Trying to help my Dad

Melmoneysaver

I originally posted this on another section but was kindly advised that you guys over here might have some advice for me

Hi,

I have been helping my dad try to reclaim around £4,000 in bank charges and have had to help him fill out several expenditure forms as he is very clearly in a lot of debt and suffering financial hardship, he has recently told me that he was contacted by a company who wanted £2.500 to rearrange his debts so it would be affordable to him, I told him not to give them any more money as he has already given them £250 as a deposit??? i was horrified as even though I hadn't ever needed to find out much about this, I couldn't believe that this company wanted this much from an already struggling person to help him.

I have told him to go to the CAB for help which he is going to do but does anyone know anything about these companies that rearrange debt with your creditors so you can live.

He has a lot of mortgage arrears and credit card debts and as a daughter im worried that he may lose his house, after looking at his expenditure and knowing that he is currently self employed but his line of work has been almost killed by rising fuel prices and congestion fees, his work has been cut in half and I don't know how to help him

On top of this he started asking me for money about a year ago and as this is my dad, i would do anything for him, the thought of seeing him, my mom and my brother out of the house that we have known as the family home for the past 24 years, it obviously breaks my heart and I want to help them in any way I can.

I'm really in need of some help as i'm really feeling the weight of this situation and it feels like their is no light at the end of the tunnel.

many thanks for any help or suggestions

Mel

Ames

Put simply, there are two types of company that offer to do this. There's the ones that charge a fee and are in it to look out for their own interests. Then there's the free charity ones that are in it to look out for your interests. I agree with you about your dad cancelling any arrangement he has with a fee paying company, and talks to cccs, payplan, CAB or national debtline. Others will be along with more help and advice soon.

poorandindenial

Hi Mel and welcome to the boards

I am so sorry to hear that your dad has got himself into this situation (he won't be the first or the last), he is lucky to have your support and you are in the right place to get help and advice

The first thing is that these companies are well known on this board, they rarely make things better. If your dad can't get access to a proper debt counsellor through CAB he can try any of the organisations listed here (they won't cost a penny)

As far as the company he has already paid £250 to, you may be able to cancel if he is within a cooling off period, was it definitely a deposit or was it the first installment? YOu will need to have a nosey through the paperwork to be sure what he has let himself in for. The chances are that they are offering to run a DMP or IVA for him. The good news is that it is unlikely to b too late to cancel so get in there and find out exactly what your dad owes, how far in arrears etc etc. If mortgage or council tax are in arrears, or if he has a CCJ then these MUST be paid or renegotiated (in the case of the first two) or the consequences can be high ~(whichever agency you speak to will advise you what to do for the best).

You might find the debtremedy tool on the CCCS website (see my earlier link) useful to see what sort of options are suitable for your dad.

Other than that, post on here when you know more and there will be people who have been there and will be able to share their experiences. There is no debt problem that doesn't have a solution. The solution may not be pretty but it is there. Companies that offer to make your debts more manageable or write them off for you rarely do what they say on the tin.

All the best for you and your dad, I look forward to seeing you again later.

Melmoneysaver

Tonight after reading your replies I feel like I have had such a weight lifted, even though I don't know the answers to a lot of your questions, I have asked dad just to let me see any paperwork he has regarding this company and the £250 he paid them, he doesn't seem to recall if this payment was an instalment or a deposit which I'm very :mad: about but I will know tomorrow when I see all the paperwork and hopefully I can go into more detail then.

What I do know though, is that this company keep calling him, trying to get the full amount before they will do anything. I also know that he is £9k in mortgage arrears but has a payment plan which he is currently up to date with but seems likely to default again in his current situation. I know his council tax is up to date! yay.

I'm going to check out all these web sites that I knew nothing about until you just informed me! I could only tell him to go to the CAB but they are very hard to get hold of sometimes and he's trying to keep his business going and I guess he feels he hasn't got the time so that's why I'm helping as much as I can so that he has the right information.

Thank you so much for all your help and the warm welcome I feel so much better tonight to know that there is possibly light at the end of the tunnel.

Mel

RAS

Mel

If you need help sorting out the company then contact NDL for advice on the contract - in PID's list.

Given that you dad is working then NDL or CCCS may be better for debt advice as their telephone lines are open until 8pm.

Whatever you do try to make sure he does not pay anything else. And seriously consider a formal complaint to the OFT and to the Trading Standards office closest to where this company are based, once you have stopped things.

With respect to other debts the priority is the mortgage, HMRC and the CT. If he has to stop paying any consumer creditor, so be it as long as he can keep the most important three creditors going.

Can your mum go out to work to contribute given the current down turn in dad's income? Also check www.entitledto.com to make sure they are getting any benfits to which they might be entitled.

Keep us posted.

