Make sure you do get your money back

Soccer Laduma - - Make Your Point -

IF you lend money to a friend, neigh­bour or some­one from church, you de­serve to get it back.

Here’s some great le­gal and prac­ti­cal ad­vice from Scor­pion Le­gal Pro­tec­tion to make sure you’re not taken ad­van­tage of.

Lend­ing money to some­one means you have the in­ten­tion of get­ting it back.

The best le­gal ad­vice we can give is that when you lend some­one money, make sure you have a signed ac­knowl­edge­ment of debt in place. This writ­ten agree­ment should in­clude: The name of the lender The name of the bor­rower The date you lent the money The amount you are lend­ing The date the money must be paid back (or dates if you have agreed on be­ing paid in in­stal­ments, and when the last in­stal­ment will be paid)

The date when the ac­knowl­edge­ment was signed

If you make a ver­bal agree­ment, make sure there is a re­li­able wit­ness present. We strongly sug­gest you sign a writ­ten agree­ment as well though, be­cause deal­ing with ‘he said, she said’ can be tricky and tough to prove.

It is very im­por­tant to note that you can­not charge in­ter­est when you lend money. Only a fi­nan­cial ser­vices provider like a bank can. Tips

If the amount is less than R15 000 and the per­son does not pay, you can take them to the Small Claims Court, which is free to the pub­lic. You are not al­lowed le­gal rep­re­sen­ta­tion in the court.

Don’t wait un­til it’s too late! If the per­son you lent money to has not paid you back three years af­ter the agreed-on pay­back date, legally you could lose the right to claim back your money.

Note: This is not fi­nan­cial ad­vice. This is ba­sic le­gal ad­vice that should not be re­lied on solely.

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