Recovery of money from a loan agreement
I have a signed loan agreement with a person, who consistently misses payments and when he makes them he never makes them to the value agreed to in loan agreement. The original value was around R400 000 and now stands at just over R250 000. The amount keeps growing as payments are inconsistent. I have reason to believe there is no intent to repay the money at all. How can I go about forcing the loan to be repaid.
Reading through your question, my understanding of it is that the loan was unsecured meaning that you lent out the money to the individial in question without any collateral to secure repayment. This type of loan is refered to as high-risk, and the reason is simple…in the event of default by the borrower, the one option available to the lender in order to compel the borrower to repay is through legal action. You may therefore proceed by issuing summons upon the borrower. Thank you.