SA How to Get Debt Owed Without Supporting Evidence?

[Eliza P]

I am genuinely unsure what this question would be considered as within this forum/website. This thread seems like a good start.

A friend lent a substantial amount of money to someone to start up their business and the only evidence available is a bank statement showing where the money has gone to, however, no evidence of any terms and conditions of repayment or any contract is available at all.

There are a few email conversations back and forth asking for the payment of the debt (with a threat of legal action) and a few baited questions from my friend. The baiting questions have not been directly acknowledged by the other party. It was an attempt to secure written recognition of the loan.

My friend did threaten legal action, but what legal leg does she really have without any real supporting evidence?

What else could we do?

Any help is appreciated even if it is not what we want to hear.

Thank you.

 

[Victoria S]

Hi Eliza P,

The bank transfer and any emails, text messages or any other communications regarding the loan - even acknowledging the loan could be used as evidence, however if you are bringing an action for debt recovery, you must be able to prove on the balance of probabilities that what you're saying is true. You can also obtain independent witness statements and affidavits from people who knew about the loan and its terms who can vouch for it.

First course of action in these cases is to send a formal letter of demand. Its basically just a letter from your friend to the debtor stating that "there was a loan for x amount which was paid to you on x date. It was due for repayment on X terms which you have failed to adhere to and therefore the debt remains outstanding.

If the full amount of the debt ($x amount) is not paid within 7 days of the date of this letter, a legal recovery proceedings will be commenced in a court of law. If this is necessary I will also be claiming my legal costs and interest on top of the loan amount" or something to that effect.

If you have no success with the letter, I would see a lawyer about debt recovery proceedings and get their opinion on the evidence that you have.