Melmoneysaver

Hi again

Well, I got the receipt for the company that took dad's money and its Business Resolve Ltd, What I have here is a Letter of Engagement, "joint IVA" is written on the top and it states an agreed fee for service of £2,500 and a deposit of £200 taken by cheque. Both my Mom and Dad have signed this piece of paper which states "I/we hereby instruct Business Resolve to act in connection with my/our business and finacial affairs. I/we understand that we are responsible for payment of the agreed fee, which is non refundable should i/we elect to dispense with their services".

I guess that answers my question of getting it refunded but Dad thought this piece of paper was legally binding but the above statement seems to suggest otherwise. He is being called by them for the outstanding and i've told him to tell them he's not going to take out their services and hopefully that was the right advice.

He told me today that he had an DMP with CCCS but ended that agreement as he couldn't keep up the payments they wanted from him, he also told me he owes way more than he has equity in the house but losing it isn't an option for them is what they have said to me.

Ras - my Mom works full time and her wages are totally taken into account, most of this debt is joint but was taken out by Dad as he is in total control over the income and expenditure, Mom just has her wages paid into the joint account and expects there to be money there to buy food with.

At the moment I've asked him to call cccs or debtline to see what help they can maybe offer him now as his last agreement with them was 2-3 years ago.

So, I've asked him to call me as soon as he has spoken to cccs and see what his options are, from where I sit though, it doesn't look like he has many that involve keeping the house.


uggghhhh...

Thanks for listening

dancingfairy

Hi Mel. You sound lovely wanting to help your mum and dad out. I would phone National Debtline or CCCS and find out if and how you can get the money your dad paid to them cancelled and to get out of the agreement.
What you need to do is work out an SOA for them (with them) - it's basically a list of every incoming and everyoutgoing. See the post for first time posters for how to do one. I think there is one at Makesenseofcards website as well. The debt agencies will need this to get a clear idea of his financial situation. Once you have done one - post it up here and everyone will give their sugestions. It may well be that a DMP is the best option but we really need to see the SOA first.

It is scary facing up to it - but then you know the enemy you are dealing with and can move on.

Give your parents a big hug too. You'll all get through it together and with our help and one of the charities.
df

peb

There is a cooling off period with most types of contract... Is this one over 14 days old yet?

Melmoneysaver

I'll work on a SOA with them and post it up asap, as for the contract its signed 9th May 2008.

Thanks so much for listening guys, it means so much.

dancingfairy

I'm sure your dad wasn't the first and won't be the last to have problems on a dmp. I'm sure that won't go against him. Hopefully if he gets one this time he will keep them updated with his circumstances as I believe they just reduce your payments to the creditors if you have an issue one month or it isn't working right.
As for your mum - just to give her a few ideas to get started with. Has she tried the shop one brand lower challenge? basically if you normally buy finest/expensive stuff you buy branded if you normally buy branded ie heinz,persil etc you buy supermarket own and then down to basic/no frills versions. Obviously if you don't like it then don't switch permanently but worth a try - most cheap things are fine - I wouldn't buy cheap 'value' meat (that's just me) but pretty much everything is o.k that I've tried. Also does she set a budget for the week and stick to that? maybe get her to try aldi/lidl etc and try the market for fruit and veg etc as it can be cheaper. Is she into BOGOFs etc?

Could also get them to try a spending diary eg write down every time you buy a paper,magazine,dvd,cd,coffee out,sandwich out,pint after work, etc. It is a real eye opener. Obviously these things are not going to magically resolve the problem overnight but might be things they can get started on to feel like they are taking control in conjunction with getting professional help.

I_Feel_Possessed

Hi

I wish you all the best in sorting out your dad's finances. I do the same with my dad's - he is in debt to about £13k. The sad thing is that most of these are credit cards and a personal loan, probably taken out about 8yrs ago. And 8 yrs ago my dad was 73 - and long since retired.

It still does make my blood boil that MBNA, Capital One and Lloyds TSB provide credit cards and loans to OAPs with no other income than a pension.

Several debts have been sold on to debt management companies who try to put up the monthly pymts or persuade you to pay the debt in full. Stick to your guns, get interest stopped and pay on time - even if it is a token pymt. Last week I managed to close one of his debts by paying £1000 (debt was about £1900). They wanted more but I stated that was all I could get my hands on.

Sadly though, I do control all my dad's money, as he had a stroke a few years ago and can't walk far. He is in sheltered accom, housing & council tax benefit and I do literally his shopping, and give him spending money. I still don't know how he manages to spen £30-40 per week in his local shop...?

Biggest challenge was his BT bills. Ended up buying and installing a payphone (as he needs a landline) - and I refuse to listen to his attempts to persuade me he can now control his spending.

Best of luck - there are answers out there - but I know how stressful it can be.