I've been through exactly the same, and just wanted to warn you that it's not a quick process. It took me ages to get my money back, but I got it in the end.
Short story........
My brother's girlfriend of 3 years was crying when I went round as she owed £2500 on her credit card and could only afford to pay off £100 a month and had worked out that with the interest, it was going to take her about 6 years to clear. I offered to lend her the money on the understanding that she paid me back the £100 per month for 26 months (a little extra for me for interest I was losing from my savings). I wrote her a cheque for £2541.46 on 3rd June. Then my brother left her for another woman in the July. They had a drunken fight when he told her, and she came at him with a meat cleaver! (bit of a psycho we've since found out!) He defended himself by pushing her away and she fell. She called the police and had him done for assault. She was somehow covered in bruises!!! I know my brother and he would never hurt a fly. I tried to remain civil with her because of the money, and every time she saw me, she always told me my money was safe. In fact, she told me she was putting £100 a month in one of her kids high interest savings accounts!
In the December, I lost my purse and had to cancel my cards. I texted her asking if I could have the money she had saved to see us through until I got a new card. Her reply was "Sorry Amanda, my accounts are being investigated for fraud and I've had to use that money to buy the kids Xmas pressies. There's £65 quid if that's any good. Don't worry, you will get your money back". That text was her downfall as I kept it when the alarm bells rang.
In the May, I ran into her in the street with my hubbie and her new bloke and asked her for the money. She replied that she had told me on numerous occassions that I was to ask my brother for the money as she had used it to pay off his credit card!!! My brother has never owned a credit card!!! I was astounded that she was lying to my face. Her bloke had no idea what she was talking about, you could tell. She started to walk off and I shouted after her that if she didn't talk to me, I would have no other option but to take her to court. No response, so I went home and filed it.
That was May 3rd. She responded late like your 'friend' Dan, and I had also got my hopes up. Then it went to court, and she couldn't make it so it was adjoirned. Then again, then again. Then the date came through when I was on hols!
Eventually it went to court and she turned up with 2 character witnesses that the judge wouldn't even let in the room!!! She had took them to back up that she was good with money and wouldn't need a loan, but he said that unless they had daily access to her accounts, they wouldn't know!!! Then she started saying that she borrowed the money to pay off her credit card, but that the card was all money she had used for my brother so he owed me, not her. The judge gave her 28 days to get all the statements and proof of this. So court date again in 2 months, and guess what? She couldnt' make it. Finally it went to court again in February of this year and the judge ruled in my favour and she had 28 days to pay the full amount.
She said that she couldn't pay it so could she pay £10 per week. The judge said No as it would take too long to clear. Then we agreed that we would go back to the original arrangement of £100 per month.
2 months later and still nothing, so I applied to the bailiffs, she got a letter and paid the full amount. So in April of this year, I received just over £3100 (with costs and interest), but she had had the money off me June 2004!
So, good luck, and I hope you get your money back, but please don't expect it soon unless you are very lucky.