Author Topic: Secured Loan turned friendship sour...  (Read 797 times)

NotBad

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Secured Loan turned friendship sour...
« on: Apr 07, 2010, 09:33:16 PM »
Hi all!

Have been trying to find an answer to my question on here, however I also thought I'd ask!

The story goes like this.  18 Months ago, my partner and I (although the debt is in my partners name) took out a £2000 loan, secured on a friends property.  Of coarse with the friends permission.  Everything was going swimmingly, never missed a payment.  My partner was very suddenly and out of the blue made redundant last year.  We continued to make payments until 2 months ago.  We were jigging our finances trying our damnest to make sure this was one debt that got paid and try as might, we couldn't make the payment on the due day.  4 days later said friend was stood on our doorstep. The finance company had taken the missed payment from his account 2 days after we missed the payment.  After speaking with said friend, he informed us that he rang the finance company in panic and paid the whole debt off, using his credit card.  It was never our intention to not pay it. The situation is now bordering on harrassment, with said friend demanding we repay the debt (£1400) and sending threatening text messages.

We have offered to repay the portion of 'our' debt on his credit card and have asked him to provide us with his APR so we can calculate what our £1400 is worth to him a month and what his out of pocket expense is. We have told him that this is the best we can do at the moment, until my partner is back in work when we can look at paying back more.  Said friend is very reluctant to tell us his APR and doesn't seem at all satisfied with this arrangement.  If I'm completely honest, it seems that said friend is angling for £1400 cash in his pocket.

Needless to say I am very sorry about this whole mess and feel very bad, said friend was a very close one.  However I cant help feeling a little peeved that without so much as a phone call to ask us what the problem was, he steamed in 2 days after the payment was missed and paid the whole debt using his credit card.  We never asked him to do it.

Anybody have any thoughts, particularly on our legal position as said friend has threatened us with court action, amongst other things!!

Many thanks  :)


adria82

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  • Posts: 6
Re: Secured Loan turned friendship sour...
« Reply #1 on: Apr 24, 2010, 06:38:07 AM »
Hey there,

I understand how you must be feeling as your friend is creating all mess. AS you are honest and clean, you can sit back with your friend and make him understand. If this doesnt work then the best way is to call a lawyer and ask him to settle out of the court. It is very important for you to take advice from a financial advisor and a lawyer to avoid any unforeseen situation.

I would only advice you to talk to your friend calmly and take a help of any middle man.

Hope my advice helped you.