How to Deal with a Dodgy Supervisor at a Work Place?

vchar on 27/03/2018 - 11:35
Last edited 27/03/2018 - 19:46 by 1 other user

Hi folks,

Let me know if this is not a right place to ask such a question and admin please delete it if inappropriate.

I'm currently working an extra job at a factory as a casual with many other part-time and full-time staffs. We all have a supervisor who keeps borrowing our money and never pays us back. He borrows money from each of us from around 500AUD to several thousand with a promise of paying us in a day or a week but it has never happened.

Recently, he is on holiday trip and before he begun his journey, he asks everyone some more money again but none of us offers him this time. After he left work for his trip, yesterday we come together and we start to realise that he has owed some of us for years and some for months or weeks. We've also learnt that he also owes staff working at other sites of the factory.

Not enough, yesterday he called everyone at least 10 times plus some SMSes, while we were working, to ask for money by transferring to him while he is abroad, sick. We are kind of anxious to deal with him when he resumes his work.

We are kind of sick and we are now trying to find a solution. We think of either

  1. Reporting him to the company to take him off
  2. Or resigning from work

We also consider to take some legal actions but we aren't sure if we can do anything.

If anyone has some practical solutions, please kindly share with us.

Note: we are in a team of roughly 10 people and he verbally borrows us, no document of the case.

lol one more fun, he just called a guy working with me to ask for the money the guy promised to lend him. The guy refused to lend him more as he becomes aware of the situation. The supervisor said to the guy on a loud speaker that "you should hold your promise as you are being a man" while he has never paid his debt owing to us.

Regards,

Thanks for your great sharing, folks.

To make it clearer, none of us is stupid and wants to waste our hard earnings on such a dodgy guy but there are three reasons involved which led to our financial offers to him.
1. we genuinely want to help him as at least he is being our supervisor or workmate. we have never met someone such a dodgy person.
2. he has made things hard until he is able to take financial advantage of us. most of us haven't been aware of this until lending him the money.
3. none of us discusses this with the other as we don't want to harass him which leads to the mass.

Basically, he abusively uses his position to gain financial advantage from his subordinates.

Again, helping someone is not a stupidity although we are experiencing this unfortunate incident. we wouldn't mind helping another but we will do it wisely, cautiously and carefully. We believe there are people genuinely need help. AND I hope and wish anyone who thinks financially helping someone is a stupidity will never experience any difficulties in their lives which forces them to ask for financial help from anyone, God bless you, dude.

A little more, we have considered the loan amount as a loss and we don’t expect a payment from him but we don’t want to let him go easily. We also want to stop this from happening again that’s why I’m here to ask and get great ideas from every genius. Your great contribution is very helpful and will help many staff out there. Once again, thanks

Education & Work

Comments

  • coco1458 on 27/03/2018 - 11:39
    +32

    Keep all official records and report him immediately

    • vchar on 27/03/2018 - 11:41

      where to report him? what official records? regards,

      • coco1458 on 27/03/2018 - 11:49
        +14

        To HR.
        Like make sure you keep those texts he sent you

      • EightImmortals on 27/03/2018 - 12:35
        +14

        Make a list of everyone he owes money to, the amount and the date of the loan (if known). The IMMEDIATELY report this twerp to the company, the manager above him etc. If they take no action then I'm sure someone will pipe up here with the appropriate government dept. to contact (police probably).

        • Scrooge McDuck on 27/03/2018 - 14:24
          +6

          I've never heard of a situation like this and I'm frankly amazed that so many staff were so credulous.

          I would call FairWork to discuss the matters, they should be able to advise you on how to proceed.

          The police won't be interested since these aren't criminal matters.

        • Scrooge McDuck on 27/03/2018 - 15:02
          +8

          @Scrooge McDuck:

          I don't like their chances of recovering the loans, it doesn't sound like there's enough evidence to pursue the matters in court. In future:

          • Don't lend anyone anything you can't afford to lose.
          • It's perfectly OK to refuse.
          • Consider whether your relationship is worth less to the debtor than the amount of the loan. If so, it is a very risky proposition.
          • Assess the debtor's ability to repay the loan by the due date.
          • If you do decide to lend, write up a contract fully quantifying what you are lending and by when it must be repaid. Require the debtor to sign and date it before anything is handed over.
          • Consider holding some of the debtor's property as security for the loan.
          • Don't lend to someone who already has an outstanding loan.
        • Finde on 27/03/2018 - 23:48
          +7

          @Scrooge McDuck:

          While that would be true in a single case as it would be a civil matter, the fact that he has done it to so many people over a period of years could potentially help prove an offence of obtain property by deception.

