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When loaning money to family goes bad...

Valued Contributor

Re: When loaning money to family goes bad...

I've tried to contact her at least 4-5 times since my last update. She won't take my call so I send messages to her e-mail, Facebook and phone. I spelled out that she needs to take care of this. I was as nice as I could be considering the situaton but to the point. Her BK has been discharged so that is done. I told her that I will take this to court then go for a garnishment if she doesn't live up to her end of the deal. She doesn't like courts. Is very intimidated by them so that would be an interesting venture. I have enough to show what our arrangement was and have put together a list of what I need to do from the beginning to the end.  I've tried to talk myself out of the court option but I'm kind of stubborn. Plus when I say I'm going to do something, I like to follow though. I figure my expenses would total about $450.00 so I'd still be up $800.00.

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 21 of 50
Regular Contributor

Re: When loaning money to family goes bad...


masscredit wrote:

I've tried to contact her at least 4-5 times since my last update. She won't take my call so I send messages to her e-mail, Facebook and phone. I spelled out that she needs to take care of this. I was as nice as I could be considering the situaton but to the point. Her BK has been discharged so that is done. I told her that I will take this to court then go for a garnishment if she doesn't live up to her end of the deal. She doesn't like courts. Is very intimidated by them so that would be an interesting venture. I have enough to show what our arrangement was and have put together a list of what I need to do from the beginning to the end.  I've tried to talk myself out of the court option but I'm kind of stubborn. Plus when I say I'm going to do something, I like to follow though. I figure my expenses would total about $450.00 so I'd still be up $800.00.


I think you could probably also ask to be reimbursed for the costs to pursue the case, especially since you've made a good-faith effort to recover the money first and aren't just suing her out of the blue with no warning.  Definitely filing fees and probably also travel/lodging costs.  Worth a try, anyway.  All they can say is no.

Chase Sapphire Reserve $30,000 | Amex BCP $30,000 | Discover It $30,000 | Citi Simp $16,500 | NFCU Cash Rewards $14,400 | Citi DC $9,800 | Chase Freedom $9,000 | VS $4,100 | Kohl's $3,000 | Loft $3,000

EQ 823 ~ TU 817 ~ EXP 808 | ITG since 8/24/2016
Message 22 of 50
Established Contributor

Re: When loaning money to family goes bad...

I've always had the rule that I would not lend money that I could not afford to lose. But boy do I understand the OP's frustration. A couple of years ago I loaned $1200 to someone in my hometown that I've known for 30 years. We had not been close in many years but I listened to the sob story and made the loan. He made the request via text and I responded using the same method, including the repayment agreement.

 

It quickly became clear that he had no intention of repaying as there were multiple lies, promises and then the complete avoidance of my contact attempts. I would have accepted a few dollars just as a show of good faith. I would have worked with him for months and months as long as he was making the attempt. It's the lies and the complete lack of concern that bothered me. Did I mention he owns a funeral home? When I'd visit my hometown I'd see his commercials on TV. The reminder was irritating. So, for the cheap cost of filing and fees to serve him, I took him to small claims. They were great at the court and let me pick a court date that coincided with my travel plans for a home visit.

 

He showed up for the court date. He told the judge that he owes the debt and had another case pending in which he was receiving money. It would be paid in 2 weeks. Since then? Nothing but more lies. I haven't bothered yet with anything else. The debt continues to accumulate interest. At one point, he boasted about his credit score. I hope every time he looks at his report he sees my name under 'judgement'.

 

I made the mistake of making the loan. But I don't regret pursuing small claims. I still have time to collect. Perhaps one day I will.

 

More than enough credit. --- As of 7/19/16, gardening for a very long time ---
Message 23 of 50
Valued Contributor

Re: When loaning money to family goes bad...

I've looked into being reimbursed for expenses but I don't believe I can claim that.  This is some info about the small claims process -

 

Some counties require mediation prior to a hearing before the judge. This allows the parties to try to settle the case without a hearing. Even if the parties agree to settle out of court, the plaintiff may ask the defendant to pay the court costs. If they cannot agree to settle, the judge will instruct both parties about courtroom procedure and hear the arguments presented by both sides.

 

The plaintiff and defendant may question or dispute each other's testimony during the hearing. When both parties have completed their presentations, the judge will give a judgment (make a decision). The judge may grant an award of monetary damages to the plaintiff, to the defendant or both.

