Sue for Money Owed Without a Contract

You lent someone money. They promised to pay you back. They haven't. And you never got anything in writing. Many people assume they're stuck, thinking "no contract, no claim." This is completely wrong.

Under UK law, you can absolutely sue for money owed without a written contract. Verbal agreements to repay money are legally binding. Bank transfers prove you gave money. Text messages and WhatsApp conversations prove they agreed to repay. Witnesses heard the agreement. All of this is evidence courts accept every day.

How Debt Claims Work Without Written Contracts

A debt claim is simpler than other contract claims because you only need to prove three things:

1. You Gave Them Money

This is usually the easiest element. Bank transfers, cash withdrawal records, cheques, or payment app transactions all prove you transferred money to them. Even cash-in-hand can be proven with ATM withdrawal records showing you had the cash, combined with witness testimony.

2. It Was a Loan, Not a Gift

This is where lack of written contract becomes relevant. You must prove the money was meant to be repaid, not given as a gift. Evidence that proves loan rather than gift includes:

• Text messages or emails mentioning repayment
• Messages where they acknowledge owing you money
• Partial repayments they've made
• Witness testimony about loan discussions
• The relationship context (business associate vs family member)
• The amount (large sums suggest loan not gift)

3. They Haven't Paid You Back

Straightforward - your bank statements show no repayment, or only partial repayment, or repayments that stopped.

Types of Evidence That Prove Debt

Without a written loan agreement, you need alternative evidence. Courts accept these regularly:

Bank Transfers and Payment Records

Your best evidence. Bank statements showing transfers to the debtor prove you gave them money. Include:

• Bank statement showing transfer with date and amount
• Transaction reference if it mentions loan or repayment
• Multiple transfers if you lent money in installments
• Payment app records (PayPal, Venmo, bank apps)

Text Messages and WhatsApp

Digital communications are powerful evidence. Relevant messages include:

• "Can you lend me £X?" followed by your agreement
• "I'll pay you back by [date]"
• "Sorry I haven't repaid yet, will do soon"
• "I owe you £X, right?"
• Discussions about repayment terms or schedules
• Their acknowledgment of the debt at any point

Email Correspondence

Similar to texts but sometimes more formal. Emails discussing the loan, repayment terms, or acknowledging debt are strong evidence.

Partial Repayments

If they've made any repayments, this is excellent evidence:

• Proves it was a loan (gifts aren't repaid)
• Proves they acknowledge owing money
• Shows the amount owed (if they paid "half" you know total)
• Bank records showing their payments to you

Witness Testimony

Anyone who heard discussions about the loan can testify:

• Someone present when you agreed to lend money
• People who heard debtor acknowledge owing you
• Witnesses to discussions about repayment
• Someone who saw the cash exchange hands

Debtor's Own Admissions

The most powerful evidence is when they admit owing money:

• Written acknowledgment of debt (even informal)
• Voicemail or recorded conversation mentioning debt
• Social media posts or comments acknowledging debt
• Their response to your letter before action admitting some amount owed

Context and Circumstances

The situation itself provides evidence:

• Business transactions - presumed to require repayment
• Large amounts - unlikely to be gifts
• Debtor's financial need at the time
• Your financial situation (could you afford to gift that much?)

Common Scenarios: What Counts as Proof

Different situations require different types of evidence. Here's what works:

Personal Loan Between Friends

Situation: You lent a friend £3,000 via bank transfer. Nothing in writing. They've gone quiet.

Evidence needed:

• Bank statement showing £3,000 transfer
• Text messages around that time discussing the loan
• Any messages since then where they acknowledge owing money
• Witness who heard you discuss the loan

Strength: Strong case if you have texts mentioning loan or repayment. Weaker without any written mention.

Money for Business Deal

Situation: You gave someone £10,000 to invest in a business venture. They were supposed to return it with profit. No written agreement.

Evidence needed:

• Bank transfer records
• Emails or messages discussing the investment
• Business plan or documents mentioning your investment
• Anything showing this was business, not personal

Strength: Very strong. Business transactions presumed to require repayment. Courts skeptical of "gift" defense in commercial context.

Family Loan

Situation: You gave your sibling £5,000 for house deposit. They said they'd pay back when they could. No paperwork.

Evidence needed:

• Bank transfer
• Text or email mentioning repayment
• Family member who heard you say it was a loan
• Context (did they ask to "borrow" or did you offer as gift?)

Strength: Moderate. Family transactions scrutinized more heavily. Strong evidence of "loan" language essential. If they've made any repayments, case becomes much stronger.

Paid for Services Not Delivered

Situation: You paid someone £2,000 for work they never did. No formal contract.

Evidence needed:

• Payment record
• Messages discussing what work would be done
• Evidence work wasn't completed
• Their admission they didn't do the work

Strength: Very strong. This is unjust enrichment - they kept your money without providing agreed service. Easy to prove even without formal contract.

Split Bill or Shared Expense

Situation: You paid £1,500 for holiday rental, friend was supposed to pay their half. They haven't.

