You helped someone out — a friend, a sibling, a partner, a colleague — and lent them money on the understanding you'd be paid back. Now the repayments have stopped, the excuses have started, or they've gone quiet altogether. It feels awkward, but the money was a loan, and a loan is a debt you can recover.
You don't need a solicitor and you don't need a formal contract. You need to show the court that the money was lent on the basis it would be repaid.
Your Right: Money lent to another person is a debt, recoverable in the county court. A written loan agreement helps, but it is not required — an oral agreement is binding, and your bank records and messages can prove the loan.
Loan or Gift? The Question That Decides It
The most common defence is "it was a gift". The court decides on the evidence. Anything showing you both treated it as repayable points to a loan:
- A message or email agreeing to pay you back, or discussing repayment
- A reference on the bank transfer such as "loan"
- Any repayments they already made, however small
- A note or text setting out the amount and the terms
Get your money back without losing the friendship to silence
JustClaim drafts your claim and particulars of claim for you and files it online — a clear, professional step that often prompts payment on its own.
Start Your Claim NowHow to Recover the Money: Step by Step
Put your demand in writing. A clear message or letter asking for repayment by a set date confirms the loan and is a sensible first step before court.
Gather your evidence. Bank statements showing the transfer, plus any messages about the money or repayments already made.
Send a letter before action. A formal letter stating the debt and a deadline to pay is required before you issue proceedings.
File your claim. If they still don't pay, file an N1 at the county court for the outstanding sum, interest and the court fee.
What You Can Claim
- The outstanding balance of the loan
- Interest (under section 69 of the County Courts Act 1984, usually 8% a year)
- The court fee
Watch the time limit: you generally have six years to claim, but the clock may have started when you lent the money rather than when you ask for it back — it depends on the loan terms. If the loan is getting old, don't delay, and get advice on your specific dates.
Frequently Asked Questions
Can I sue a friend or family member for money I lent them?
Yes. Money lent under a loan is a debt and is recoverable in the county court, even between friends or family. You do not need a written loan agreement — bank transfers, texts, WhatsApp messages and emails can all prove the money was a loan and not a gift.
What if there was no written loan agreement?
An oral loan agreement is still legally binding. The key question is usually whether the money was a loan or a gift. Evidence that you expected repayment — a message agreeing to pay you back, a reference on the bank transfer, or a repayment that was already made — tips it firmly towards a loan.
They say it was a gift, not a loan — what then?
The court looks at the evidence. If you can show any agreement or expectation of repayment (messages, partial repayments, a note of the terms), the court can find it was a loan. The more contemporaneous evidence you have from the time, the stronger your case.
How long do I have to claim money I lent?
Usually six years — but when that period starts can depend on the loan terms. For some loans that are only repayable once you ask for the money back, time can run from the date of your written demand. For an informal loan with no repayment date, it may instead run from when the money was lent. Don't assume you have unlimited time: if the loan is more than a few years old, get advice on your specific dates.
How much does it cost to claim back a personal loan?
Court fees start at £35 for claims up to £300 and rise with the amount (for example £80 up to £1,500, £115 up to £3,000). The fee is added to your claim and recovered from the borrower if you win. No solicitor is needed for a small claim.