 

The plaintiff must appear in court on the day of the hearing, or the judge may:

Allow the defendant to present testimony and give a judgment, without hearing from the plaintiff.
Postpone the case until a later date.
Dismiss the case.
The defendant must appear in court on the day of the hearing, or the judge may grant a default judgment in favor of the plaintiff.

 

and 

 

In many cases collecting the court award is more difficult than proving the case in court. A judgment granting the plaintiff an award gives the plaintiff the right to collect the money damages from the defendant, but the plaintiff is responsible for actually collecting the award. The court cannot, and will not, collect awards for any party.

 

If the defendant is unable to make full payment immediately, the plaintiff may ask the court at the hearing to order a payment plan. The plaintiff must pay the clerical and accounting costs of such payment plan, which costs are not to exceed 10 percent of each payment made. If the defendant is unwilling to pay, the plaintiff may:

Place a lien on the defendant's property, giving the plaintiff the right to sell the defendant's property to collect the money award. The clerk of the court, when asked by the plaintiff, can place a lien on the defendant's property. A small fee is charged to place a lien.


Garnish the employer or bank account of the defendant in order to seize the defendant's wages or bank deposits. The garnishment process allows the plaintiff to collect installment payments on the debt the defendant owes. The plaintiff must file a separate garnishment action and pay a filing fee.

>>

I'd just go straight for the garnishment so I don't have to deal with the rest.  I've been giving this some more thought today. Asking myself if it's really worth pursuing. I rather not having to travel over 1100 miles each way to do this but...if I don't, she will pretty much be getting away with taking the money. I can't have that. And at this point, I don't look at her as a relative. I consider her someone that stole money from me. And all of that time would probably be for about 10 minutes.  There is no writted agreement but she acknowledged that she was going to pay me back in a message so I have that along with other written discussions before I sent the check to her attorney. They show that money was going to be paid back. 

 

Many have said the same things. When you "loan" money, consider it a gift and don't expect to get it back. And, don't loan it if you can't afford to lose it. Both are very good points. Words to live by now.  I could write that $1250.00 off but it's the point of it. 

 

 

 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 24 of 50
New Contributor

Re: When loaning money to family goes bad...

I'd check with the court in your own jurisdiction because you may be able to file it where you are, not where she is. The loan contract originated in your jurisdiction when you mailed the check from there. Since you're essentially suing for breach of contract, the proper venue for a small claims court filing would be the location the contract took place. One could argue that proper venue is YOUR location, not hers; i.e. the contract commenced when you mailed the check from your venue. It doesn't matter where she is now.

 

Every small claims court has advisors. I'd visit your local one and ask them about the proper venue. If you have jurisdiction and you file and she doesn't show up - guess what? Automatic judgment in your favor. Without having to leave town.

Experian 786, Equifax 799, TU 786 (4/15)
Experian 786, Equifax 791, TU 786 (5/15) EQ dinged 8 pts for HP from Discover App

Trying to hit 800! Just because.
Message 25 of 50
Valued Contributor

Re: When loaning money to family goes bad...

That's a good idea. It would make things a lot easier if I need to go that route. I might not have to think about that anymore though. I sent another payment request yesterday. Received a reply that said she would pay me today. That payment was sent first thing this morning. Things will be good as long as she maintains payments every month until I am paid off. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 26 of 50
New Contributor

Re: When loaning money to family goes bad...

Well that's a good start. Keep documentation of the payment - it's considered proof that she acknowledges the debt. That'll be useful if the matter does wind up in court at some point.

Experian 786, Equifax 799, TU 786 (4/15)
Experian 786, Equifax 791, TU 786 (5/15) EQ dinged 8 pts for HP from Discover App

Trying to hit 800! Just because.
Message 27 of 50
Established Contributor

Re: When loaning money to family goes bad...


masscredit wrote:

That's a good idea. It would make things a lot easier if I need to go that route. I might not have to think about that anymore though. I sent another payment request yesterday. Received a reply that said she would pay me today. That payment was sent first thing this morning. Things will be good as long as she maintains payments every month until I am paid off. 


That's good news. You have the potential for better results than I had. Good luck!

More than enough credit. --- As of 7/19/16, gardening for a very long time ---
Message 28 of 50
Valued Contributor

Re: When loaning money to family goes bad...

good to read she has started to payback1

Message 29 of 50
Valued Contributor

Re: When loaning money to family goes bad...

I receiced July's payment this morning so I think everything should be good now. She hasn't said what the issue was but I'm glad things are working out. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 30 of 50