Australia's leading provider of affordable DIY legal kits
Call our Customer Care Specialists on 1300 728 200
   

Legal Forum

Welcome to the FREE AussieLegal Forum

This FREE legal forum is supported by participating lawfirms in your local area.
The information contained in this public forum, and any comments made by the administrators, it's appointed mediators, or members of the public are of a general nature and may not be regarded as financial or legal advice in any way. We recommend that you seek formal advice from a practicing solicitor or licensed financial advisor regarding your particular situation. By registering to use this forum you meet the above criteria and agree to abide by all of the above rules and policies.

To be sure we provide you with the most relevant information to your state, please let us know which state you your legal matter resides in:

ACT  NSW  NT  QLD  SA  TAS  VIC  WA  

AussieLegal recommends this law firm:

  FAQ FAQ  Forum Search   Register Register  Login Login

Loans & car purchase made to step son

 Post Reply Post Reply
Author
  Topic Search Topic Search  Topic Options Topic Options
Jolie View Drop Down
Newbie
Newbie


Joined: 01/August/2015
Location: Australia
Posts: 1
  Quote Jolie Quote  Post ReplyReply Direct Link To This Post Topic: Loans & car purchase made to step son
    Posted: 01/August/2015 at 11:10
Hi everyone from a first time poster, but long time reader and learner !

Sorry it is a bit long, and most importantly please don't be judgemental, there is a lot more to the story that is relevant to our situation - but not relevant for my question.

My husbands son (my stepson) owes us a combination of debts. Some was straight cash loans, some was paying a bill for him when he had no money, and the big one was the purchase of a car for him (which he later sold at a huge loss less than 1/3 price as he needed money). Bought him a second car, he did the same thing and sold it.

Total costs would be between $5000-$6000 out of our pockets.

At the time most of these loans happened, he was 17, but he has since turned 18. He has promised too many times to pay us back, but nothing has ever arrived.

Quite frankly we are sick of the promises and lies and we want to know where we stand with taking any kind of action to get some money back. We are not well off by any means and don't have much in the way of cash or assets.

You might think it is harsh for parent/step parent to want to take action, and please don't say that's what parents do, but he just weeks ago he got finance on an almost new brand car he is happily showing off, got a huge piles of tattoos done, got a rental with his new girlfriend etc. and is spending money everywhere while running up debts.

Note - he does has a very bad history of spending money, he received a $15000 compo payout when he turned 18 and it was gone within months. He has a large credit card debt, has taken out small loans with places like Wizard, Nimble etc.

So yes I understand that the chances of getting it are remote, but it is not appropriate for him to owe people money, there needs to be some responsibility.

He has lied to us about selling the cars, lied about people stealing his compo money, lied about his new car etc, so there is a history of non-truth.

Any ideas of the first step to take? Should we just write him a formal letter stating the amount etc and give him a payment time? It seems logical to try that in case we need to escalate it further by any legal means, then we would have proof we tried.

Or is there a better option? Yes he will be pretty mad no matter what we do, but he needs to know life is full of accountability and not everything will go his way all the time.

If you can offer a non judgemental comment I would be very appreciative.

team2 View Drop Down
Newbie
Newbie
Avatar

Joined: 13/January/2012
Location: Australia
Posts: 21
  Quote team2 Quote  Post ReplyReply Direct Link To This Post Posted: 01/August/2015 at 20:22
Any loans you made to me under 18 you won't be able to get the money back as some one under 18 can't enter in to a contract. With the loans after he turned 18 do you have any proof that the money you gave him was a loan?

mathewsm View Drop Down
Newbie
Newbie


Joined: 07/February/2016
Location: Australia
Posts: 4
  Quote mathewsm Quote  Post ReplyReply Direct Link To This Post Posted: 07/February/2016 at 17:48
Ok, so it makes it hard that possible that no contracts were written up at the time of the loans? and could have been seen as gifts which he could claim this should you take further action and he defends it.

I am sorry but i would suggest that you provide no more loans to him under any reason,

My family have a rule, You only get 1 loan, and you do not get another until the last one is paid back.

I am guessing that if he has loans with Wizard and Nimble his credit file is not too crash hot, and companys have already been after him. Also I am guessing you maybe getting letters and strange phone calls from people not saying who they really are but asking for your Step Son? and they leave a message with a reference number?

if this is the case there is nothing stopping you contacting the company back quoting that reference and advising them of where your son lives and how to contact him, his employment etc etc. as your able to confirm his DOB they will accept this information and will most of the time will then start the legal avenue to recover the funds,

This does not help you get your money back but it will help with him Learning as you wanted and the best bit is that the company must respect your privacy and will not disclose as to where the information came from to your son, just a third party advised them,

I wish you luck, hold in there you will find that he will change one day!

webbrowan View Drop Down
Newbie
Newbie
Avatar

Joined: 12/May/2016
Location: Sydney
Posts: 19
  Quote webbrowan Quote  Post ReplyReply Direct Link To This Post Posted: 30/May/2016 at 14:13
Well, he is still your son, so the first thing I would do, is to stop doing him favours. If he needs a car, he needs to work out a way to pay you back. He is obviously taking advantage of you to get the cash rather than to use the car thinking that you'll just finance another for him later on. Get a lawyer to draft out an agreement for you, and let him man up for himself!

webbrowan View Drop Down
Newbie
Newbie
Avatar

Joined: 12/May/2016
Location: Sydney
Posts: 19
  Quote webbrowan Quote  Post ReplyReply Direct Link To This Post Posted: 30/September/2016 at 14:41
I agree with one of the commenters that since he was under the age of 18 when you first handed him a loan, it would probably be unlawful to draw up an agreement only now. However, you could give it a shot perhaps have him sign it in the presence of an attorney or a law official so as to make it official.
Best Regards
Rowan Webb

 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Want to save money?

Check out our list of do-it-yourself legal kits.

Need formal advice?

Let us help you find a lawyer who specializes in your particular area of law.

Need further information?

Visit our legal forum where you can ask questions and search for similar topics.