Need advice on loaning money

So I did a really dumb thing about 1.5 years ago and loaned $1000 to a young couple that I know from the fire dept. The gal and I were pretty good friends and worked together quite a bit. They were tight and I had it and we had arranged how I would get it back when his big fire dept. check came in. Well, that date came and went. To this date I have only gotten $300 of it back, and this only after much reminding, begging and pleading. I recently wrote a harsher note and actually got no reply back. I've seen these kids get married (and I'm sure they got a boatload of money); spend money on an expensive dog; they go out to eat all the time etc. I've tried to work out a payment plan and everything. Now they are just ignorimg me. My question is do I keep bugging them or do I have to eat the money because I was so stupid to loan it to them in the first place? What can I do to make it seem more serious to them? I'm at a total loss. I don't make much money and I could really use it. I'm a single Mom and my oldest is getting ready to go to college etc..... It just really stinks to think that friends would do this to me..... HELP! :(

The lawyer in me will tell you (without giving you legal advice, I have always to make that disclaimer) to hire an attorney to write them a firm letter, and take it from there. Some attorneys do not charge for an initial consultation, and the cost for writing the letter should be minimum.

Or you can take them to small claims court, represent yourself. You can get the forms on line or even some courts have the forms ready. Pay the filing fees and the process service fee and sue them. You need to request to the judge that the couple, sue them both, that not only they pay your debt but your cost of the suit as well.

But first read a little bit about small claim courts, and into the law as to what you need to prove since it was a loan and not a gift.

Well if they have money to get married and buy an expensive dog, they should have the money to pay you back. However, that has nothing to do with the lawsuit if you decide to go that route.

I know some people here will tell you to write it of as a lesson in life, I won't. A loan, specially of that magnitude, needs repayment!

Good luck dear!

I agree. I would write them a letter and tell them if I didn't hear from them in a specified period, I was going to file in small claims court, and then I would do just that. This is why I rarely, ever, loan money. If I want to give it to them, I do . . . then I'm not expecting repayment. I have loaned money in the past, and I don't ever expect to see a penny of it back . . . so I just don't do it anymore. :( It is really sad that some people seem to feel that they are owed anything they can get and tough luck to everyone else. :mad:

I would think unless you have a written paper saying you are lending this couple X amount of money to be repaid within a certain time frame, and you all signed it, that it would be hard to prove much of anything in court.

Can you even prove they borrowed money from you??? Its your word agains theirs without any proof isnt it?? If you have no proof, to me going to court is a waste of time and even more money you will lose.

I agree they should be held accountable, but you may have to just count it as bad judgement and a huge mistake on your part, and a lesson learned about lending money.

I learned the hard way myself, and would NEVER loan anyone money again . Even with a written and signed agreement as to when it gets paid back you can still run into trouble and end up spending a lot of time and more money trying to make someone live up to the agreement .

You guys gave me some great advice. I think I'll send one final certified letter telling them that I will pursue this legally. I can't really prove it was a loan except that I had many witnesses. Nothing in writing unfortunately. I can also prove that I wrote the check.....anyway, I figure I may never see it again. It's really sad we can't trust our friends. Thanks for all your help.

You do not need to have a written agreement to prove it was a loan. Your check and the witnesses, as long it was not hearsay, (do not have the time now to define what that is) can prove the transaction. Bring the witnesses, to court, that saw the transaction, or have personal knowledge not just because you told them, but because the couple told them and saw more to it...

It can be done, but if you are going to represent yourself, please read on how to go about it so you can be well prepared.

Good luck!

I'd keep bugging them to get it back. I found myself in a similar situation a couple of years ago & it took two years to get it back. I got lucky though when his girlfriend (he was single at the time of the loan) found a text message from me stating that I wanted the money back and she forced him to pay me back pronto.

I now think that you should never loan money out unless you can afford to not ever have it repaid, as it seems that there's a good chance you will never get it back.

Bring these to the court as well.

Your bank statement that shows the money was actually taken out of your account. If you have already thrown it out, request from the bank a copy of that bank statement.

The actual check you wrote, which shows it was endorsed by said friend. If you do not get your original checks back in your bank statement, request from the bank a copy that shows the front and back of the check.

These things will cost a little, however you will regain much more in winning a $700 judgment.

Fae