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Discussion » Questions » Finance » If you loaned money to someone and they showed signs of not paying it back, would you consider doing the following

If you loaned money to someone and they showed signs of not paying it back, would you consider doing the following

A elderly friend of mine became friends with someone that worked as a massage therapist (I changed the type of service), at a local business.    She has always had a big heart and likes to help people out when she can.  She ended up loaning the masseuse a few hundred dollars and they agreed she would provide massages at her home as a way of paying her back, rather than cash. Things were fine at first and they worked off a small portion of the loan then they started making up excuses why they couldn't show up. Some of her other friends were giving her advice on what she could do.  She was going to chalk it up to a learning experience but in talking to her recently she told me she contacted the person's employer and explained to them she was no longer going to do business with them, they asked why and she told them  They said it was highly improper of the employee to do this and a violation of the terms of their employment.  They also said this could have been a liability for both the employer and the employee if something had happened.  Apparently the employee had already quit her job there so she avoided getting fired, but after hearing all the details of what happened to my friend, the company actually said they were going to make up the difference that was owed so she wasn't out any money and they apologized for the employee.  I was shocked that a large corporation would do something like that. Would you have done what she did as far as calling the employer or chalk it up to experience?  

Posted - August 3, 2016

Responses


  • i went through a similar situation with an employee that borrowed money from me and then quit her job instead of being faced with paying me back. there was no one to call, as she seemed to disappear altogether. i wasn't even pressuring her to pay me back anytime soon and originally suggested she accept the money as a one-time gift. it was hard to understand why she'd ditch her job over it.

    since then, i only help (give) money to someone in need if i can afford to lose the money. i won't enter a deal where i'm owed money, if at all possible. debt collection is a difficult job and not worth it at all without earning interest. i am not a lending corporation.

    i think your friend got lucky and was better off collecting the money debt rather than services anyway. the company could have offered the equivalent in services. most companies would not have paid someone else's debt in cash because they are not liable, even if they would have fired their employee for breaking policies. i'm guessing it was a very rare occurrence, and i guess their priority is to prevent the loss of their customer-base because it would have cost them more to lose the business. it's still a lesson i hope your friend  learned about lending money one can not afford to lose or would feel resentful about not being paid back. it's just not a good idea, any way you slice it.

      August 3, 2016 11:48 AM MDT
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  • 19938
    I try to be neither a borrower or a lender.
      August 3, 2016 1:32 PM MDT
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  • 44518

    Too much to read. If it was a family member I wouldn't care.

      August 3, 2016 1:42 PM MDT
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  • 17554

    I bet they got a signed release before they paid off the loan. 

    No  I'm not surprised. 

      August 3, 2016 4:08 PM MDT
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  • 2465

    Hi little queen, it's amazing to think someone would quit their job over some borrowed money.   It takes a special person with a big heart to loan someone money because as you know, it doesn't always turn out well. Loaning money ONLY when you can afford to lose it is the best way to look at it.   It certainly is a difficult job collecting money from people and often times the payback is a lost friendship and hard feelings. Yes, she did get lucky this time and I hope she's learned her lesson.  But the company did offer the equivalent in services AND products, because they issued her a gift card. You're absolutely right, most companies would not have paid off an employee's debt.  It certainly wasn't their responsibility and that’s what makes this unbelievable. Someone at the corporate office actually called her and that's when she was told they wanted to step in and help.  They said when they initially heard about this it touched them and they knew they wanted to do something to make it right.  They told her while it probably wasn't a good idea to loan the money, they understood her reasons..  It doesn't appear to be a case of them "needing" this one customer, because by that time, they had already removed her from their mailing list, per her request, and she had already told them she was severing business with them.  They could have just walked away at that point.  Even if that was the case, they could have merely offered a token gift of one free massage and called it even.  Damn, I can't even get most companies to email me back when I have a problem, let alone have one go to this extent.  It showed ME, at least, that there really IS a heart in some large corporations, even if most of us never see it.

