“I lent money to a friend. We did not sign an agreement because we trusted each other. Now they will not repay it and say I cannot prove anything.” Similar situations arise between friends, partners and family members.
The absence of a signed agreement does not automatically mean you cannot recover your money. The key is to show that the money was provided as a loan, with an obligation to repay it.
Is an oral loan agreement valid?
Generally, yes. The Polish Civil Code requires documentary form for a loan whose value exceeds PLN 1,000. Failure to observe that form does not invalidate the agreement, but may make it harder to prove that it was made and on what terms.
Documentary form must be distinguished from written form. A paper document with handwritten signatures is not always necessary. Electronic messages, including emails and text messages, may satisfy documentary form if they record the parties' declarations and allow their authors to be identified. The content of the entire exchange matters, rather than merely the fact that a conversation took place.
Is a bank transfer enough to prove a loan?
A transfer confirmation can be important evidence, particularly if its reference says “loan”. However, the confirmation alone may not establish that the recipient agreed to repay the money.
The recipient may argue that it was a gift, repayment of an earlier debt or a settlement of shared expenses. The agreed obligation to repay must therefore also be established.
The transfer reference “loan” may support the lender's position, but does not guarantee success. Messages preceding the transfer, confirmation of receipt and later repayment discussions may be particularly helpful. The court assesses the evidence as a whole.
What evidence should be gathered?
Before pursuing payment, prepare:
- the transfer confirmation or a receipt for cash;
- text messages, emails and messaging-app conversations about the loan;
- messages specifying the amount, deadline and method of repayment;
- confirmations of partial repayments;
- the borrower's requests for an extension or instalments;
- demands for payment and proof of delivery;
- details of people present when terms were agreed or money was handed over.
Keep the full correspondence, including dates and information identifying the participants. Do not rely only on isolated screenshots taken out of context. Also keep the original messages on the device and make a backup.
For cash, an ATM withdrawal alone does not establish that the money was subsequently given to a particular person.
Can witnesses be called?
Yes, but where the required documentary form was not observed, there may be restrictions on witness testimony and examination of the parties to prove that the transaction took place.
The law provides exceptions. Such evidence may be admissible, for example, if both parties consent or if a document makes the agreement's conclusion plausible, such as a transfer confirmation, email correspondence, a receipt or a message requesting repayment by instalments. Separate rules apply between businesses and to a consumer's request in a dispute with a business.
The absence of a signed agreement therefore does not mean witnesses are always excluded. The specific situation and available documentation must be assessed.
We did not agree a repayment date. What now?
If no repayment date was specified, Article 723 of the Polish Civil Code applies. The borrower must repay the money within six weeks after the lender gives notice calling in the loan.
The notice should clearly identify the loan and be communicated in a way that allows its receipt to be proved. Keep its text and proof of delivery.
Do not assume that an arbitrarily chosen deadline in a demand, such as three days, replaces the statutory six-week period.
How should a demand for payment be prepared?
If repayment is already due, the demand should specify:
- the lender's and borrower's details;
- the date and amount of the loan;
- the agreed repayment date;
- the outstanding balance;
- the bank account and deadline for voluntary payment;
- notice that the matter may be taken to court.
If no repayment date was previously agreed, the letter should incorporate notice calling in the loan and the applicable repayment period.
The demand should be factual. Publicly shaming the debtor, abusive messages and threats are no substitute for properly pursuing payment.
Can interest be claimed?
Interest for the use of borrowed money must be distinguished from interest for late payment.
A loan between private individuals may be interest-free. If the borrower fails to repay on time, however, statutory late-payment interest may generally be claimed even if no interest on the loan itself was agreed.
The date from which interest accrues must be established by reference to the repayment date and any notice calling in the loan.
Can a loan become time-barred?
Yes. A claim to repayment of a private loan is generally subject to a six-year limitation period. Claims connected with business activity and claims for interest are generally subject to a three-year period. Rules for calculating the end of the period must also be considered, together with transitional provisions for older loans.
The absence of an agreed repayment date does not allow the start of limitation to be deferred indefinitely. The earliest time at which the creditor could have taken the step making the claim due may be relevant.
Simply sending a demand for payment does not interrupt limitation. Repeated reminders should therefore not be assumed to protect the claim against the passage of time.
What if the borrower still does not pay?
A written settlement confirming the debt and repayment terms may be considered. If agreement is impossible, the next step may be a court claim for payment.
Before going to court, organise the evidence, establish when payment became due, check limitation and calculate the amount claimed correctly.
The most important point is to prove not only that money was transferred, but also that it was to be repaid. Correspondence and payment records can therefore be crucial, even if the parties never signed a traditional agreement.
Downloadable document templates
The Word files below are in Polish and can be edited and completed with your details. Choose the document suited to your situation and remove the instructions in brackets after filling in the fields.
- Download a demand for payment — Word DOCX (in Polish) — where the agreed loan repayment date has passed;
- Download a notice calling in a loan and demanding repayment — Word DOCX (in Polish) — where the parties did not specify a repayment date.
Legal basis: Articles 6, 73–74, 77²–77³, 118–120, 123, 359, 481, 720 and 723 of the Polish Civil Code.
Source: Polish Civil Code — consolidated text.
Barbara Kardynia, Advocate
Barbara Kardynia Law Office
Telephone: +48 795 674 344
Email: b_kardynia@icloud.com
Website: adwokatkardynia.pl