I Loaned Money That Was Never Paid Back...

Updated: Oct 29


Cross out icon over a payment. Secondary icon of a dollar sign hovering over the palm of a hand.


The best way to get what you want is to ask for it. The first step to getting your money back is to write and send a letter demanding payment (better known as a demand letter) and making it clear to the other party that you will sue if they do not pay. Many people end up paying after they receive a demand letter. This means you may never have to end up in court. But if you do go to court a good demand letter will satisfy some court requirements that you have formally asked the other party to pay.

An effective demand letter is one that clearly tells the other party what you want and that you are serious about doing what is necessary to get it.

There are important facts about your dispute you should include in your demand letter. These include:

  • The date of the loan agreement where the other party agreed to repay the loan.

  • The date that you loaned out the money

  • The date(s) for when the other party was supposed to repay you for the loan and how much was due for each date.

Let’s go through an example of identifying the dates when the other party was supposed to pay you and how much was due on each date.


You made a $2000 loan to the other party on 9/22/20, and they agreed to pay you back in 2 monthly payments of $1000 each.  


You both agreed that if they do not fully pay you back 3 months after the final due date, there will be $100 interest. 


The other party paid you back $500 four months after the final due date.  


The dates, amount due and interest due would be:

Date Amount due Interest due

10/22/20 $1000 $0

11/22/20 $1000 $0

02/22/20 $0 $100


Date Amount Repaid

03/02/20 $500

If you are unable to recall any of these dates, you may have a hard time proving the case in court. To recall this date, consider any written documents (e.g. emails, text messages), or any witnesses who may have overheard your conversation with the other party.

To learn about other important information that should be in your demand letter read Everything You Need to Know About Demand Letters.

If you need assistance with your demand letter, visit us at JusticeDirect.com and we will guide you step-by-step thru the process.


 

NEED HELP WITH YOUR JUSTICE JOURNEY?


The quest for justice is never easy, particularly when it comes to getting your money back. However, thanks to advances in technology, it has become easier. Quest for Justice’s first app, JusticeDirect, is the only app of its kind designed to support people without lawyers resolve their dispute and get their money back, both in and out of court. The first step to getting money back is through a letter demanding payment from the other party JusticeDirect offers customizable demand letters for free. If the letter demanding payment does not work, then the next step is taking them to court. JusticeDirect* will guide users every step of the way through the small claims court process by helping them:

  1. Understand the legal process;

  2. Evaluate the pros and cons that come with taking someone to court;

  3. Generate small claims court forms; and,

  4. Avoid common mistakes when filing your forms and serving notice on the other side.

*Currently, JusticeDirect can only help litigants sue in California’s small claims court.

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