“I’ll give it to you next month, I promise”

We all know the scene. A friend is going through a rough patch, a brother needs a helping hand for a deposit, a colleague swears it’s a matter of a few weeks. You pull out the phone, you make an Interac e-transfer, and the deal is done with a handshake. Then the weeks become months. Reminders become annoying. And one day, you realize that you have lent several thousand dollars without any paperwork.

Lending to a loved one is a mix of money and affection, two things that rarely go well together when it comes to repayment. The good news: the Civil Code of Quebec recognizes these loans even without a formal contract. But you still need to know how to prove it and act within the deadline.

Loan or gift? The whole battle is there

When a loved one refuses to repay, his defense is almost always the same: “It wasn’t a loan, it was a gift.” The distinction is crucial, because the loan implies an obligation to repay (Article 2314) whereas the gift transfers the money without return.

Who has to prove what? The person claiming repayment must establish the existence of the loan – the remittance of the money and the commitment to repay. On the other hand, the one who invokes a gift must demonstrate the intention to give, because the gift cannot be presumed. One point works in the lender’s favour: the loan of money is presumed to be made for consideration (Article 2315), which does not fit well with the idea of a simple gift. In the end, the judge decides on the basis of the whole context and the balance of probabilities.

Proving a loan when there is no contract

Here’s the crux of the problem for most people. Above $1,500, the law does not allow a loan to be proved by simple testimony (section 2862). In other words, telling the judge “he borrowed $4,000 from me, my spouse was there” is not enough in itself. You need a written document – or one of the ways out that the law provides.

The first door is the beginning of proof : a text message where the other acknowledges the amount, an email, a bank transfer whose description mentions “loan”, a statement. As soon as such an element makes the loan plausible, the testimony becomes admissible again to complete the portrait. A message like “I’ll pay you back $200 this week, the rest in May” is often worth more than a lengthy argument.

The second is tailor-made for loans between relatives: the moral impossibility of obtaining a written document (article 2861). The courts admit that, in a family or friend context, requiring a signed contract would have been inappropriate or even insulting. The law recognizes this human reality.

The three-year countdown

We tend to let it drag, out of modesty or hope. This is a mistake. A debt is time-barred after three years (Article 2925), from the moment when repayment became due. After this period without having acted, the debtor can simply invoke the statute of limitations and no longer owe anything, legally.

Beware of a widespread and false reflex: sending a formal notice does not stop the counter. What interrupts the statute of limitations and makes it start anew for three years is a partial repayment or a clear acknowledgement of the debt by the borrower (Article 2898) – or the filing of a lawsuit. A $100 payment, a text that says “I know I still owe you $3,000,” and the clock starts again.

Can interest be claimed?

Yes, and many people don’t know it. The loan of money bears interest, in principle as soon as the funds are handed over (Articles 2315 and 2330). In the absence of an agreed rate, the guideline rate of 5% per year applies. In practice, before the courts and especially between relatives, interest is most often awarded from the date of the formal notice (Article 1617). You can also ask the judge for additional compensation (Article 1619). None of this is automatic: it must be expressly demanded.

Getting your money back: where to start

The process is a few steps, and it is similar to that of any debt collection. First, a written formal notice , ideally by registered mail, which demands reimbursement within a reasonable time. Often, this simple formal gesture is enough to unblock the situation: the tone changes when the letter is official.

If the debt does not exceed $15,000, the Small Claims Division of the Court of Québec offers an economic route. Particularity: the lawyer cannot represent you at the hearing – you plead yourself – but he can advise you beforehand, draft the formal notice and build your evidentiary file. For larger sums, the Civil Division of the Court of Québec takes over, with representation by a lawyer. Regardless of the amount, a legal look at the strength of your evidence before filing often makes all the difference.

Frequently asked questions about loans between relatives

How do I get money back from a friend?

First, send a written demand letter demanding reimbursement within a reasonable period of time. If you don’t get a response, file a claim with the Small Claims Division if the amount is $15,000 or less. Gather your evidence: transfers, text messages, emails, IOUs, witness names.

Can a text message serve as proof of loan?

Yes. A text message or email from the borrower may be equivalent to a written document, or at least a prima facie case (section 2865) that can be completed by testimony, even if it exceeds $1,500. A message where the other acknowledges the debt is particularly convincing.

How long does it take to claim a debt in Quebec?

Three years (section 2925), from the date the refund becomes due. A partial payment or a clear written acknowledgement by the borrower triggers a new three-year period (Article 2898). The formal notice does not interrupt the statute of limitations: only the filing of a lawsuit does.

Can you prove a loan without a written contract?

Yes, but it is more demanding above $1,500: simple testimony is not enough (section 2862), except in the case of prima facie evidence (text message, transfer, email) or the moral impossibility of having obtained a written document (section 2861), recognized between relatives. Below $1,500, only testimony is admitted.

Can you claim interest on a loan between relatives?

Yes. The loan of money is presumed to be made for consideration (Article 2315) and bears interest as soon as it is handed over (Article 2330). In the absence of an agreed rate, it is the legal rate of 5% per year. In practice, interest is often awarded from the date of the formal notice, and additional compensation may be requested from the judge.