Evidence needed:

• Receipt showing you paid full amount
• Messages discussing splitting cost
• Booking confirmation showing both names
• Their agreement to pay half

Strength: Strong if you have written agreement to split. Their participation in the holiday implies agreement to pay share.

What You Can Claim

In debt claims without written contract, you can recover:

Principal Amount

The money you lent or are owed. This is straightforward - the amount you transferred, paid, or lent.

Interest

Even without written contract specifying interest rate, you can claim:

• Contractual interest - If you verbally agreed on interest rate and can prove it
• Statutory interest - Once you file court claim, you can claim 8% annual interest under Late Payment of Commercial Debts Act (for business debts) or County Courts Act (for personal debts)

Court Fees

If you win, court orders debtor to pay your court fees back to you on top of the debt.

What You Usually Can't Claim

• Emotional distress - Pure debt claims don't usually include distress damages
• Punitive damages - Courts award what you're owed, not extra to punish
• Excessive interest - Can't claim unreasonable interest rates without written agreement

Small Claims Court Process

Suing for money owed follows the standard small claims procedure:

Step 1: Letter Before Action

Before court, send formal demand letter:

• State the amount owed
• Explain when and how you lent/paid the money
• Reference evidence (bank transfer date, message exchanges)
• Give 14 days to pay
• Warn of court action if no payment

Step 2: File Money Claim Online

Use HM Courts & Tribunals Money Claim Online service:

• Enter debtor's details
• Specify amount owed
• Write particulars of claim explaining debt
• Pay court fee (£25-£455 depending on amount)

Step 3: Debtor's Response

Three possible responses:

• Admit - You win automatically, court orders payment
• Ignore - You get default judgment in your favor
• Defend - Case proceeds to hearing

Step 4: Prepare Evidence Bundle

If they defend, organize evidence:

• Bank statements showing transfer
• Screenshots of all text/email exchanges
• Witness statements
• Timeline of events
• Any documents referencing the debt

Step 5: Court Hearing

Small claims hearings are informal. Explain:

• How much you lent/paid
• Evidence proving the transfer
• Evidence proving it was a loan not gift
• That they haven't repaid
• Show judge all your evidence

Step 6: Judgment and Enforcement

If you win, court orders debtor to pay. If they don't pay voluntarily, use enforcement:

• Bailiffs to seize assets
• Attachment of earnings (take from salary)
• Charging order on property
• Third party debt order (freeze their bank account)

Debtor's Common Defenses

When sued for debt without written contract, debtors raise predictable defenses. Here's how to counter:

"It Was a Gift, Not a Loan"

Most common defense. They claim you gave the money as a gift with no expectation of repayment.

Counter with:

• Messages using words "loan," "borrow," "pay back," "owe"
• Partial repayments they made (gifts aren't repaid)
• Witness testimony about loan discussions
• The amount (£5,000 unlikely to be casual gift)
• Your financial situation (could you afford such a gift?)
• The occasion (no birthday, holiday, or celebration suggesting gift)

"I Already Paid You Back in Cash"

Debtor claims they repaid in cash, hence no bank record.

Counter with:

• No receipt they can produce
• Their bank statements showing large cash withdrawals matching alleged repayment
• Why would they repay cash when original loan was bank transfer?
• Messages after alleged cash repayment still discussing the debt
• Burden is on them to prove repayment - lack of evidence defeats defense

"You Never Gave Me That Money"

Complete denial of the debt.

Counter with:

• Bank transfer record showing payment to their account
• Their messages acknowledging receipt
• Their own bank statement (if you can get it via disclosure)
• Witness who saw transaction

"That Was for Something Else"

Admits receiving money but claims it was payment for goods/services they provided you.

Counter with:

• Evidence of what the money was actually for
• Timeline showing you received no goods or services
• Messages discussing the loan purpose
• Lack of any evidence of goods/services provided

"You Can't Prove the Terms"

Admits borrowing but claims unclear terms about repayment amount or timing.

Counter with:

• The amount you lent is the amount owed - simple
• If no repayment date agreed, reasonable time applies
• Months or years later is beyond reasonable time
• Your demand for repayment triggered their obligation to pay within reasonable time (usually 14-28 days after demand)

Proving It Was a Loan, Not a Gift

This is often the battleground in debt cases without written contract. Courts consider:

The Language Used

Look at words in messages, emails, conversations:

• Loan language: "lend," "borrow," "loan," "owe," "repay," "pay back"
• Gift language: "give," "present," "help you out," "don't worry about it"

Even one message saying "can I borrow" or "I'll pay you back" is strong evidence against gift defense.