          A statement would need to be obtained from every person he has borrowed money from. The thing police usually can't prove which makes them a civil matter is that he dishonestly obtained the property. The fact he's done this to so many people could potentially prove the dishonesty. The dishonesty being that he never intended to pay the money back.

          Edit: I'm reference to police not being interested

        • OzzyOzbourne on 29/03/2018 - 12:39

          @Scrooge McDuck: fraud, coercion, blackmail

        • whooah1979 on 29/03/2018 - 13:51

          @OzzyOzbourne:

          fraud, coercion, blackmail

          two of these are criminal offences. it doesn't sound like op's version of events are covered by either of them.

      • ozzpete on 28/03/2018 - 11:31
        -1

        Start with everyone who has any inappropriate communication or correspondence with him from now on, have it written down and signed by the person who witnessed it.
        Also, everyone involved should keep all text messages and/or emails. Emails are eveidence these days, as I found out recently from my lawyer. Text messages might be evidence also.
        If he has called, there is also evidence on persons phone thay he called on certain dates and times (even if you cannot prove 100% what was talked about on phonr call, it still shows he called at that time). He might say "no I didnt call that person at all" , then you prove him lying with phone records. Especially phone records fpr person who just now lend him more money after phone call. Phone records can be accessed as an official record, through your phone company also, maybe call phone company, if it comes to that.
        Document document document, record EVERYTHING and that counts as an "official record" of sorts.
        Definitely make official report to the company. Keep copies of official report to company, and keep copies of any evidential documents or records you submit.
        Once supervisor is fired (or removed from being your supervisor) , then you can probably take the debts he owes to 'small claims court' . But maybe its not worth trying to get money back through courts, because he might not have the money to pay back. He might have gambling problem or drug problem. If he never has any money, then courts ordering him to pay wont help much anyway.
        Take from it a lesson learned. Not that everyone is dishonest. Most people are honest and decent people. But you need to be aware that some people, are dishonest and some of those are quite clever and sneaky at hiding their wrong doings.

  • Quantumcat on 27/03/2018 - 11:41
    +6

    As above, report to HR

    Hope you get your money back!!

    • JackyS on 27/03/2018 - 13:43

      HR, or direct line manager of the dodgy supervisor. I hope you have documented all of your record - money owed, date, proof of loans and conversation record. Everyone who wish to report should keep a log book.

      But honestly, unless you have strong proof of him borrowing your money, I wouldn't be very hopeful. He may get fired, disappear and it will be difficult to force him to return the money borrowed.

      Good luck!

  • onetwothreefour on 27/03/2018 - 11:45

    He's overseas now? He's never coming back so forget about him.

    • vchar on 27/03/2018 - 11:49
      +1

      lol, he is a citizen here and visits a country for his holiday only. Also, his whole family live in a Melbourne suburb.

      • dogboy on 27/03/2018 - 12:09
        +19

        So hold the phone, he is borrowing money from you guys to fund his lifestyle and now holiday? W..T..F! I have never heard of such a thing. Sounds like bikies may need to be involved to get all your money back.

        • [Deactivated] on 28/03/2018 - 14:58
          +11

          Actually the first time bikies has been the logical option.

        • buckster on 28/03/2018 - 18:36
          +3

          @voolish: I don't know, that Macca's thread about refusing to pull over to the side might have been suitable too

      • x853 on 29/03/2018 - 09:03

        Easy answer then - break into his house and sell his assets to recoup the loss

  • Fergy1987 on 27/03/2018 - 12:07
    +35

    Uhhh…No freaking way would I give my Supervisor money in the first place. He's a dog for even asking

  • djkelly69 on 27/03/2018 - 12:11
    +31

    Seems like a perfect opportunity (while he is away) to let the bosses/HR/whoever know exactly what is going on and force them to act on it. All 10 of you turning up in the boss' office should make a fair impression.

  • wannagrababargain on 27/03/2018 - 12:13
    +12

    There are two things here that need to be dealt with
    1. The supervisor who is abusing his position by borrowing money off his workers, knowing full well that the workers are unlikely to kick up a fuss for fear making waves and losing their job. He needs to be fired.
    2. Getting some or all of your money back.

    Since you have found out that this is happening with basically everyone in your team as well as previous teams it sounds like it has been going on a long time it is about time for this to be dealt with. You need to collectively get together, with all your phones as evidence, and go tell the General Manager or even the owner of the company that his has been happening and is getting worse. It is in their best interest to fix this as they wouldn't want their company reputation as being a dodgy place to work. If you just resign you're fixing the situation for yourself but condeming the poor future workers to this ongoing bad behaviour.

    As far as getting your money back, it seems unlikely to happen. Your legal route is a letter of demand and escalation of that, maybe talk to a solicitor who can write a letter on behalf of everyone collectively.

  • tsunamisurfer on 27/03/2018 - 12:23
    +2

    You guys are factory workers yet have spare $500 - $1000 to lend to an unknown without surety nor documentation.

    The supervisor is an unethical person yes, but if he is surrounded by people who willingly give up money at a drop of a hat, I can't blame him for his continued behaviour.

    Both parties are at fault here, if someone lends like this, they don't value their money and will soon be separated from it.

    • vchar on 27/03/2018 - 12:29
      +4

      First, the supervisor is not an unknown.
      Second, we don't mean to give up our money, but we are trying to help someone who is in need of our help.

      The issue is that the one whom we have helped falsified his situation to earn our help. We don't mind to help anyone who is in genuine need.

      • EightImmortals on 27/03/2018 - 12:38
        +12

        Looks like he had a genuine need to have a nice holiday at your expense. I hope you get your money back. And while it's good that are willing to help those in need it also wise to not give money to those who are exploiting you (once you find out).

      • tsunamisurfer on 27/03/2018 - 13:15

        Do they know him personally?

        Do they know his track record for being financially responsible?

        I doubt it.

        I would be ashamed if I was on holiday and I asked my subordinates with a bulk SMS to lend me money. He lacks this shame, furthermore he doesn’t even believe his workers would mind either, such is his low regard for his workers. If the workers are lending him money they are at fault.

        • vchar on 28/03/2018 - 09:47

          some people have worked with him for years, except two of us includes me have been there for roughly 3 months. No one has his financial records as none of us discuss this matter with any others because we don't want to embarrass him.

      • Well Wasted on 29/03/2018 - 10:45

        stop playing stoopid… you've justified to yourself/s that you've done the right thing even when it's been proven that you haven't. slow learner or just slow? i bet you all catch the same bus to and from work…

      • trapper on 29/03/2018 - 14:24

        This is ridiculous, why would anyone just hand over cash like this? It's hard to understand… honestly wtf.

        Your money is gone, don't give your money to random people who are not friends or family… let this be a life lesson.

        • taoz on 29/03/2018 - 14:49

          Yea, sounds madness. People asking work colleagues for cash. Seriously why or who would just handover cash to work colleagues in the hundreds, borrowing 10 for lunch or so rarely is imaginable but not this and loads people.

          Is this workplace in Australia….

    • cookie2 on 28/03/2018 - 09:00
      +2

      sorry but only 1 person has done the wrong thing here. the dodgy supervisor using his position to pressure staff into lending him money.

  • [Deactivated] on 27/03/2018 - 12:26
    +9

    People who routinely borrow money with urgency usually have a gambling problem. People who have long term gambling problems have loan sharks.

    You're going to have to compete with a potentially dangerous debtor to get your money back.

    • Scrooge McDuck on 27/03/2018 - 20:13
      +4

      People who routinely borrow money with urgency usually have a gambling problem.

      Or drug problem.

      You're going to have to compete with a potentially dangerous debtor to get your money back.

      *creditor

      • [Deactivated] on 27/03/2018 - 20:15
        +11

        Sorry about bad spelling. Was on drugs. Btw, can I borrow some money?

        • Scrooge McDuck on 27/03/2018 - 20:38

          Sure, got your car keys with you?

        • WhyAmICommenting on 28/03/2018 - 08:35

          @Scrooge McDuck:?

        • [Deactivated] on 28/03/2018 - 10:46

          @Scrooge McDuck:
          I don't get the reference :(

        • ozzpete on 28/03/2018 - 11:34
          -1

          Sure man, as long as the drugs we getting are a good bargain ?

        • [Deactivated] on 28/03/2018 - 12:27

          @ozzpete:
          Bargain drugs are definitely not Blue Sky.

        • OzzyOzbourne on 29/03/2018 - 12:41

          If you're on drugs, you can do more than borrow money and get away with it. Just steal the money, cars, whatever else you like. It's just due to your temporary drug problem. Slap on the wrist.

  • whooah1979 on 27/03/2018 - 12:33
    +12

    supervisor who keeps borrowing our money and never pays us back.

    Classic gambling behaviour.

    • supajuicy on 30/03/2018 - 18:30

      agree - gambling or drug habit.

  • pformag on 27/03/2018 - 12:50
    +12

    Why would you lend a co-worker, who is not your friend, $500? If you are that stupid, then you don't deserve your $500.

    • [Deactivated] on 27/03/2018 - 17:34
      +8

      Huh. Stupid people don't deserve money. I have to remember this one.

    • martriv on 28/03/2018 - 15:43
      +1

      like you have never made a mistake - you are too aggressive, be more kind. +

  • try2bhelpful on 27/03/2018 - 13:11
    +3

    I agree with the comments that you should get together a list of everything that this person has borrowed, and who from, and go to HR ASAP. Particularly mention the bit about using the loud speaker to make the comment as that is something concrete you can pin him, on as many people would've heard the announcement. It sounds like this creep is taking advantage of you and needs to be stopped. I really don't think you will get your money back but, hopefully, this guy will no longer be a problem to you. If the company has any ethics at all it will want this guy out of there ASAP. This is definitly not a standard business practice in a reputable Australian company.

    • whooah1979 on 27/03/2018 - 14:57
      +1

      If the company has any ethics at all it will want this guy out of there ASAP.

      The company can’t normally dismiss an employee unless they’ve breached the terms of their employment. Is borrowing money from colleagues a breach of employment?

      • Quantumcat on 27/03/2018 - 15:07
        +3

        There may be a code of conduct

      • ThadtheChad on 27/03/2018 - 16:30
        +8

        Abusing their position of power to coerce subordinates to loan him money? That would be pretty high on the list as a fireable offence.

        • try2bhelpful on 27/03/2018 - 17:00
          +2

          Making the announcement over the PA is something they can use as the first warning - that was obviously harrassment of a subordinate. I also think that taking advantage of his position to borrow money from his subordinates would certainly be frowned on. It would also be interesting to see what language he used when he borrowed the money as that might also be grounds for bullying as well. It is either a loan, which he should pay back or he is extorting money under false pretences. Either way management will want to talk to him about it.

        • whooah1979 on 27/03/2018 - 17:03

          are you alleging that this person extorted money from his colleagues thought coercion or threats?

        • try2bhelpful on 27/03/2018 - 17:08
          +2

          @whooah1979: A superior doing this to a number of his subordinates is, effectively, using his position to coerce the money out of them. Given he is not repaying the money it could also, effectively, been considered as fraud. Even though there is no written contract the fact that he has done this to a number of people there could be enough to go to get this investigated. Management will be very interested in this.

        • whooah1979 on 27/03/2018 - 17:08

          @try2bhelpful:

          extorting

          something so simple as borrowing money has now made the leap to an indictable offence.

        • try2bhelpful on 27/03/2018 - 17:10
          +2

          @whooah1979: Borrowing money with no intention to repay is an offence. Not sure why you are defending the supervisor as what he is doing is definitely unethical and would definitely be something that HR should act on.

        • whooah1979 on 27/03/2018 - 17:11

          @try2bhelpful:

          has op asked this person to pay back or given the person an opportunity to pay it back?

          op's story aside. let the hear the other person's version of events.

        • try2bhelpful on 27/03/2018 - 17:15
          +1

          @whooah1979:

          "He borrows money from each of us from around 500AUD to several thousand with a promise of paying us in a day or a week but it has never happened."

          he gives them a timeframe and doesn't keep to it. I would say that is, pretty much, an opportunity to pay it back. Also given the sums involved, if he was legitimate, he would get the money back to them ASAP.

          When you borrow money off someone, particularly when you have given them a timeframe, you don't need them to ask you to pay it back you do it.

        • whooah1979 on 27/03/2018 - 17:18

          @try2bhelpful:

          Op’s version of events is half the story. We need the other half and then we can make informed allegation somewhere in the middle.

        • whooah1979 on 27/03/2018 - 17:22

          @try2bhelpful:

          why you are defending the supervisor

          I’m defending the other person’s rights to tell their version and to a fair trial by social media.

        • try2bhelpful on 27/03/2018 - 17:27

          @whooah1979: This is why I think the OP needs to alert the HR department to the practices and then they can indicate whether they think he is behaving in a manner that is conducive with his position in the company. I am pretty sure that HR are going to take a very dim view of this.

        • try2bhelpful on 27/03/2018 - 17:28

          @whooah1979: I really would love to see the Supervisor's view of this. I would love to see how he defends borrowing significant amounts of money off people who can ill afford it, tells them a timeframe to pay it back and then doesn't.

        • vchar on 27/03/2018 - 19:02
          +4

          @whooah1979: everyone has asked him for the repayment for months if not ages. everyone loans him their money because of his position. initially, he picks up everyone regardless they have made mistakes or not. Then he takes the opportunity to take financial advantage. Until he gets the money, he makes thing difficult.

  • garetz on 27/03/2018 - 14:13

    I actually saw this exact same thing happen many years ago, the person who kept asking to borrow money was in a supervisory position, and used the money to buy and use cocaine, dont expect to get paid back, at best he will be fired, at worst HR will say he did nothing wrong, unless he coerced you into the loans using his position, HR will do nothing.

    • Meho2026 on 27/03/2018 - 15:09
      +2

      The guy is harassing them, its bullying behaviour, the company has to act on that. They just need to make a complaint that they are being bullied not a complaint that he has failed to repay debts.

      • garetz on 27/03/2018 - 15:53

        How is he bullying ? Its obviously unethical behavior, but asking for loans isnt bullying unless like i said there is some coercive element involved.

        • try2bhelpful on 27/03/2018 - 17:03
          +2

          A superior asking for a loan from a number of subordinates looks pretty much like coercion to me; particularly as he is making no attempt to pay this back. It could be looked at by the company as soliciting bribes if he is not intending to repay; either way mangament will have a chat to him and start the warning process. The announcement over the PA is flat out harassment.

        • [Deactivated] on 27/03/2018 - 17:21

          @try2bhelpful:
          How do you accertain intent?

          Everyone has a natural right to ask for assistance, including personal loans, and everyone has the natural right to refuse.

          The supervisor is certainly being inappropriate but it is not bullying.

        • try2bhelpful on 27/03/2018 - 17:25
          +1

          @tshow: The issue comes down to if the people felt the guy was using his position to pressure them into the loan. If nothing else alerting the company to this practice will get them seriously looking at considering this sort of behaviour as breaking company ethics. Things don't have to be illegal to be unacceptable within a company. Plenty of footballers have "code of conduct" clauses in their contracts.

        • [Deactivated] on 27/03/2018 - 17:27

          @try2bhelpful:
          Fair enough. I don't think anyone alluded to pressuring though so I am just going off OPs voluntared information.

        • try2bhelpful on 27/03/2018 - 17:30
          +1

          @tshow: A superior is asking a number of people for money as a "loan", which he is not paying back. He then makes an announcement over the PA that is derogatory to one of these people when he won't give him the money. Not sure how this is not considered "pressuring" from a superior to a subordinate.

        • [Deactivated] on 27/03/2018 - 17:32
          +1

          @try2bhelpful:
          Ah. That was added in a later revision of his original post. That is indeed bullying.

        • try2bhelpful on 27/03/2018 - 17:36

          @tshow: No probs, I've obviously seen the revised post. Either way the whole thing stinks to high heaven. Obviously I don't know what the supervisors view is but borrowing significant amounts from your subordinates, and then not paying it back, is ethically wrong. If this sort of practice does not contravene company policy then it should be included ASAP. There is an imbalance there that is being exploited.

        • whooah1979 on 27/03/2018 - 17:57

          @try2bhelpful:

          He then makes an announcement over the PA

          op's story on this is a bit unclear.

          he is on holiday trip and before he begun his journey,

          yesterday he called everyone at least 10 times plus some SMSes, while we were working, to ask for money by transferring to him while he is abroad

          so he is overseas, but somehow manage to use the company's loud speaker.

          he just called a guy working with me

          The supervisor said to the guy on loud speaker

        • try2bhelpful on 27/03/2018 - 18:16

          @whooah1979: I would suggest that the loudspeaker timeframe has more to do with the way the OP has expressed himself rather than the supervisor being overseas. This probably occured prior to the trip.

          The SMS messages themselves are something the OP, and his coworkers, can take to HR to show how he is harassing them for more money. I'm sure that management would certainly see this as unacceptable.

        • vchar on 27/03/2018 - 19:51

          @try2bhelpful: sorry for the confusion, he has been abroad since last Friday and he called us from the country he is visiting yesterday and one of us picked up his call while we were together. So we turned on loud speaker so everyone could hear what the dodgy supervisor said.

        • try2bhelpful on 27/03/2018 - 20:11

          @vchar: ahh, that is a slightly different issue. I'm not sure that was a good idea from management's perspective. However, you do have witnesses to what he said and you have his SMS messages. I would document everyone that has occured, what he has said, and promised, and then take it all to management. Best of luck with the outcome for you. Hopefully this guys greed will be his downfall.

        • ozbjunkie on 28/03/2018 - 17:47
          +1

          @vchar:
          Record these calls, try to get him to admit be already borrowed X amount from you on X date.

        • mattyman on 29/03/2018 - 13:26

          @whooah1979: I think the loud speaker may have been the phone in handsfree mode? That's how I read it.

  • FeRGan on 27/03/2018 - 16:27

    You probably won't see the money again. Just don't ever lend money to anyone again, unless it is absolutely necessary. Just learn from this.

  • grog on 27/03/2018 - 16:35
    +9

    My dad told me that if anybody ever asks me for a "loan" i was to say that "funny about that i was just going to ask you for loan of $20 till payday"

    Works every time for me…

  • Randxyz123 on 27/03/2018 - 16:51
    +1

    So you gave him money or he took it?

    Call his boss and call fair work.

    Do both those things today.

  • Hardlyworkin on 27/03/2018 - 18:45
    +1

    From what you have said I take it this person is taking advantage of a certain group of people who due to their background/ religion / cultural beliefs etc are more likely to give money than your average Aussie.

    There is a place to go when someone needs money. That place is a bank. This is where your supervisor should be seeking money from. Judging by the royal commission they give it out to almost anyone. A true friend doesn't ask for money and not give it back.

    I recommend speaking to upper management / business owner and advise them of the situation. The group of you may need to seek legal advice. If he is just a supervisor and doesn't have responsibility for paying your wages then it seems like a private matter rather than a fair work matter. If I was the employer however I wouldn't keep the supervisor employed. It seems like you've made a private agreement to lend someone money and they haven't paid it back as agreed to, hence the legal advice.

    • whooah1979 on 27/03/2018 - 19:00
      -1

      average Aussie

      define an average aussie.

      • Hardlyworkin on 27/03/2018 - 19:23

        Fair point. I recognise there is no such thing. To clarify I mean I don't think the majority of Australians (considerably higher than 50%) would give money repeatedly to their supervisor.

        • whooah1979 on 27/03/2018 - 19:37
          +1

          ethnic minority australians tend to be a bit more open when it comes to lending money to family, friends, people they respect because of their social status or power. ethnic majorities are more tight.

        • Hardlyworkin on 27/03/2018 - 20:08

          @whooah1979: agreed

        • vchar on 27/03/2018 - 20:15
          +1

          @whooah1979: yes you are right, by our culture, we don't hesitate to help anyone and we have never experienced such an issue earlier.

