best friend and money issue?
ok, so like all of us im human and well a friend of mine about a month ago reached out to me to borrow some cash from me…i have known him for 5 yrs now, and hes been there for me many times…hes been workin at the same place (where his paychecks average 800-1200) every two weeks and plus he was set to recieve financial aid as well, so i didnt think it would be an issue and reluctantly i borrowed him the 600 and he said he was gonna try to multiply it and if he cant he will pay me back a g regardless of how that goes. my other friend was present thru thhis whole process. anyways guess what its been a month now and no promise to pay yet. so heres my question, how do i cleverly get my money back from this kid?hes like a brother to me and maybe financial aid isnt there yet, he showed me the loan release date but its not here yet and i dont wanna have to go to court over this, but i realize i might have to consider that. any ideas?
he said he wouldve made half the payment by now according to our initial agreement but things are not going according to plan(according to what he says) so im gettin impateint.
August 8th, 2008 at 3:27 am
Did he say he would pay you back within the month? It doesn’t sound like you guys agreed on a date that he would pay you back by. If not I would give him a little more time (another month maybe) before even bringing it up.
August 9th, 2008 at 12:36 pm
Ask him when you can expect payment and then get it in writing. If you have to go to court, atleast you will something concrete.
I am more concerned that your firend “was gonna try to mulitply it”. Sounds to me like he is a gambler??? If that is the case, you will probably never see the money. And, if you are relying on his financial aid to be used to pay you back, I am afraid you will be in for a rude awakening, because I am willing to bet that money is already spent elsewhere as well. Financial aid is suppose to be used to pay for schooling, not to pay off borrowed money regardless of why it was borrowed.
I do believe you will end up chalking this up to a lesson learned and NEVER loan money to anyone else, at least not with formal documentation and signed promise for repayment. This may or may not affect your friendship with this individual.
August 11th, 2008 at 8:25 am
Just send a letter, 1 regular 1 certified stating that there is still an outstanding balance owed on the loan. Give him 10 days to respond and states it is not paid within the days, other action actions may be taken. Make sure you keep a copy of the letter and if the certified comes back unsigned, do not open it because that’s the only proof that the letter was sent. Also, in the future never lend money to a friend or relative unless you attend to give it away.
August 14th, 2008 at 7:48 pm
you may be out luck if you try to enforce this legally for two reasons.
1. Statutes of fraud says that any contract involving the sale of goods or services in which the value is equal or in excess to $500, must be in writing in order to be enforcible. Just having a witness will not be enough.
2. The amount of money that you are expecting back (not including the original $600) is usury. At the very most you can ask for an additional $200 on top of the $600. Any more than that will be considered as usury.
Other remedies.
Just ask for the $600 back
set up a payment plan
If he still doesn’t pay it back, it is unfortunate, but you have no legal recource. I hope that this helps.