Tips for recovering money owed from family members
Tips For Recovering Money Owed From Family Members
At Frontline Collections, we deal with many private debts matters where there is a need for recovering money owed from family members whatever the scenario. For example personal loans, goods bought on behalf of others etc whatever the scenario, there is usually a solution.
The issue of private or personal debt is far more common than you think with research showing that in 2016/17 nearly a third of Britons have fallen out with a friend or family member over an unpaid debt of £100 or less.
Legal solutions such as debt collectors, small claims courts and solicitors can be very effective but can also be avoided if you take practical steps to protect yourself and help recover your debt.
Below, we have compiled some straightforward steps to recovering from family members or friends.
1. Writing agreement – ALWAYS get a signed written agreement! It is essential If you are going to loan a friend and/or relative money. This may come across as bad-mannered but is it a necessary action, especially if you have any doubt that the money may not get paid back.
The written agreement should clearly state the terms of the loan along with any agreed repayment dates.
2. Repayment Schedule – If it is a large amount of money you are lending, why not suggest a repayment schedule, i.e. £££ every month or every quarter and set up a standing order into your bank account.
3. Document everything – If a payment date has been missed, peruse the payment with a friendly call, text or email. However, always make sure you keep all requests and correspondence as this will create a paper trail in case you end up involving a debt collector.
4. Don’t get confrontational – They have not paid you back, and although you may be annoyed it has come to this, try to stay calm and composed. Being confrontational will only result in a breakdown of the relationship and could lead to no repayment at all.
5. Take action – Hopefully it will not reach a point where the individual is unwilling to pay the loan back, but if this is the case, it’s time to call the professionals. Do not just write the debt off.
Remember recovering money owed from family members can be a complex and emotional process, so having a Professional, Leading Personal Debt Collection service at hand can help minimise the stress and emotional friction this can cause.
There is also the option of trying the services of a Law firm however this will likely be a lot more expensive in the long run as Solicitors usually charge by the hour, on average £200 per hour that they can be very expensive and can protract the matter however they may be a more appropriate option if the matter is disputed.
Usually, using a Professional Debt Collection Agency to recover monies owing from Family members is considered to be the frugal way to deal with the matter depending on which service you use.
For further information on using Frontline Collection’s Private and Personal Debt Collection services, speak to a Professional, friendly Collections Adviser today by calling the helpline on 0333 043 4426 who will provide a free and frank assessment of your situation. All enquiries are completely confidential.