family and friends borrowing - asking for it back 12 years on...

[gilly5001]

hi

wonder if any one can shed some light on a situation. 12 years ago a friend lent another friend some money to set up a business. the friend lending hoped to be involved in the business at a later date. the friend who lent the money later decided she wanted nothing to do in said business as had found other work/ commitments. There was a receipt detailing money being loaned for business. no terms no repayments etc. as yet no payments back have been made as verbal agreement was, by the lender working with the business would recoup money loaned, this did not happen and the business was not successful

the lender now wants the money back, the lendee thinks that she was let down by the lender. where do they stand? Is it statute barred? Does the limitation act cover this type of loan?

TIA

[i hate bailiffs]

The money is long gone

Chance of getting money after this time is low to nothing

 

Court would not work after this amount if time passing

Try luck at lottery chances of winning are far higher!

[BankFodder]

I'm not sure that I agree with the advice given above.

 

A limitation period normally begins from the date of a breach of contract or breach of a duty to repay.

 

If this is a loan which has been made without any repayment terms and it may well be continuously recoverable.

 

Is it a significant sum of money? Is there clear evidence that the money was given as a loan rather than as a gift?

[Peterbard]

Hi

In the case of a loan the statute barred condition commences 6 years after the lender demands repayment of the loan as per section 6 of the statute of limitations. The previous common law position used to be that the 6 year period commenced as soon as the loan was made, this was modified in the statute of limitations.

[gilly5001]

Yes evidence it wasn't a gift, has asked for money since about a year after loaned. Arrangement that it was beneficial to both parties but lendee feels kept her side and job was offered but declined by lender. Maybe worth pursuing - only evidence is the original receipt of loan 12 years since

[gilly5001]

Couple of grand

[fkofilee]

Okay so less than £10000?

 

Is their any legal contract that has been written up for lending of said money?

[BankFodder]

Well if they asked for repayment 11 years ago and the repayment request was denied without any agreement about it, then the limitation period would run from that time.

 

This would mean that it was well out of time – however as to the value, don't forget that if you could claim, you would be adding 8% per year which might take it over 10,000

[BankFodder]

I've just had a look at the Limitation Act – section 6.

 

It seems that a demand for repayment must be made in writing. If the demand 11 years ago was simply made verbally that probably doesn't count.

[Peterbard]

I've just had a look at the Limitation Act – section 6.

 

It seems that a demand for repayment must be made in writing. If the demand 11 years ago was simply made verbally that probably doesn't count.

 

Yes by writing only, it is the same section which applies to tacit overdrafts on current accounts.

[ericsbrother]

ask yourself thi, does the debtor have the means to pay the money back if court action was successful? If the answer is no then why bother. On the other hand if they are swimming in cash then try asking again in a formal way

If the whole thing was considered as venture capital then hard luck to the lender, it didnt pan out.

[Peterbard]

This a good point, I have known several cases where friends or family members have contributed towards some venture or other, then when it failed demanded their money back.

 

If it would have been successful they would have been taking their share of the profits though. Many have taken out loans in order to repay because they feel guilty on the account of it being family. Presumably the OP lost money on this venture also.