Consumer Law, Warranties Verbal agreement

[Legalaid]

I am at university in England. I paid accomodation fees (for which i can obtain a receipt) by cheque on behalf of someone who did not have a cheque book, as the accomodation office would not accept cash. I paid £1200, agreeing that the person would pay me back by cash immediately. Soon after they paid me £800 cash, which i deposited into my bank account, but asked if i could extend the loan for a few weeks as they were very short of money. I agreed, and it was decided that as soon as we returned from easter vacation(2003), i would be paid back the remaining amount. The person in question did not pay me back, and every time i asked, they made an excuse about not having time to go to the bank or something like that. Shortly afterwards, they left university and i have not seen them since. They have telephoned me on numerous occasions to tell me that they would be coming to see me in order to pay me back the money, but every time they pull out at the last minute. On one occasion they tried to deny all knowledge of a loan taking place, saying that i paid them the money as a gift, and when i threatened to sue for the money, they said that they would say it was a gift and i could not prove otherwise. Since then they have contacted me to say that they will be paying me back soon.
This person has a criminal record (2 convictions) and i fear that i am never going to see that money again. Can anyone advise me? thanks

 

[NYClex]

hm, I must say, I fear so, too. I once, long time ago, was too nice and gave someone a loan like that. And the same thing happened, I actually sued them and got a title, but since they are too broke I have never been able to collect.

In your case you surely have a verbal contract, but since you have nothing in writing, it is harder to prove that.

If they have something like a small claims court in England, you might try your luck. But if suing them would cost a lot of money, I gurss you should not throw good money after bad one, as they say, and write off your loss.

 

[Michael Wechsler]

First, it is never a good idea to lend money from those who are so financially strapped -- their position might say a great deal with regard to your possiblity of seeing the money again.

That said, in every court I have practiced my understanding is that the burden is on the recipient of the money to prove that the money was a gift and not a loan. As would make common sense, such monies given are presumed to be a loan unless the circumstances dictate why someone would simply wish to part with their money, e.g. relationship, etc.

It seems that your only recourse is to take them to court but, as they say, it is difficult to get blood from a stone.

Originally posted by Legal_aid
I am at university in England. I paid accomodation fees (for which i can obtain a receipt) by cheque on behalf of someone who did not have a cheque book, as the accomodation office would not accept cash. I paid £1200, agreeing that the person would pay me back by cash immediately. Soon after they paid me £800 cash, which i deposited into my bank account, but asked if i could extend the loan for a few weeks as they were very short of money. I agreed, and it was decided that as soon as we returned from easter vacation(2003), i would be paid back the remaining amount. The person in question did not pay me back, and every time i asked, they made an excuse about not having time to go to the bank or something like that. Shortly afterwards, they left university and i have not seen them since. They have telephoned me on numerous occasions to tell me that they would be coming to see me in order to pay me back the money, but every time they pull out at the last minute. On one occasion they tried to deny all knowledge of a loan taking place, saying that i paid them the money as a gift, and when i threatened to sue for the money, they said that they would say it was a gift and i could not prove otherwise. Since then they have contacted me to say that they will be paying me back soon.
This person has a criminal record (2 convictions) and i fear that i am never going to see that money again. Can anyone advise me? thanks