Family member demanding money over a gift

[CharlieScott]

Hi,

Ive received a letter from a family member who ive not been in contact with since 2009 who gifted me a motorcycle almost 9 years ago and is demanding £5000 for a loan he took out prior to this and that if i don't promptly pay the letter states he was seek legal action.

• Almost 9 years ago i tried to get a loan for £2000 to buy a motorbike as i desperately needed transport, my uncle who at the time i had a good relationship with offered to come with me as i was young at the time.
• With me not having built up a credit rating i was unable to get a loan however as my uncle was with me he took it upon himself to ask for the £2000 loan to be taken out in his name as he was a customer at the same bank.
• He was then told that he could not simply take out a loan for the £2000 as he already had a loan with them and that if he wished to he could take out a loan to the value of the requested £2000 plus the balance of the remaining amount on the loan he already had to pay that off so he was left with one loan
• Without discussing this with me he agreed to do so and thus took out a £5000 loan, £3000 of said loan immediately paid off the old loan leaving him with £2000.
• Still not having discussed any kind of repayment plan he came with me to a bike shop to view a bike i had seen and he proceeded to buy the motorbike on his bank card, he told me at the time of this that the motorbike was a gift from him to me in lieu of work i did for him over the course of 6 months at a house he bought to renovate and sell on for profit, i accepted this gift.
• He never once asked to be repaid and always spoke of the motorbike as a gift.

Now nearly 9 years on he has sent a letter stating that "we" took out the £5000 loan and that i apparently signed a document at the bank, i don't remember this and don't see how this can be true as after all the loan was between my uncle and the bank, why would i of needed to sign anything? especially considering that £3000 of this loan went straight to the bank to pay off his previous outstanding loan? so how can i be responsible for the full loan of £5000?

The letter states that he is in a financial mess and that due to remortgaging his home years ago which has nothing to do with this loan that he is now forced to sell his home 3 years before the mortgage would be paid off, to me it sounds like hes gotten himself into a mess and is trying to scare me into giving him money with this story?

His letter also states that if i do not promptly pay this sum that he will take legal action, i don't see how he can do this when hes sent a letter asking that i repay a £5000 loan that i could never of had as he only had £2000 of the loan hit his bank? his paperwork for the loan will surely prove this?

I have sent a short letter back to him making my stance clear that the bike was a gift and that i didn't receive any other money.

any help would be hugely appreciated. Thanks

[ostell]

Re: Family member demanding money over a gift

Deny that you had a loan and in any event it would now be statute barred. Others will tell you the relevant numbers to quote. It should be sufficient to warn him off.

[Mineral1]

Re: Family member demanding money over a gift

Section 5 Statute of Limitation Act 1980... Six Years..... After that any claim is RIP...
:tongue2:

[nemesis45]

Re: Family member demanding money over a gift

HI, welcome,
If there is no written agreement for the alleged /lone will have an d it would be your word against his.
If after nine years you have made no payment and have not acknowledged the alleged debt in writing it is statute barred and your uncle cannot pursue you through the courts.

nem

[CharlieScott]

Re: Family member demanding money over a gift

thanks, this is the copy of the letter i am going to send, could anyone advise if this ok?


I am in receipt of your undated letter indicating your intention to bring legal action against me for £5000.




My position is as follows;




1) I am aware you took out a loan of £5000 from HSBC but in order to do so you had to pay off your then current loan of around £3000 with the new £5000 Loan which left you with £2000, this was not discussed with me as it was a decision you made there and then upon myself not being able to secure a £2000 loan with my bank account which was the reason we went to the bank.
2) No money was ever given to me.
3) Soon after you purchased a motorbike with your bank/credit card at a Motorbike garage in XXXXX for the price of £1500.
4) You indicated to me at that time of purchase, and on subsequent occasions, that the Motorbike was intended as a gift from you to me which I accepted in lieu of the work I carried out at a house in xxxxxx on your behalf and that you did not wish to be repaid.




If you have any documentation signed by myself please be aware that I am entitled to see this and urge you to forward a copy of this onto me.




Please be aware I intend to defend any claim you may bring.

[ostell]

Re: Family member demanding money over a gift

No, don't go into details about the money from the bank, just deny receiving a loan. You must state that even if he thought it was a loan it would now be statute barred as the events were more than 6 years ago.
By all means confirm that the motorbike was a gift from him.

[CharlieScott]

Re: Family member demanding money over a gift

thankyou, how about this,
My position is as follows;







1) No money was ever given to me, nor was anything signed or agreed by me.

2) You purchased a motorbike with your bank/credit card at FastKats Motorbike shop in xxxxxxx for the price of £1500.

3) You indicated to me at that time of purchase, and on subsequent occasions, that the Motorbike was intended as a gift from you to me which I accepted in lieu of the work I carried out at a house you owned in xxxxxxx and that you did not wish to be repaid.

4) Even if you thought it was a loan under section 5 of the statute of limitation act 1980 any claim would be statute barred after 6 years as this happened in either 2006 or 2007.






If you have any documentation signed by myself please be aware that I am entitled to see this and urge you to forward a copy of this onto me.






Please be aware I intend to defend any claim you may bring.

[lspeakman]

Re: Family member demanding money over a gift

I have a similar situation, my dad lent some money over £5000 to a family member around 2010 - he made me aware of it and said no monies had been repaid despite asking for some back as he was over 80 and needed the money for a car.
The family member said it was a gift !!! .....no paperwork signed on either part but as my dad was on Pension Credit this was his life savings and thats all he had.
Any suggestions??

[Mineral1]

Re: Family member demanding money over a gift

thankyou, how about this,
My position is as follows






1) No money was ever given to me, nor was anything signed or agreed by me.

2) You purchased a motorbike with your bank/credit card at FastKats Motorbike shop in xxxxxxx for the price of £1500.

3) You indicated to me at that time of purchase, and on subsequent occasions, that the Motorbike was intended as a gift from you to me which I accepted in lieu of the work I carried out at a house you owned in xxxxxxx and that you did not wish to be repaid.

4) Even if you thought it was a loan under section 5 of the statute of limitation act 1980 any claim would be statute barred after 6 years as this happened in either 2006 or 2007.






If you have any documentation signed by myself please be aware that I am entitled to see this and urge you to forward a copy of this onto me.





Please be aware I intend to defend any claim you may bring.

Excellent. Now the main thing to remember is that the statute bar does NOT stop your uncle bringing a court claim, he can still go get a County Court Judgement UNLESS YOU DEFEND IT. If you should suddenly get a claim then you have to come straight back here as there is a very tight window of just over 2 weeks to acknowledge and put in your intention to defend.
HOWEVER the good news is.... Unless your uncle can show you have either acknowledged (in writing) a debt over this period he is basically stuffed. Statute of Limitation is an absolute defense under the law for this type of claim and your uncle would be poorer for trying to claim.......
:tongue2: