With only a month of the financial year to run and the target already reached there is no sign of panic at the Treasury

With only a month of the financial year to run and the target already reached, there is no sign of panic at the Treasury. This means that a record year for the National Savings movement is ending on a low note. In the 11 months since last April the net amount invested in National Savings has risen by pounds 4.7bn, more than 50 per cent above the original target set by the Chancellor, Kenneth Clarke, in November 1995. It exceeds even the revised target of pounds 4.5bn set last November.
But withdrawals exceeded new savings last month by pounds 170m, making February the third worst month this decade, and it needed the addition of pounds 238m- worth of interest to make a positive contribution to the amount invested.

The move aims to allow savers who have reached this limit to keep their money with National Savings. Yet, as for boosting interest rates paid to savers – the critical issue that might permit National Savings to continue winning a large slice of funds – the organisation has passed on the opportunity. Another option is to get a cheque post-dated to the agreed repayment date. Then, if the cheque should bounce, the lender has evidence of borrower liability.. Or the debtor should be asked for a receipt confirming the amount owing and the agreed repayment date. If the defendant refuses to pay, it may be necessary to take enforcement proceedings.

These can take a variety of forms, including obtaining an order for bailiffs to seize property equal to the value of the debt, or for pay to be deducted by instalments from the defendant’s salary.Warning against handshake loans, one lawyer said: “Often the greatest problem with debt recovery, especially where friends or families are involved, is satisfying a court that anything is due in the first place.” If a loan is made by cheque a copy should be retained. Once both sides have put their case, the court will arrange a hearing date.Richard was fortunate. Once he issued proceedings, Tom arranged, through his parents, for the debt to be settled without the need for a hearing. Once court action seems the only option the litigant should write to the defendant setting out the nature of the complaint and the proposed solution. Also, proceedings should only be started after every effort has been made to settle matters amicably.

Richard knew that Tom lived with his parents and that if necessary they would settle the debt. In most cases, the services of a solicitor are not required and costs can be minimised.Before considering legal action, a potential litigant should make sure that the defendant has any money worth pursuing. In the small claims court, disputes involving claims up to pounds 3,000 can be resolved in a relatively informal atmosphere. He decided to enlist the support of the small claims court to recover his money. When the money was handed over, Tom promised to repay it the following week.Six weeks later, Richard had had plenty of excuses but no money.