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NSW Personal Loan to Ex Boyfriend - Small Debt Claim?

Discussion in 'Debt and Bankruptcy Law Forum' started by michellepurgar, 6 January 2015.

  1. michellepurgar

    michellepurgar Active Member

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    My mum entered into a verbal agreement with an ex boyfriend (boyfriend at the time) to pay for his airfare to travel with us which he agreed to pay back. Total amount was $2,000. No contract was drawn up and signed (wish I did now though) but I have text messages and emails acknowledging that it was a personal loan and that he is required to pay back the money but refuses to.
    Is there any way for me to get this money back? The airline doesn't provide a refund for a 'change of mind' and the ticket was non-refundable and non-transferable.
     
  2. Sophea

    Sophea Well-Known Member

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    Hi Michelle,

    Yes there is a way to recover the debt.

    First of all, if you have text messages that prove the agreement was for a loan that was to be repaid, then this will probably be sufficient evidence. Make sure you preserve them somehow and obtain a paper print out.

    Second, you want to make a formal demand for the money. Write a letter of demand setting out the exact amount of money that is to be paid back and attach to it the receipt for the airfare to evidence the amount and for added punch a copy of the text messages to demonstrate that you mean business and you can back up your assertions in court. The demand should specify a deadline for the money to be paid, failing which proceedings will be commenced. You can find some pretty good templates and precedents for Letters of Demand online - just google it. Deliver it in person or by registered mail so you can prove that he received it.

    Third, if you get no love from the first demand, send a second - saying basically the same thing but also specifying a date that you will institute proceedings if payment is not received. Also highlight that there will also be interests and legal costs to pay if he waits until legal proceedings are in action to pay the money.

    Four - go to your state Small Claims Tribunal or equivalent and file a statement of claim - this will require you to attend a hearing and will cost a small filing fee.

    Once you have a judgement against him, you can then enforce it through various means, but that's for another post.
     
    Ian Macleod likes this.
  3. michellepurgar

    michellepurgar Active Member

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    Hi Sophea,

    Thanks very much for your reply!
    The text messages don't necessarily mention a loan in clear terms or outline amounts owing, I just have a few showing he acknowledges that he needs to pay my mum back for the money spend on the airfare and also have some where he states he knows he owes my mum money, but will not pay the amount. Will this suffice?
     
  4. Sophea

    Sophea Well-Known Member

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    It probably will suffice - as it will be supported by evidence given by both you and your mother and any other witnesses (usually written in an affidavit or statement) as to the circumstances of the case. It will at least demonstrate that you are not fabricating the matter out of thin air. Also any evidence or text messages that confirm he was to travel with you or anything that can support the factual circumstances that you are alleging.
     
    michellepurgar likes this.
  5. michellepurgar

    michellepurgar Active Member

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    What do you think is a reasonable time frame to allow him to get me the amount owing before taking it further.
    He owes me $2000 for the airfare and $850 for a personal loan which I have a signed agreement for..
     
  6. Sophea

    Sophea Well-Known Member

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    Usually I would allow 2 -3 weeks for a letter of demand.
     
  7. michellepurgar

    michellepurgar Active Member

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    Also, if we've cancelled the ticket am I still entitled to get the money back off him as he doesn't have a ticket now?
     

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