      August 4, 2016 11:09 PM MDT
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  • 2465

    SS, I've been the lender more often than the borrower, and only from financial institutions, not from friends or acquaintances.  Borrowing from the latter usually has unpleasant outcomes. 

      August 4, 2016 11:20 PM MDT
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  • 2465

    Thriftymaid, She didn't say anything about having to sign something.  I'll have to ask her about that.

    What were you not surprised about?  

      August 4, 2016 11:20 PM MDT
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  • ahhh... it was a gift card. i must have somehow overlooked that detail. but that's still super great, since it benefits both your friend and the company. now they can both forget about the woman who caused the situation, since she's gone her own way.

    the story has a happy ending. =)

      August 4, 2016 11:58 PM MDT
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  • 46117

    1.  A masseuse is a hooker that knows how to massage.  That is not the same thing as a massage therapist.  Different strokes, if you catch my meaning.

    2.  A massage therapist with any type of reputation at all, would never jeapordize her license in any shoddy manner that could cost her what amounts to her career.  

    I mean a professional who at least went to school and wants to stay respected in the field.   Clients talk to each other and word gets around.  If you screw anyone and lie to them?  That is so unprofessional.   Soon the better places are going to not want you if you have that as a reference.

    You get what you pay for and if you agree to a trade in massage?  You'd better honor your word and put it in writing, and place it in  that file that any professional massage therapist needs to  have on each client.  And hand the copy to your client.   You cannot build up a business that depends on customers returning if you are not diligent making them respect you and like your work.

    So, maybe you should have chosen a different profession to use as an example.  But it COULD happen. 

    Now what were you saying?

    Oh the company backed this?   That was some amazing company.   They were probably embarrassed to admit they hired such a person of such ill repute.  So, they wanted to make sure the reputation of their store was not tarnished which is VERY unusual for a large corporation.

    THE END 

      August 5, 2016 12:16 AM MDT
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  • 17554

    I'm not surprised that the corporation paid the difference.  A court might find the company vicariously liable for their employee's behavior and it's a small price to pay to be sure there is no litigation down the road.  That is sadly the world we live in.  I fell in a grocery store about six months ago.  Two managers saw me fall.  It was raining and I had on flip flops, the cheap ones than sponge up water (and I no longer own).  I was walking fast and when I turned my foot slid like I was on ice.  It shook me up but I knew I was fine.  They asked me to fill out a form which I did as I understand the whys of it.  About a week later someone from the headquarters of the grocery store called and wanted to give me $500.  I told them I was fine and had incurred no expense or harm from the fall.  They called me again with the same offer about a week later.  I asked if they were going to keep this up until I signed a release.  The woman got tickled and said maybe.  

    We all pay for this insane way of being.

      August 5, 2016 9:49 AM MDT
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  • 19938

    I've borrowed from banks for my mortgage and car loans.  I would never borrow from family or friends.  I, too, have loaned money to family and friends, but loaned an amount that I would not miss if not repaid.  In all instances, I did get my money back. 

      August 5, 2016 5:45 PM MDT
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  • 2465

    Thriftymaid, many people would have jumped at their offer of $500,  But your situation was a bit different.  In your case, you had the store's own employees as witnesses and you filled out an incident report.  With my friend, they relied on her word alone.  They didn't ask if she had proof to substantiate her claim.  They had nothing in their possession but an email from my friend claiming this had happened. You never know what might happen if you go to court, but I'd have a hard time understanding how an employer, who had no knowledge of what was happening, could be held legally liable if one of their employees worked off a debt on their own time .  If they HAD known, she would have been fired on the spot. If they had done this for the reasons you stated, don't you think they would have had her sign a Hold Harmless Agreement?  She just told me they didn't ask her to sign any document.

      August 6, 2016 1:14 AM MDT
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  • 2465

    sharon, it appears as though you got lost* and strayed too far from the question which was, "Would you have done what she did as far as calling the employer or chalk it up to experience?"  

    *A GPS is available upon request.

     

     

      August 9, 2016 9:04 PM MDT
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