Recovering a debt under a receipt or loan

What is happening

An acquaintance borrowed a large sum "until the summer" and signed a receipt. Two summers have now passed, the borrower answers calls with promises, and in the last conversation claimed never to have taken the money at all.

There is no receipt: the money went by card transfer in several instalments, and the chat mentions "the debt" and "I'll pay it back". The lender fears that without a signed paper nothing can be recovered.

The receipt gives no repayment date, several years have passed since the loan, and the lender is not sure whether it is already too late. Along the way it emerges that the borrower owes other creditors too, including banks.

What the law says

• Loans between individuals are governed by the Civil Code. A borrower's receipt or other document confirming receipt of the money evidences both the loan and its terms, and the lender still holding the original receipt generally indicates that the debt has not been repaid.
• Where no repayment date is set, or repayment is on demand, the borrower must repay within 30 days of the demand. A written demand with proof of dispatch is therefore the first practical step.
• The limitation period under the Civil Code is three years. For a loan with a fixed date it runs from the day repayment fell due; for a loan with no date, from the end of the period allowed for meeting the demand. A written acknowledgment of the debt by the borrower interrupts the limitation period.
• As well as the principal, the lender can claim interest for the use of the money where the receipt provides for it or the Civil Code implies it, plus interest for late repayment. Small loans between individuals are treated as interest-free unless the receipt says otherwise.
• The borrower may argue that the money was never actually handed over. Where there is a receipt, the burden of proving that lies on the borrower, and as a rule witness testimony is not admissible for the purpose.
• An undisputed claim under a written transaction within the summary-procedure threshold can be pursued by a court order without a hearing; if the debtor objects, the order is set aside and the matter proceeds as an ordinary claim.

What we do

• We analyse the receipt or the correspondence: who handed what to whom, on what terms, and whether a date and interest were agreed.
• We check limitation and look for any acknowledgment of the debt that may have interrupted it.
• We prepare the demand for repayment and arrange for it to be sent with proof of receipt.
• We choose the route: an application for a court order where the debt is undisputed, or a claim with interest calculated.
• Where there is no receipt, we build evidence of the loan from transfers and messages and, if that falls short, consider a claim for unjust enrichment.
• We apply for interim measures, freezing the borrower's assets or funds, where there is a risk they will be moved.
• We obtain the writ of execution and follow the recovery through with the bailiffs.

What we will need from you

• The receipt or loan agreement: a copy will do for the first meeting, but the original will be needed in court.
• Bank statements for any transfers, if the money was sent by card or account.
• Your correspondence with the borrower about the debt, including voice messages.
• The borrower's details: full name, registered address and, if possible, date and place of birth, any property you know of and their employer.
• Details of any part repayments: when and how much.