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Dilemma loaning money

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  • 11-04-2005 2:15pm
    #1
    davidoco
    Registered Users Posts: 656 ✭✭✭


    I know somebody who needs some money €10,000 urgently no strings attached to get out of a fix (nothing illegal). I want to give him €10,000 and he will agree to pay me back in six months time at 1,000 per month over ten months (no interest)

    I can get a document drawn up by my solicitor detailing the deal etc

    But

    Is it legal?
    Am I then a moneylender?
    Am I allowed to loan money like that, and if so can I enforce the debt in the Courts if he defaults?
    Could I get him declared bankrupt if he defaults and/or register a judgement?

    My solicitor is useless as all he knows is how to sell and buy property and the District Court. Anything else he has to get the option of a barrister €€€€. I don’t have an accountant.


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    #2
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    I basically think you will be alright, though I can't point you to the legislation, and I don't know definitively. (The relevant definition seems to be in the Moneylenders Act 1900 and amendments, though I can't track it down.) However, you obviously aren't engaging in moneylending as a business. Even if what you were doing somehow required a licence (which I doubt) it wouldn't necessarily make the debt unenforceable.

    I would ring the IFSRA and ask them for the definite line. Follow up with a letter to the chairman if you are unhappy with the level of detail in the response. Be sure to note down who you spoke to there. Keep pressing them until you get a decent answer. It's what they're there for.

    You should in principle be able to do all the horrible things you mention to your acquaintance. I don't know if it would be very satisfactory - a lot of grief and hassle if it came to that -. There's good money in moneylending, especially on the 'sub-prime' end, but there's a good reason that not everybody is diving into it. (I assume when you mention all these legal recourses that you wouldn't consider doing things the 'heavy' way.)

    I don't think an accountant would be much help to you.

    It would be a good idea to get a lien of some sort on collateral if it were possible.


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    #3
    De Rebel
    Registered Users Posts: 1,109 ✭✭✭De Rebel


    Reality Check: That’s a considerable sum of money. Generally speaking money and friendship don't mix very well.

    If he is good for the repayments, a bank loan should not be a problem.

    It you must go ahead, get a good solicitor to advise you. Ditch the conveyancing deadhead.


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