WA Personal Loan to a Friend - Rights to Obtain Repayment of Debt?

[Ren Hoek]

I gave my friend a personal loan of over $10,000 13 months ago and recently the agreement we had for the repayment of the debt has been disregarded. Just enquiring what legal rights I have to obtain this money as there was not any contract written.

 

[Rod]

Assuming you can clearly show some regular repayments you appear to have a strong case. Recommend you send a registered letter detailing the agreement to the friend, with repayments listed, and remind them to honour their loan agreement. If they fail to restart the repayments and you are willing to risk the friendship then you go to court seeking court orders enforcing your agreement.

 

[Sophea]

If you can provide any evidence at all of the agreement that you had, for example emails, text messages or even friends or family who knew about the loan who would be willing to testify or as mentioned above, regular payments being made from your friend in repayment of the loan, which evidence the existence of a loan on the balance of probabilities it will be up to the borrower to justify why such payments were being made if no loan existed.

I would start by sending a letter of demand, requesting resumption of payments by specific date failing which you will commence legal proceedings.

 

[JS79]

As above, send a letter demanding payment as per the agreement or you will take it to the small claims magistrates court where you will be asking for the whole amount that is owed.