The Relationship

Courts consider who the parties are:

• Business associates: Presumed loan
• Strangers/acquaintances: Presumed loan
• Close friends: Could be either - need evidence
• Family: Scrutinized heavily - could be gift
• Romantic partners: Complex - courts look at specific circumstances

The Amount

Size of transaction suggests intent:

• £50 - Could be gift or loan
• £500 - More likely loan
• £5,000+ - Unlikely to be gift without special occasion
• £20,000+ - Courts skeptical of gift defense

The Circumstances

• Did they ask to borrow or did you offer?
• Was there a special occasion (birthday, wedding) suggesting gift?
• Did they express gratitude suggesting gift, or promise repayment?
• How soon did they expect to repay?
• Was this during their financial crisis?

Subsequent Conduct

Behavior after receiving money:

• Made partial repayments = clearly a loan
• Acknowledged owing money = loan
• Avoided you when repayment due = suggests loan
• Discussed repayment plans = loan
• Never mentioned it again = could support gift

Interest Calculations

You can claim interest even without written agreement:

Statutory Interest Rates

• Commercial debts: 8% plus Bank of England base rate
• Personal debts in court: 8% per year

When Interest Starts

• From date debt was due (if you agreed repayment date)
• From date of demand letter (if no date agreed)
• From date of court claim (definitely can claim from this point)

Calculating Interest

Formula: (Amount owed x Interest rate x Number of days) ÷ 365

Example: £3,000 debt, 8% interest, 200 days late

(£3,000 x 0.08 x 200) ÷ 365 = £131.51 interest

Time Limits

Act quickly - limitation periods apply:

6 Year Limitation

You have 6 years from when the debt became due to sue. Clock starts:

• On agreed repayment date, or
• On date you demanded repayment (if no date agreed), or
• On date of last payment (if they made partial repayments)

Acknowledgment Restarts Clock

If debtor acknowledges the debt in writing within 6 years, limitation period restarts from that acknowledgment. This is why getting them to admit debt in writing (text, email) is valuable - it extends your claim window.

Don't Delay

Despite 6 year limit, act quickly:

• Evidence disappears (messages deleted, witnesses forget)
• Debtor may become untraceable
• Debtor may go bankrupt
• Your memory of events fades

Court Costs

Money claim online fees:

• £300 or less: £35
• £300.01 - £500: £50
• £500.01 - £1,000: £70
• £1,000.01 - £1,500: £80
• £1,500.01 - £3,000: £115
• £3,000.01 - £5,000: £205
• £5,000.01 - £10,000: £455

If you win, debtor pays these fees back to you plus your claim amount plus interest.

When You Probably Can't Win

Be realistic about cases where lack of written contract is fatal:

Pure Cash Transaction With Nothing Else

You gave cash, no bank record, no messages, no witnesses, they deny it ever happened. This is "your word against theirs" and courts struggle without corroboration.

Clear Gift Situations

• You gave money on their birthday/wedding
• You explicitly said "don't worry about paying back"
• Messages show you offered as gift
• Amount is small and relationship suggests generosity

Very Old Debts With No Recent Acknowledgment

Lent money 7+ years ago, no contact since, no written trail. Likely outside limitation period and evidence too weak.

Gambling or Illegal Debts

Courts won't enforce:

• Gambling debts between individuals
• Money lent to buy illegal goods
• Debts from illegal activities

Maximizing Your Chances

Even without written contract, strengthen your case:

Get Written Acknowledgment Now

Before suing, try to get debtor to acknowledge debt in writing:

• Send message: "Just confirming you owe me £X from [date], when can you repay?"
• Their response acknowledging any amount is valuable evidence
• Even "I know I owe you, I'll pay soon" helps your case
• Save and screenshot immediately

Document Everything From Now

• Keep record of every contact attempt
• Screenshot all messages immediately
• Save emails as PDFs
• Note down dates of phone conversations
• If they make promises, confirm in writing

Gather Witnesses

• Contact anyone who might have heard relevant conversations
• Ask them to write down what they remember
• Get their contact details for potential court testimony
• Written witness statements, signed and dated, help even if they don't attend court

Organize Financial Records

• Get bank statements showing your transfer
• Find any partial repayment records
• Collect evidence of your financial position at time of loan
• Show you tracked the debt (if you made notes)

Why JustClaim Helps

Debt claims without written contract require careful evidence presentation:

• Evidence assessment - Evaluates whether your bank records, messages, and witnesses are sufficient to prove the debt
• Loan vs gift analysis - Helps you build argument that money was loan not gift based on circumstances
• Legal documents - Generates letter before action and money claim particulars that frame your case compellingly
• Interest calculation - Works out correct statutory interest to claim
• Defense responses - Prepares counter-arguments to common debtor defenses
• Evidence bundle - Organizes your proof professionally for court

Take Action Today

Someone owes you money. They're not paying. The lack of written contract doesn't mean you're powerless - it just means you need to present your evidence properly.

Bank transfers, text messages, partial repayments, and witness testimony are all evidence courts accept daily in debt claims. Judges understand that many loans between individuals aren't formally documented. What matters is proving money changed hands and wasn't intended as a gift.

Don't let someone keep your money just because you trusted them enough not to demand written paperwork. Start your money claim now and recover what you're owed.