Loan a friend $1200 and still waiting for repayment

[chrisse33]

I loan a friend $1200.00 in Mar. 09, so that he can have his car repaired. I gave him $1000 on Mar 5th, 09 and $200 a few days later. He told me that he would pay me back in a few mths. I figured I would gave him at least 3 mths to pay me back. On June 18th, I sent him a text stating that I was in a bind and was wondering if he had the money. He informed me that he wouldn't have the money until the beginning of next month (July 09) and that his plan was to pay me back in July, but the paint job on his car set him back. (Someone threw paint on his car sometime in June 09). Sometime in July he gave me $20. I sent another email in Aug stating that I needed the rest of money to pay my child's school tuition. I didn't received the money. Then in Sept 09, I sent another email requesting for the money. He then left $100 in an envelope for me. Then sent him several emails stating that I needed the balance. I then sent an email stating that since he was having trouble paying the $1200, he could just pay $1000. After several other emails and harsh discussions he finally left $300 in an envelope. Now, the balance is $580. It would have be $780 if I did not deduct the $200. On Jan. 29th, he sent me a text stating that he will pay me the money in 2 weeks.....I am still waiting. I need your advice on what I should do next. Thanks!

 

[mightymoose]

This is tricky... you are having a hard time getting it from him, but he is slowly paying you back. You are almost there... so you might want to just stick with it a bit longer. You can still have him pay the full amount if you want. He doesn't deserve any discounts for being so slow and irresponsible.

Your alternative is to file a small claims suit against him and get a judgment. However, a judgment wouldn't necessarily make him pay any faster, and might actually make him less cooperative.

Personally, as frustrating as it is, I would stay on top of him to get the money little by little until the full $1200 was returned. He is very lucky that you are not charging him interest, so he shouldn't complain about repaying the full amount.

If you take him to court over it then he might just stop paying you altogether, and it would get more difficult.

Continue to save any correspondence you have with him. Keep records of how much money was paid and on what dates. You don't want him to suddenly decide that he had paid you in full and say you have miscounted. Give him a had written receipt at the very least.

You might even want to write something up that gives the total amount loaned and accounts for all payments received and shows the outstanding balance as of that date. Have him sign it if he agrees to the amounts. That way you have something current to work from if there are more problems.

 

[chrisse33]

Thank you for responding! I also wanted to know if I take him take him to small claims court, will I be entitled to receive the whole $1200 or only $1000 since I already told him that it was ok to pay me back the $1000.

 

[mightymoose]

You would still be able to collect the whole $1200.
Hopefully you can get it back without going to court... a lot of people will stop cooperating entirely when you decide to sue. As I said, you might be best off to just keep hounding him and get it a few hundred at a time... you are almost there.

 

[FlaRiptide]

Mightymoose,

You would still be able to collect the whole $1200.

I would disagree. This is a verbal contract and they probably used cash not checks.

By Chrisse33's own word's he forgave $200 of the original $1,200 loan. This is now documented within the post of this website.

I then sent an email stating that since he was having trouble paying the $1200, he could just pay $1000.

There were no contingencies placed upon this loan reduction. If Chrisse33 had said I will reduce your loan to $1,000 IF you pay me in full within a week, then the reduction has a limited time offer. If the guy didn't pay within the week, then the full $1,200 would be due. But this is not what occurred. Out of the kindness of his heart, Chrisse33 reduced the loan to $1,000 and gifted the $200 to his friend.

 

[jharris352]

How about BE PATIENT. He's paying you and not ducking you. If he doesn't have it he doesn't have it. Suing him will just get you a judgment and then what? You can't make him pay if he can't. He is making progress. You should always attach a condition to a discount by the way. Say, if you pay me by the end of this month I'll take 1000.

You two are good friends. I know you need the money and so does he. Be patient.

 

[jharris352]

If you go to court you are entitled to the entire $1200. The $1000 was a voluntary discount if he voluntarily paid. It isn't a gift. If you have to go to court you can collect it all. Again, court is not what you want to do here. It won't get you paid any faster. Be Patient. Good luck.

 

[jharris352]

Flariptide, it's not a verbal contract unless there is mutual consideration. The debtor in this case did nothing to deserve the reduction. It was a temporary gesture but not a binding offer. He can recover the entire 1200 if he sues.

 

[mightymoose]

Mightymoose,

I would disagree. This is a verbal contract and they probably used cash not checks.

By Chrisse33's own word's he forgave $200 of the original $1,200 loan. This is now documented within the post of this website.

I understand what you are saying, but the OP would most likely still be able to collect the full amount, rescinding the previous offer due to the untimely payments and difficulty collecting.

Still, best to avoid court altogether with such a small amount left. Let the guy make a few more untimely payments and it will be done.