How do I go about collecting a debt from a (so-called) friend of the family?
December 12, 2005 1:50 PM Subscribe
I really need AskMefi's collective wisdom on this one. How do I go about collecting a debt from a (so-called) friend of the family?
posted by anonymous to Work & Money (28 answers total)
I'll try to keep the facts simple. Almost a year ago my wife lent some money ($3000) to a friend of hers in order to help fund her jewelry business. This money was supposed to be paid back within two months and was not. The reasons for this seemed understandable at the time. However a few months later my wife loaned her another $1000. The theory being that this was all the capital needed to get a return. (Said "friend" buys jewelery wholesale and then resells it at jewelry fairs around the country).
Now it gets messy. My wife gave this individual her credit card number in order to fund the wholesale purchase. In addition to the $1000 agreed upon there was an additional $1500 placed onto the card without permission. To make a long story short, very little of the money has been repaid - my wife has tried to resolve this in many ways short of calling the police. The issues are complicated by the following facts: we are not geographically close to this individual so we don't see her frequently; our young son and the individual's young son were friends before all this happened and lastly there is a strong suspicion that there may be drugs involved, meaning that we think she (and her husband) are psychologically addicted to pot. There is much evidence to support this- in addition to past observation there is always another excuse about the delay of money.
I have agreed to take over this issue from my wife. I see the complications with the initial $3k being that we only had a verbal agreement (which was a really bad idea I know). I'm really at a loss as to how to start getting back our money, which is around $5000 at this point. I feel like I have to make very clear to this individual that a plan is needed to return our money. At this point I would be happy getting our original funds back, never mind the "interest" we originally agreed upon. Any advice appreciated!