Hello, I am staying in Richmond Hill, Ontario for the past 2 yrs. I lent some amount to my neighbour thru online bank transfer for the university education of his son. The amount was lent in good faith on his word that he would return it in a short period. Now after 2 months he has not returned the money and has been ignoring our mails, SMS & messages on Facebook. When I and my wife approach him personally, he avoids making any commitment. How should I proceed in the matter to recover the amount.

I can understand that you already realize your mistake in having faith in his commitment and from the face of it it looks you might never see that amount again.

Depending upon the amount, you have 2 options:

1. If the amount is small and doesn't push you into borrowing for your own expenses - write it off and chalk it to lesson learned. The hard way.

2. If the amount is substantial, you can follow the legal option which is slightly expensive in terms of cost of time to get the verdict in your favor as well as enforcing the ruling.

Small cause courts handle disputes upto $25000. While the litigation cost is not so high in terms of court fees the amount can increase if you decide to retain a lawyer. If you self represent, please read up well before making your case and try to include and document his son as well.

Depending on your presentation, it may well be possible to get a verdict in your favor, trying to enforce the verdict might be a challenge.

Read it all here:
http://www.attorneygeneral.jus.gov.on.ca/english/courts/scc/#collect

Good luck. I am sorry, helping neighbor is no longer a good idea these days. In fact the current street smart logic suggests that when you lend someone money, be prepared to lose both - your money and the borrower.

Hiren

Prior to lending , did he give (or you asked) the time frame of returning the amount ?

1 or 2 months is too short a period for lending an amount ( and paying back for the 'lendee'). Even A credit card cash advance cycle is 30-40 days.

personal story
I lent $6000 to a friend in California ( childhood friend who contacted me in distress) for a period of 3 months. Its been 1.5 years , he never returned it, never calls. I do not need money so I do not ask. It will be good if he returns without me asking. I lost a friend in the bargain. Wife complains about it all the time. I am quietly ignoring the whole situation.
Mostly it ends badly when you lend big amount to a near one.

Thanks for the replies.

As I made an Online Transfer, I have the proof of transferring the amount to his bank account. I also sent him mails and messages, SMS, which I have saved.

Can I file a police complaint against him on charges of cheating etc...

As Hirein said, small court claims is one option. It used to cost $ 100 for registering and if you self represent yourself, it will only cost that much.
But the bad part is that, even if you have a judgement in your favour, it does not compel him to return it and in other words not enforceable. However, you may be able to try to get part of his salary on a monthly basis, if you do additional work.

Police will never entertain your complaint unless the money is above $ 5000.

Murali

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I am a Gents and not a Ladies.

Leaves a very bad taste in oneself so much so that one may not feel like lending again even to genuine in need people .

Happened with me thrice with the same outcome .... When people need money , they make such a pitiable face and when it comes to return they try and avoid you and even if you confront them , they behave as if they are the owners of that money now ...

Now I seldom lend ... Out of 5 friends , I would lend only to 2 like minded ones ... Have learnt my lesson.

In the above case .. tell him clearly a date by which if not returned , you would initiate legal action since you have the proof of transfer ..

If he does not return by that date , call the police and ask for their help ..If they cannot , they will direct you to take a civil recourse in which case , visit a lawyer and send a notice .... (cost $40 or so )....

After that you can decide whether you wish to go ahead .

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Fido.

Sorry to hear that. I would also suggest you get an advise from a Lawyer.

I have become insensitive to the money requests from the relatives, friends, and acquaintances., unless it's my own immediate family - siblings and parents.

Call me what you may. Lending money is the easier way to lose your relatives.