Refusal to pay back loan
Hi, I made a loan at a bank for a friend and her fiance. They paid me back the loan 50/50. They recently broke up and he now refuse to pay back his part on the loan repayment. Unfortunately I do not have a written contract with him but she is willing to do a affidavit that they both agreed to pay me back the loan. What can I do?
The reason why it is encouraged to reduce contract in writing is to enable easy ascertainment and proof of the terms and conditions. Short term loan without collateral to secure its repayment, as with your case, is categorised as high risk. However, the fact that she was privy to the contract and now prepared to adduce affidavit in support is very good. Regrettably, you are not entitled to any protection under the National Credit Act. Your only remedy is the court but before you approach, draft a letter of demand and send to him. Give him 14 days to pay failure which you will take him to court. You can google search template for letter of demand.