Ask Amy: Family loan turns relative into scofflaw

Wednesday, 15 November 2017, 05:14:23 AM. Advice for the real world.
Dear Amy: I loaned some money to a young relative to buy a used truck. His mother thought that because he didn’t have any credit record yet, he would learn to make payments on a regular basis by paying me, in addition to having a vehicle he needed for his job. We signed an agreement, which specified how much he would pay (both principal and a low interest rate) and how many payments he would make. He made the first few payments, but then stopped paying altogether. I have tried to get in touch by phone, email and paper mail, with no results. I left messages that expressed concern, not anger, asking that he please contact me to discuss the situation. He hasn’t lost his job. His mother knows he stopped paying, but doesn’t know how many payments he has missed. I don’t want to cause a scene at a family event where he might be present. I just don’t know what to do next. — Perplexed Dear Perplexed: There will be no scenes at family events, I assure you, because your young relative will not show up at any events he suspects you will also attend. That’s the problem with lending money to friends or relatives: It creates problems when the money is not repaid. This young scofflaw will ghost you, rather than face a fairly straightforward problem in a mature way. I’m not sure why your relative’s mother thought this loan (from you) would be a good idea; she could have co-signed a bank loan with her son, unless her own credit is poor. At this point, you might start by asking a lawyer to send...Read more
Share this

You might also like

Similar