claimant's possession and which the claimant wishes to see.

2.3 Unless the defendant is known to be legally represented the letter should –

(1) refer the defendant to this Practice Direction and in particular draw attention to paragraph 4 concerning the court's powers to impose sanctions for failure to comply with the Practice Direction; and

(2) inform the defendant that ignoring the letter before claim may lead to the claimant starting proceedings and may increase the defendant's liability for costs.

[Consumer dude]

ADR meaning alternative dispute resolution (hope I've got that right) well could I send information to him regarding this procedure as a alternative to court action, as n idea that he will agree. If he does not wish to agreed I can just inform him that I will issue a claim without further reference. The purpose if this hopefully will put me a good light ant not wishing to be confrontational but reserving my right to legal redress. Does my idea sound ok..

[steampowered]

Honestly, I think this ADR stuff is a bit pointless at the small claims level. Its more relevant where you have some kind of technical dispute which is best resolved by an independent expert rather than a judge. In reality it doesn't really matter what you say about ADR in the letter before action, its fine to just say you don't believe ADR is appropriate. You can always agree to the small claims mediation service when the directions questionnaire comes through (but don't have to).

[Consumer dude]

Update: Been to the library and have drafted a template up. I have made the claim that I supported friend with money by way of transactions electorally and via way of paying in book into his account. Other help was give by paying certain bills by pay-point card and credit card. I have mentioned the letter is in compliance with the practice direction on pre-Action conduct. I have not asked him for any documents at this stage, but may I do so at a later stage ? Have I missed anything ? I got the template from the which consumer site..

[steampowered]

The letter sounds fine. The important point to make is that he agreed to pay the money back at the time it was received.

 

 

In small claims track the usual order is that the parties must disclose the documents on which they intend to rely at the hearing before the hearing.

[Consumer dude]

He agreed he owes me the money stated so all he had to do really was offer an amount per month that he could afford but not offering anything has really made we thing he is trying to weasel out of paying. Its all very sad when friends betray you but it does happen. Hopefully I will learn something from this..

[Consumer dude]

Went back to library. Letter looks good. Printed off, Oops forgot date, I can add that in ink, that won't be a problem will it ?

[steampowered]

Thats not a problem

[Consumer dude]

Update on this. Notice before action letter was signed for on 17/Dec/2013. No reply from NBA..

[steampowered]

Thanks for the update. Since they haven't responded to the LBA, if you want to take this further you will need to issue proceedings.

[Consumer dude]

Is there a time limit to issue proceedings..

[steampowered]

6 years from the date of the breach of contract. But the longer you leave it the less convincing your evidence will be.

[Consumer dude]

I just wonder what constitutes a contract. As it stands, I have a signed confirmation that he owes me the money. At this stage which I have already sent a NBA and to which I have had no reply, is the idea now to repeat on MCOL the out line of the claim and leaving the finer details (how it was worked out) until a hearing has been confirmed. Many thanks..

[caro]

You just need to put that you lent Mr A Hole £xxxx, which he has agreed in writing. You have followed pre-action protocols and have tried to settle the matter without going to court, but Mr Hole has failed to make any payment or reach any agreement to pay.

 

You now claim £xxxx, plus court costs of £xx and £xx section 69 interest at 8% from date (perhaps the date of the IOU if that's on there), and xxp per day until settled.

 

It doesn't have to be complicated. The small claims court is intended to be simple so that ordinary people can use the service to sort out disputes.

[Consumer dude]

Just to confirm then, is my next stage to repeat on MCOL what I have already stated in the NBA, and only to explain how any amount was worked out when a hearing is known ?

[caro]

MCOL yes, but I think perhaps you should be prepared to include a schedule listing the amounts if you have it. See what the more legally knowledgeable think.