Lending money to a friend.

[Consumer dude]

Is an oral contract legal ? I mean couldnt he try and say i gifted amounts to him. I wouldnt put it pass him..

 

I had sent an invoice/statement on the 28th/Feb/2013 requesting the full amount with 28 days. Would i be safe to calculate interest 28 clear days from that date. Having said that, i had offerd him a payment plan after that date. I dont want to compromise myself..

 

I have claimed that money became due on 04th/April/2013, which is at least a clear 28 days from the date that i had demanded the full amount which was on 28th/Feb/2013. 8% at a daily rate from that date until day of jjudgement ? Any ideas of the maths on that ?

[steampowered]

I covered chances of success already earlier in the thread. Oral contracts can be orally binding. If he says X and you say Y and there is no proof, the judge will have to make a decision as to who is more likely to be correct on the balance of probabilities. There are no guarantees to be had here.

 

 

Yes calculate interest from 28 days after the invoice.

 

 

Have a look at the MCOL form.

[AndyOrch]

To calculate the interest, you first need to work out your daily rate of interest. Using a calculator, do the following:

 

0.00022 × the amount of your claim – this gives you your daily rate of interest

 

You then need to work out the amount of interest you are owed up to the date you issue your claim. Count how many days have passed since the money became owed to you and multiply that number by your daily rate of interest.

 

You must write your claim in the following way:

 

‘The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% per year from (date when the money became owed to you) to (the date you are issuing the claim) of £ …(put in the amount) and also interest at the same rate up to the date of judgment or

earlier payment at a daily rate of £… (put in daily rate of interest)'.

 

Regards

 

Andy

[Consumer dude]

I am claiming 5600.00 plus the 210.00 for the MCOL claim, so I add interest at 8% on that total amount at a daily rate from the 04th/April/2013 (amount due to the date of my claim which I intend to be 10th/March/2014. Does this sound correct. Not sure I understand the 8% yearly rate though.

[mjt2013]

You should only claim interest on the unpaid loan itself and not the MCOL costs.

 

As for the 8% yearly interest just divide the amount of the loan by 100, multiply by 8 and divide by 365. That is your daily rate of interest based on a total interest rate of 8% per year. Then multiply the daily rate by the number of days since the money was due to be repaid.

[Consumer dude]

If I win, won't I get the cost of the claim back and if on low income, can't I pay reduced fees.

 

What's this 0.00022 rate then and how is this worked out..

 

What's this 0.00022 rate then and how is this worked out..

 

Bump..

[AndyOrch]

Thats how you work out the daily rate of interest as per above

[Consumer dude]

Thats how you work out the daily rate of interest as per above

 

Ok, just wondered why that rate. Many thanks..

 

You need to prove to the court that this person is legally required to pay back the money. Your current wording is not too bad but, reading between the lines, it does sound a bit like you are asking the court to make a moral judgment rather than a decision about legal obligations.

 

I think you need to bring out the fact that this was a loan and that there was a legally binding contract. I would go with something more like "From xxxx to xxxx the Defendant borrowed money from the Claimant. [insert a sentence about what was agreed at the time - was this an oral contract? What did the Defendant say he would do?]. On xxxx the Claimant issued a demand for repayment of the loan. In breach of contract the Defendant has not made any repayments. The amount outstanding is xxxxx. The Claimant claims (1) xxxxx, (2) xxxxx in interest at the statutory rate of 8% and (3) costs."

 

I don't think you need to go into details like how the money was disbursed and how you will prove the exact amount at this stage. These details can go into your witness statement which comes later.

 

Would be grateful for input if this looks better, need to just work out the intrest. Have i missed anything out at this stage ? Is the term undisclosed period a problem ? From an undisclosed peried, the Defendant borrowed money from the claimant. It was agreed at the time that the claimant would help out the Defendant by way of paying monies into his current account(s) and by paying cash via way of paying in book and other payments which included payments made to his gas and electric account and that the defendent would on demand pay back what was owned. This was agreed verbally and on the 28th of Feburary 2013 the claimant issued a demand for payment of monies owed. In breach of contract the Defenant has not made any payments. The amount outstanding is 5600.00. The claimant claims 1/ 5600.00 plus 2/ xxxx in intrest at the statutory rate of 8%..

[steampowered]

If you don't know the exact period then leave it out and just state the amount.

 

 

You should however be making an attempt to locate bank statements etc. if possible to prove what money was lent to him. A judge may be a bit uncomfortable issuing a judgment for a certain amount if no one knows how much is owing, though the signed document you have would be a good start.

[Consumer dude]

If you don't know the exact period then leave it out and just state the amount.

 

 

You should however be making an attempt to locate bank statements etc. if possible to prove what money was lent to him. A judge may be a bit uncomfortable issuing a judgment for a certain amount if no one knows how much is owing, though the signed document you have would be a good start.

 

The exact period is unclear at the moment, but will be working out how the amount was worked out with the period. As to date then, would you then say the short statement I have given (minus the term undisclosed period) is ok to at least start the proceedings off..

[steampowered]

Yes, I think it is enough to start the proceedings off. We will have to see where this goes, but it sounds like there may be a sizeable chance he won't even bother to respond in which case you'd get a default judgment.

[Consumer dude]

Yes, I think it is enough to start the proceedings off. We will have to see where this goes, but it sounds like there may be a sizeable chance he won't even bother to respond in which case you'd get a default judgment.

 

I am of course hoping he doesn't respond, but if he does, then I will deal with the next stage if and when it happens. I need him to receive the claim form so he can focus his mind. It will be be £210.00 pounds well spent. I will now tidy up the wording, post up the final result and pay the fee on the 10th of March when I have the money..

