I loaned money to someone and didn't get paid back, what can I do?

Updated: Apr 28

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.

JusticeDirect.com to Help You Write and Send a Demand Letter

Quest for Justice (Q4J)'s first product, JusticeDirect Demand Letter, will help people without lawyers draft and send a customized letter demanding payment, free of charge. Rather than use a generic sample demand letter or a template, JusticeDirect will guide users step-by-step to prepare and send, via USPS Certified Mail, a professional and personalized demand letter. The system helps users avoid common mistakes that often delay justice. Whether you are owed money or you are not happy with services or goods you already paid for, sending a detailed and professional demand letter is the first step to being taken seriously in the legal process and getting the justice you deserve. A simple, fast, and effective way to get your money back.

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