      • centrelink on 29/03/2018 - 17:32

        A person who is racist

  • ProBoDoBo on 27/03/2018 - 20:21
    +2

    Just a quick question on this topic guys, if my housemate wants to borrow some money from me the right way to do that would be to transfer the money through his bank account and get a contract made. Can the contract be just on an A4 sheet stating this person is borrowing this much and agrees to return this on the following date. What else should be there?

    Thanks.

    • whooah1979 on 27/03/2018 - 22:39
      +1

      how much are you lending him?

      • ProBoDoBo on 27/03/2018 - 22:50

        About $500

        • whooah1979 on 27/03/2018 - 22:51
          -5

          $200-$300

          what? you need a contract for that?

        • ProBoDoBo on 27/03/2018 - 22:51
          +1

          @whooah1979: It is a big amount for me… It's like a month's rent.. (About $500-600)

        • whooah1979 on 27/03/2018 - 22:53
          -7

          @ProBoDoBo:

          don't lend if you're that worried about them not paying it back.

        • ProBoDoBo on 27/03/2018 - 22:55
          +1

          @whooah1979: so the A4 thing would not be a valid document was the question

        • gromit on 30/03/2018 - 14:47

          @ProBoDoBo: The A4 thing would most likely be valid assuming it is witnessed and signed. BUT it would probably cost you more to enforce it than the loan is worth. This sounds more like a situation where you absolutely should NOT be loaning him the money, tell him to go to a bank and get a loan or credit card. Loaning money to friends or housemates is a huge nono as it can both leave you out of pocket and out a friend.

        • ProBoDoBo on 30/03/2018 - 14:50

          @gromit: True, but that's the thing right sometimes there are urgent situations where you can't go to a bank for an amount like $500 and as we all live away from our families, we consider each other families. I just wanted to know the right way of doing it. Thanks.

        • gromit on 30/03/2018 - 15:41
          +1

          @ProBoDoBo: honestly no matter how close you are this is a bad idea unless you can afford to lose the money. Even with family never lend what you can't afford to lose. a bank over the phone or online or a payday lender can pretty much have the money to anyone within hours. with electronic transfers nowadays their is no such thing as living so far away from your family unless they somehow live in the middle of a jungle with no services whatsoever.

          While I am sure your situation is different a couple of years ago my sister was in exactly the same situation as you, she lent her roommate the money. The next day he was gone and upon talking to some of her friends it seems he did the rounds of getting small loans from everyone before disappearing. You just never know what is going to happen tomorrow.

          As a last resort if you really want to do this then don't rely on a piece of paper, make it something of value he owns that he hands over as security (that item has to be worth significantly more than $500).

    • Donaldhump on 27/03/2018 - 23:56
      +1

      Simple a4 page with 2 witnesses signatures and a date and repayment schedule would be enough. I would imagine

      But if they don’t give it back it could be a hassle to Pursue

      • whooah1979 on 28/03/2018 - 06:36

        But if they don’t give it back it could be a hassle to Pursue

        that's right. it doesn't sound like ProBoDoBo can afford to lose the money but still eager to lend it anyway. a contract won't protect them against the resources it takes to recover the money. the best option is to say no.

        http://www.localcourt.justice.nsw.gov.au/Pages/forms_fees/fe…

    • tasty-falafel on 28/03/2018 - 11:38

      As others have mentioned a contract isn't going to mean jack sh!t unless you have the funds to enforce collection.

      Assuming your friend doesn't pay, you would need to sue him in small claims court in which you would probably win and then a judgment would be awarded. However the court doesn't enforce these judgements so your only option after quite some time once you've exhausted asking for the money back is to have the Sheriffs enforce judgement which will cost you much more $$$ than the original loan amount.

      In summary writing a contract will be the right way to do it, but don't be deceived that this will make it easy for you to get your money back in the event that there is non-payment. If you can't afford to lose it, don't lend it.

    • trongy on 28/03/2018 - 12:51
      +1

      That's sufficient to be a contract.

      I would also suggest that someone independent witness the housemate sign the contract and the money being handed over and that the witness also signs and dates the paper as a witness. That way if the housemate disputes that the contract is valid, the witness can refute them.

      However, you should consider what action you will take if the housemate do not repay you. Are you willing and able to take them to court if they default? Will court action resolve the matter satisfactorily?

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