 

Would be grateful for input if this looks better, need to just work out the intrest. Have i missed anything out at this stage ? Is the term undisclosed period a problem ? From an undisclosed peried, the Defendant borrowed money from the claimant. It was agreed at the time that the claimant would help out the Defendant by way of paying monies into his current account(s) and by paying cash via way of paying in book and other payments which included payments made to his gas and electric account and that the defendent would on demand pay back what was owned. This was agreed verbally and on the 28th of Feburary 2013 the claimant issued a demand for payment of monies owing. In breach of contract the Defenant has not made any payments. The amount outstanding is 5600.00. The claimant claims 1/ 5600.00 plus 2/ xxxx in intrest at the statutory rate of 8%..

 

The Defendant borrowed money from the claimant. It was agreed at the time by both parties that the claimant would paid the Defendant by way of a loan monies online into his current account(s) and by paying cash via way of paying in book into same account(s) and other payments which included payments made to his gas and electric account and that the Defendant would on demand pay back was was agreed as owning. This was agreed verbally and on the 28th/February/2013 the claimant issued a demand for payment of monies owned. In breach of contract, the Defendant has not made any payments. The amount outstanding is £5600.00. The claimant claims 1/ £5600.00 plus 2/ intrest at the statutory rate of 8% pursuant to the county court act 1984

[Conniff]

Has the defendant 'refused' to pay back or 'just not' paid back the loan ?

[Consumer dude]

Has the defendant 'refused' to pay back or 'just not' paid back the loan ?

 

He borrowed money over a period of time, he confirmed with his signature the amount and appears not to want to return any of it. He is basically trying to weasel out of it..

 

I wouldn't use the phrase "help out". You'll have to prove an intention to create legal relations in order for a binding contract to be formed and 'helping out' doesn't sound like intending to create any legal obligation to repay.

 

Ok, I am open to any suggestions of choice of words. Thank you for your input..

 

How i am worked out the intrest then is as follows, 0.00022 x the amount which is £5600.00 which gives me the daily rate of 1.23 (does this sound right ?), have then multiply that by the number of days when money became due to the date of cliam which should be on the 10th of March. (339 days) How does one type the figure 0.792 into MCOL, as it states please enter only numeric with up 2 decimal places. Help..

[mjt2013]

I wouldn't use the phrase "help out". You'll have to prove an intention to create legal relations in order for a binding contract to be formed and 'helping out' doesn't sound like intending to create any legal obligation to repay.

[AndyOrch]

Your daily rate of interest is £1.23 (0.00022x £5600.00) then work out date of when the money was owed from (number of days x £1.23 =£........)

 

Dont add that to the claim amount its at the courts discretion if it is awarded.

 

Andy

[AndyOrch]

CD I am moving your thread to the General Legal Issues as its in the wrong forum.

 

Andy

[Consumer dude]

Does the following look better ? That the Defendant borrowed from the claimant monies which were made electronically online to the Defendants current account(s) and by paying cash via way of paying in book to the Defendants current account(s) and other payments made which included payments made to his gas and electric account. The Defendant agreed to repay any total amount on demand from the claimant. This was agreed by a verbal/oral agreement.Since the demand for payment was requested on the 28th/Feb/2013, the claimant has further attempted to come to a conclusion on the issue with the Defendant. On default of the agreed agreement, the claimant claims the amount of £5600.00 and annual intrest of 8% pursuat to section 69 of the county courts act 1984 from the the 4th of April 2013 up to the date of judgement..

[steampowered]

Looks fine to me Consumer dude. You'll need to give more detail later but fine for now I think.

[Consumer dude]

What happens in the days after a claim is made. Does the Defendant receive a copy soon after ? How much time will I receive to produce any other documentation. just trying to get a general idea at this stage..

[caro]

8% is the annual interest rate, not daily.

[citizenB]

What happens in the days after a claim is made. Does the Defendant receive a copy soon after ? How much time will I receive to produce any other documentation. just trying to get a general idea at this stage..

 

If you have submitted your Claim online, then the Defendant will receive a copy reasonably swiftly - they are dispatched using 1st class mail.

 

You should start to collate any evidence you already have and start to make notes for any Witness statement you might need to provide at a later date.

[Consumer dude]

8% is the annual interest rate, not daily.

 

I have amended that. Do you think the wording overall looks right..

 

Does the following look better ? That the Defendant borrowed from the claimant monies which were made electronically online to the Defendants current account(s) and by paying cash via way of paying in book to the Defendants current account(s) and other payments made which included payments made to his gas and electric account. The Defendant agreed to repay any total amount on demand from the claimant. This was agreed by a verbal/oral agreement.Since the demand for payment was requested on the 28th/Feb/2013, the claimant has further attempted to come to a conclusion on the issue with the Defendant. On default of the agreed agreement, the claimant claims the amount of £5600.00 and annual intrest of 8% pursuat to section 69 of the county courts act 1984 from the the 4th of April 2013 up to the date of judgement..

 

The above is how intended wording could look unless anyone else would like to add their ideas..

[citizenB]

The Claimant made loans to the Defendant by way of electronic transfers, cash deposit payments and payments to utility companies. The Defendant had agreed to repay any total amount on demand from the claimant. This was a verbal / oral agreement.

 

The demand for payment was made on 28th February 2013 and the claimant has attempted, unsuccessfully to come to a conclusion with the Defendant. On default of the agreed agreement, the claimant claims the amount of £5,500.00 and annual interest of 8% pursuant to section 69 of the county court act 1984 from 4th April 2013 up to date of judgment.

 

My suggestions above.. Do you need to say when the agreement was made ?

[Consumer dude]

My sugge when stions above.. Do you need to say when the agreement was made ?

 

This will come later when I collect documentation and any other evidence..