False accusations over "loan"

[SWJ]

Hello

I am doing this on behalf of my mum who has just received a court letter about an unpaid loan (small claims).

My "dad" has claimed that she owes him over £4k for a "loan" she received off him in 2008 for a car, now time for some facts

It was never a loan, there was no pre-loan agreement or any paper work, we never received any money off him as he bought the car himself for my mum.

they were in a relationship at the time and split in 2009, since a new women has come on the scene we have had constant letters from him and his solicitors saying we owe money too him plus interest.

Today she has received a county court claim form, would you put this in as much detail or just brief?

Any help to know were we stand with this would be a great help

Thank you

[PlanB]

Re: False accusations over "loan"

Hello SWJ and to Legal Beagles.

May I ask a couple of questions first. Whose name was on the vehicle registration document and where is the car now?

[SWJ]

Re: False accusations over "loan"

My mum has had the car since purchase, she used her old car as part-ex and he payed the rest of the amount. I am a named driver but my mums name is on the logbook i know this doesnt mean she is the actual owner but we cannot find the receipt. the car is at our house

[PlanB]

Re: False accusations over "loan"

It was never a loan, there was no pre-loan agreement or any paper work, we never received any money off him as he bought the car himself for my mum.

they were in a relationship at the time and split in 2009, since a new women has come on the scene we have had constant letters from him and his solicitors saying we owe money too him plus interest.

There doesn't necessarily have to be any formal agreement to prove the "loan" was made if there is/was a sufficient paper trail (including text messages) which implies your Mum was aware it was a "loan" not a "gift". From what you say this car was a "gift".

Read this to see if that helps you to establish the difference in order to be able to prepare your Defence:

http://www.thisismoney.co.uk/money/e...-000-loan.html

A lot will depend on what your Mum said in reply to those letter's from the solicitor.

[SWJ]

Re: False accusations over "loan"

She never agreed it as a loan from the start its only since his current partner has come along it has become a loan, there is no paper,texts, email anything that agrees to it being a loan. my mum has reffered to it as the alleged "loan" in the letter to the solicitors

[PlanB]

Re: False accusations over "loan"

she used her old car as part-ex and he payed the rest of the amount. I am a named driver but my mums name is on the logbook

Did he pay the car dealer direct or did he take out finance in his own name to pay the balance? You need that receipt because that will show your Mum's contribution and details of the purchase arrangement. If the dealer is still in business you may be able to get it from their records if it's been lost.

Tell your Mum not to worry about this today. It's the weekend and our Forum can be quiet but someone will help you on Monday. She will have 14 days to tick the box which says she intends to defend the claim (I'm presuming she does!). Then she'll have a total of 28 days to prepare her defence

Early on in the process the court will ask you if you want to solve the problem by Mediation instead of going to trial. In my experience Mediation can be the best option when a claim involves broken relationships because there's usually more to it than money. You have rightly identified that there's a new woman in your Dad's life and she could have motivated this court claim not him.

[SWJ]

Re: False accusations over "loan"

Thank you for the advice I have read the article above, when my mum met my dad he was in debt she payed this off for him(over 25years ago), she always had the money in the relationship till she was made redundant, she never took any money of my dad, if she needed it she always asked her dad (my grandad).

Is there any advice you could offer, what you already mentioned has been brilliant thank you

[PlanB]

Re: False accusations over "loan"

when my mum met my dad he was in debt she payed this off for him (over 25years ago), she always had the money in the relationship

If she's got any proof of the money she leant him over the years (not more than 6 years ago) then she could consider a counterclaim to get that back. If she counterclaimed for more than £4k then your Dad would owe her and not the other way round

Read this for background information:

http://www.findlaw.co.uk/law/dispute...nt/500244.html

[SWJ]

Re: False accusations over "loan"

It was over 20 years ago she lent him the money so that too long, what would she do with the court claim she has received would she need to counter claim for the same amount he is asking for?

Thank you again

[PlanB]

Re: False accusations over "loan"

It was over 20 years ago she lent him the money so that too long, what would she do with the court claim she has received would she need to counter claim for the same amount he is asking for?

Sadly she can't counterclaim unless she has her own stand-alone claim against your Dad. In this case she'll be looking to Defend

[SWJ]

Re: False accusations over "loan"

Thank you again for all your help I really appreciate it

[enquirer]

Re: False accusations over "loan"

As previously advised, in the absence of any paperwork to prove that it was a loan, simply deny it.

Whose name appeared on the purchase document? If it was D, then that suggests that D might be the true owner, although the fact that M provided part of the purchase price throws doubt on this.

That M traded in her car should be documented - refer to it in, and attach a copy to, your defence.

That M bailed out D 20 years ago has no immediate relevance, but it can be briefly referred to in order to discredit D.

[charitynjw]

Re: False accusations over "loan"

If the alleged 'loan' for the car was made more than six years ago, it falls foul of the Limitation Act, & so cannot be actioned.

If within the six years:-

Unless there was a 'promise under seal' (ie a written, signed agreement to pay it back), it would be examined with contract law in mind.

There has obviously been an offer, & an acceptance of that offer.

But where is the consideration for value?

Unless dad can show that, in return for the act of giving the money, he received something of value over & above the return of same (however small the consideration may have been), then there has been no contract in law.
The court will not judge on the morals of the issue (ie whether the money should be paid back from a moral or ethical pov)
Price v Easton (1833) 4 B & AD 433

[SWJ]

Re: False accusations over "loan"

Sorry for the long,long delay. By consideration of value do you mean that would my mum be able to pay back the money if he is claiming it a loan?