Not Disputing The Claim, Just Won't Pay Up!

[ganesh]

To cut a long story short I am owed money from someone. He is not disputing it, I have legal proof of the loan and intention to repay,and he has actually paid back a small amount.
He has now stopped payments and says he cant afford to pay any more back and is no longer communicating. I have threatened court action but looking at it, it seems that the court is just for disputed claims and not debt recovery. Should I still go through this legal procedure or use a debt collection agency? I cannot let this go for financial and moral reasons. Any ideas?

[ganesh]

Ok, another form but useful to know. Does the court find out about true earnings. What if he lies about his income as factor suggested?

[craft1948]

I think the court requests the details from his employers, not from him. There is a certain level of 'protected earnings' involved but I don't know what they are (it's 30 years since I was a debt collector)

[ganesh]

So, having been a debt collector in the past, would you still recommend I go through the small claims court or employ a debt collection agency?

[Peter Pedant]

It is a little more complicated and I think you should go for CAB advice
and if it is now called Relate go there then.

now if it is as you say - a loan with part repayment then there may be a few more hurdles. - does the loan involve interest for example ?

I am not sure if the very well intentioned correspondents have done any of this. I looked at this for someone who was dead and the exec just said I am not paying....and the solicitor peeped out from behind him and piped: he's not paying ! ( like with no dentures in)
and then added it wasnt a loan in the prescribed form......

and it seemed that there is a legal requirement to be registered before you give the loan with the council - but dont worry - there is a one off fee for one claim under such and such
and the loan agreement has to be in a prescribed form.

My council made it clear on their web site that it was a crime to give loans without registration ( = loan sharking) but seemed only to take action when the rate of interest was wonga proportions

Hence the need for advice.

Debt collection agency - debts are things called choses in action and cane be traded. You can buy and sell debts like used bicycles and so on. I think they buy the debt at a discount but I am not sure.


So if you are gonna go on with this - I think as number one poster said - - - it is off to CAB - or is that relate ? first....

[Peter Pedant]

sorry craft you were a debt collector

whole load of regs under consumer credit act
which I looked at and thought oo-er

They paid in the end and I didnt go to court

[ganesh]

Not sure I understand all that, but I have checked on the CAB site and although not a legal loan in the normal sense, you can claim if it was a personal loan and have proof in writing of the loan and intent to repay, which I have. Not bothered about interest but apparently I could claim some. I just want the money back and wanted to know the best way. As I said, there are a lot of different forms and then apparently the court can say £1 a week which doesn't seem fair. Just wondered why they cant say pay up or will send in bailiffs/but I obviously want to do this legally.

[Peter Pedant]

you ve got a good grasp of what's involved

you now have to decide whether you;re going to do it

[ganesh]

Well its a no brainer really, if I don't do it I don't get the money, so is there any reason why I shouldn't try? I suppose I have a slightly irrational fear of getting involved in the Law for some reason.