Ex partner wants interest

[dawny41]

Hi, please can someone give me some advice,

I was in a relationship and my partner loaned me £3,800 for new windows, the agreement was that i pay him £150 a month until the loan was paid, he took £2,800 off his credit card and £1,000 from his bank to lend me the money, We have since split up and he is now asking me to sign a loan agreement for £4,800 with an APR of 32.9%. He added £1,000 to the loan as he had bought me a TV as a gift but he now wants the money for it. I have just recieved a letter from his solicitor asking me to sign this agreement and have been given 7 days to reply. What should i do?

If I had known that the interest on the card was so high i wouldn't have borrowed it from him, he didn't ever mention interest only pay back £3,800 on the 25th of the month at a rate of £150.00. The TV he bought was a gift. I Have been paying the stated amount every month without fail.

Any advice would be a help to me.

Dawn.

[rory32]

I was in a relationship and my partner loaned me £3,800 for new windows, the agreement was that i pay him £150 a month until the loan was paid

Was there anything in writing to this effect? Have you been paying him?

He added £1,000 to the loan as he had bought me a TV as a gift but he now wants the money for it.

Realistically he can forget getting the money back even if he takes you to court as it was a gift.

We have since split up and he is now asking me to sign a loan agreement for £4,800 with an APR of 32.9%

Whatever you do don't sign this. Even if he took you to court and won (bear in mind he would have to prove that the debt exists) he would not set the interest rate - the court would. I strongly suspect that this would be set at the statutory rate of 8%.

[dawny41]

Hi, Thanks for your reply.

No, there wasn't anything in writing, it was all verbal between us, I have been paying him £150. every month since July. I was paying the money onto a payment slip that he was giving me every month because he didn't want the money going into his bank account, He said it would look like a wage?? I have now set up a D/D I think that it is to another account or straight to the Card company, but, it does have his name on it. What shall i do about the solicitors letter?? I have 7 days to reply.

[rory32]

What does the solicitors letter actually state?

I have now set up a D/D

I would change that to a standing order as the amount of a DD can be changed by either party.

[dawny41]

Ok i'll change to SO.

He told his solicitor that i was aware of the 32.9% and that i had originally said that i would pay it back in full!!!

The solicitor has asked if i can borrow the £2,800 to pay the credit card off and continue to pay the £150. per month until the balance is paid at the standard rate of 8%. I am not in a position to do this, my ex knows that. He has stated that he will put a charge on my property and end up owning it?? I dont know wat to say to the solicitor in response!!

[rory32]

He told his solicitor that i was aware of the 32.9% and that i had originally said that i would pay it back in full!!!

 

He would have to prove that in court. This would be more than a little difficult for him to do as he has no written agreement to confirm this.

He has stated that he will put a charge on my property and end up owning it??

What complete rubbish. He would first of all need to prove that the debt exists and the amount of the debt - he is not really in a position to do either. If he could do this then a CCJ would be issued against you and a time order giving you time to pay in installments based on your ability to pay (this would be set by the court). Only if you defaulted on this would he be able to go for a charge on your property. He would not own your property nor would he be able to force the sale of the property.

 

Could you please tell me what the letter actually states.

[dawny41]

Hi,The Solicitors letter.We have recieved instructions from our client who informs us that he loaned you £4,700 in June this year. We understand that when he loaned you this sum you had intended ti re-mortgage your property and repay him promtly. We further understand that you were unable to repay him from the money raised from your re-morgage because of circumstances beyond your control.Our client informs us you are aware that £2,800 of the money he lent you was borrowed on a credit card and he is paying interest at 32.9% in view of the fact that the only purpose for him to borrow this money was to lend to to you, we are sure that you will accept that he should not need to pay this interest from his own pocket, but that you should be responsible for it. We understand that you are currently paying at a rate of £150 per month, which means that it will take considerable time to to clear the credit card debt and that the interest will be significant. We have seen a copy of the loan agreement which our client forwarded to you which appears to be reasonable, under the circumstances. We understand, however, that you are not agreeing to pay any interest on the sum he lent you. In order to avoid paying the high level of interest, the only option is to raise the sum owed to our lient and re-pay it in full.This would enable our client to clear his credit card.We wonder whether you would be able to raise the £2,800 in which case our client would be prepared to accept payment of the balance at a rate of £150 with the interest at the statutary rate of 8%. To add certainty to the verbal agreement between you it would help if we could agree onthe terms of a written agreement s that you both know where you stand with regards to future payments. We would be grateful if you could respond in 7 days with your proposals for settlement of the debt, inclusive of interest.we look forward to hearing from you.My ex originally told me he had A1 credit, the card was a new American express with a balance of £10,000, i know that he was nearly up to the max on the card, he told me he had paid it off, surely he would have had 0% interest on it for a while or transfered it to another with no interest?? he told me so many lies i don't no what is the truth.

[caledfwlch]

Wouldnt the ex partner need to hold a consumer credit licence to charge interest on a "loan"?

[rory32]

To add certainty to the verbal agreement between you it would help if we could agree onthe terms of a written agreement s that you both know where you stand with regards to future payments.

It would certainly help him. It doesn't help you at all.

[ScarletPimpernel]

It seems to me that without a written agreement, the claimant will struggle to prove his case. The wording of the solicitor's letter suggests that they are aware of this.

 

I note that the solicitors are also in breach of the OFT Guidance on Debt Collection:

 

We wonder whether you would be able to raise the £2,800

 

In the circumstances, I'd be inclined to reply along these lines:

 

Dear Reptiles

 

I refer to your letter dated (date), the contents of which are noted.

 

The facts are that no formal agreement was entered into, and that there was no agreement to pay interest. The television that X bought, the cost of which he is now attemting to claim from me, was a gift. You have failed to produce any evidence to the contrary, presumably because none exists. I am, therefore, content to continue with the existing arrangement until such time as the amount of (original sum) is repaid.

 

Your client's contractual obligations to his creditors are entirely a matter for him.

 

Yours etc.

[dawny41]

Thank you,I have compiled the letter, awaiting with baited breathe the response,Thanks Dawn.