unsecured loan - immediate repayment demanded

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coolhandluke

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My brother got an unsecured loan off another relation of 100,000 over 10 years to purchase an apartment. He signed a piece of paper to this effect and gave it to the lender.

Three years on he has paid 30k, but the lender is now demanding an immediate payment of 30k which he can not possibly come up with, the lender is now threatening legals.

What can the lender actually do here ?
 
Your brother still owes k70.
Suggest mend any fences that may need mending.
Meet relation and honestly explain why he cannot come up with k30 immediately and agree a repayment pattern that is achievable.
 
Gerry Canning said:
Your brother still owes k70.
Suggest mend any fences that may need mending.
Meet relation and honestly explain why he cannot come up with k30 immediately and agree a repayment pattern that is achievable.
Click to expand...

Lender has become completely unreasonable, not willing to discuss any options even with me. Simply demanding 30k or else.........

Brother agreed to a payment plan originally that was achievable, has stuck to it and is not in a position to pay anymore at this time.
Brother says that he will be in a position to refinance in 12 months, but lender will not even accept this.

Any suggestions ?
 
coolhandluke said:
Simply demanding 30k or else.........
Click to expand...

or else what?

As demoivre pointed out, your brother does not appear to be in breach of the contract, so he has no obligation to pay it off early.

Even if there is some clause to pay it off early, there is really nothing the lender can do to enforce it.

Brendan
 
coolhandluke said:
He signed a piece of paper to this effect and gave it to the lender.
Click to expand...
Seems a dodgy enough contract from the lenders perspective! Did both parties sign the agreement? Did he keep a copy himself?
To be precise the lender does have options if the contract was not signed by both parties or if the Terms of repayment were unclear. He can sue for the amount and case will be heard in Court. It will be the Court's decision as to whether your brother is complying with the "agreement". To protect himself your brother should write to the lender re-stating the terms of the original agreement and that he intends maintaining the repayment terms agreed. Most likely this break-down may be due to a family disagreement and perhaps involvement of another family member could resolve the issue satisfactorily.
 
Only my brother signed the "agreement" an iou stating the term of the loan and the amount payable each month, but he does have a copy of it. Bank statements etc will also back up the 3 years of payments at xxx per month.

Lender is adamant she wants 30k immediately, it's simply not possible according to my brother as there is no extra money there.

A no. of family members have tried to speak to the lender, but there is no reasoning with her.......she appears to becoming completely fixated on this issue.

Hopefully legal advice will steer the lender onto some sensible course.........as you can't get blood out of a stone.
 
Does your brother or anyone know the reason for the sudden demand? Knowing that might give rise to a means of managing it.
 
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