Lessons in Finance, the Brian Gorell blog
April 11, 2008 by dragon
If you're trapped in outer space, then you've missed out on the latest lifestyle "scandal" to hit the Metro in the past month. In a past article here in Finance Manila, it was mentioned that blogger Brian Gorrell as of that writing, had no proof to back up his accusations that DJ Montano scammed him out of $70,000.
Tonight, DJ Montano shows up with his parents in a news segment of ABS-CBN, interviewed by Korina Sanchez, denying the whole thing.
Well for a few weeks back, Brian blogged out scanned Western Union documents showing he sent money to the Philippines and a name was show on the receipt. While it is up to the courts to ascertain these documents, what is missing is any form of writing on what the money is for.
Any form of MOA Memorandum of Agreement, MOU Memorandum of Understanding? While these may or may not hold up in court because a MOA or MOU is not yet a real final contract, it is better than nothing.
So while we may not know either of the parties, the accuser and the accused, I doubt that even their closest friends can legally vouch "just based on experience with the other guy" on who is telling the truth between them. No "he's telling the truth, he's my son". No, "he can't possibly lie, he's my friend". Etc. etc.
Long story short, the burden of proof is always on the accuser's side. The accuser should put up ample proof to back up his accusations.
So lesson learned for everybody, there is no such thing as family, or best friend, or close friend when it comes to parting with your money. Always have some form of writing, if not a contract. You don't want to have to learn the hard way.
[...] Lessons in Finance, the Brian Gorell blog [...]
Unless you want to be in the finance business, avoid lending money to anyone, especially people you know. If you can afford it, just give money to those who need it. No strings, no IOUs, no need to collect. The person you give it to will also likely stop trying to borrow from you out of sheer embarrasment.
Unlike if you lend to someone in need, you just recruited a borrower for life. Some people just can’t get out of the crap they’re in even if they had the means to fix it already. The attention they crave from people who commiserate (and lend them more money) is what matters.
They will deny this of course.
MTM nailed it there.
i have a friend now who is a chronic borrower, only to find him spending the money on things more luxurious than i would care to spend for.
the best thing, then, is to settle all debts payable, and get away as far from that person as possible, or just say that you are also gipit when he asks for another utang.
just like to point out that in my experience, in three out of five instances, the borrowers are the ones who are “yabang”. sila na nga ang may atraso, sila pa ang galit pag sinisingil mo ang pera mo. they even had the gall to tell you not to collect because they are still resting, sleeping, etc.
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while the ten principles listed provide a comprehensive check list for lending to small
entrepeneurs, list is suitable for urban lending. List stops short at providing insight to lending to
rural low income clients where thre is a huge gap in satisfying demand, operational costs for
lenders limits their capacity to follow up/monitor clients/end users and limited collateral to
access credit. I will appreciate feedback on succesful approaches for lending small/low income
farmers.
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