Dad in debt

zarry2009

Hi all

I am new to this forum and wondered if I coud have a little advice for my Dad? I'll keep it brief!

Dad has £8,000 on an MBNA credit card. This is his only creditor and he has had the card for over 10 years without any problems. However, he was diagnosed with throat cancer two years ago and from then on the payments to MBNA were covered by his card protection insurance. He is now in remission from his cancer but he will never work again. The insurance protection company paid his repayments until a couple of months ago when Dad turned 65. He is now fully reliant on a state pension and cannot make the repayments himself.

He has contacted MBNA in writing to set up a payment plan and sent off a budget expenditure sheet, plus continuing to pay each month what he can afford. He has repeatedly asked them not to telephone him as he finds it physically very hard to speak as a result of his cancer. However, they will not stop calling! Is there anyway I can get the calls to stop? He always replies to correspondence and is very keen to get a payment plan sort, but the constant telephoning is a nightmare!

Any advice would be gratefully received.

Many thanks!

RAS

Hi

I am going to throw a bit of fuel onto flames here but..

1. If this card is over 10 years old, there is a very good chance that the debt is unenforceable. You need to start chasing them for the Consumer Credit Agreement. MBNA have a poor reputation of owning these.

2. It is against OFT Guidelines to refuse to deal by letter, so will post that up for you as well.

MrMuttley

MBNA and their agencies do have a bit of a reputation for constant calling creditors. write to them and tell them that you will not deal with them by phone only in writing

If they still dont stop calling you do have legal avenues but you can also contact BT and tell them your getting harrasing calls. they will likely offer you 3 free months of their nusciance calls package called "Choose to refuse" which allows you to put in a pin number and block the last line that called you up to a maximum of ten phone lines and it even owrks if the number is withheld by the caller.

They will get bored of calling soon enough just dont neglect the letters when they come in

HTH

Mike

RAS

original CCA request letter:

You send this registered post and your dad does not sign it. Either print or you sign on his behalf.

And yes you put I do not acknowledge........, even though he is paying.


Quote:
Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.

With reference to the above, we would be grateful if you would send us a copy of this credit agreement, statement of account and notice of assignment.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully

RAS

Also send this letter for harassment. This is one example posted by fermi

Given that they know what your father's health situation is, make it quite explicit that he has throat cancer and that he has trouble speaking over the phonce, so all communication must be written.


regsitered post and a separate envelope.

Harassment by telephone


Quote:

Your Street
Town
City
Postcode
DATE HERE

Company Name
Road
Town
City / County
Postcode


Dear Sirs,

Harassment by telephone

Account Number: XXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing.

I have verbally requested that these stop, but I am still receiving calls. (Delete if necessary)

I now require all further correspondence from your company to be made in writing only.

I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine.

Please treat this also as a formal complaint, and send me a copy of your company complaints procedure.

Be advised that any further telephone calls from your company will be recorded. (**Even if you don‘t yet have recording equipment!!**)

Yours faithfully,


(type don't sign)



if that does not work make a formal compalint to their complaints division.

earplugs

Hi Zarry

I'm an ex CAB debt adviser and I am waiting to start my new job with a debt charity - just so you know where I'm coming from.

RAS draft letter above regarding the Consumer Credit Act is definately the way to go if you don't think your dad has either paid any money to MBNA in the last 6 years or if MBNA haven't contacted your dad in the last six years. It's always worth sending off for the original agreement. they can't hassle your dad for repayment of the debt until they provide the original agreement so I'd definately do as RAS says.

So that your dad is taking his problem into his own hands and isn't being beholden to MBNA, I would say that he should set up a standing order with his bank for the amount that HE wants to pay to MBNA. His credit rating will be affected if he does this, but if he has already missed any payments then his rating has already been affected.

Does your dad own his own property? If he does, then ignore this next bit. If he rents his property he may want to think about holding on till April 09 when Debt Relief Orders come into effect. These have the same effect as going bankrupt. It would mean that your dad would have to have less than £300 in assets and less than £50 available income after paying off all essential expenditure, but after a year the debt is wiped off. I know CAB are an authorised intermediary (they can do the debt relief order for you).

Two other things about your dads income - has he made a claim for pension credit and has he made a claim for Attendance Allowance? If not, go to direct.gov.uk and ring the benefit enquiry line and get the Attendance Allowance form sent out to him.

Get him to ring the pension service and they can do a calculation over the phone to see if he will qualify for pension credit.

Hope thats some help.

zarry2009

Dear all

Thank you all so much for your help! the letter was exactly what I had in mind. We have told MBNA so many times not to call as Dad can't physically speak to them but hopefully this letter will do the trick!

Thanks to Earplugs for the great post! The local hospice have sorted out all his pension forms for him so we are confident he is getting as much as he is entitled to. Dad does own his own home; he is in effect asset rich and cash poor so a debt relief order would not work for him.

Hopefully now he can sort out a payment plan with them and get on with paying off what he owes!!

Thank you all again.

Zarry :easter:

RAS

hi

Send the CCA letter.

If that is not produced, they cannot enforce the debt in the courts and MBNA have to accept whatever he can pay. And if he is on benefits, that is £1 per month.

Nigella_2

Could the family come up with some money to offer in Full and Final settlement??

MBNA may put a charging order on his property.

I think he can't get away under the limitation act as he has been making recent payments and then PPI payments.

Creditors are tamed slightly if contacted by a debt relief charity, National Debt Line / CCCS / CAB etc.

Fire_Fox

Is there any possibility your dad could take in a lodger? This income is tax exempt up to several grand a year, and would free up enough money for him not to have to worry about paying the bills. He could take in, say, summer foreign language students or a weekday travelling worker of he didn't fancy someone full time. Then again he may enjoy the company?