Looking for advice on clearing my mum's debt

ylesia

Hi

I've been browsing the forums here for hours - what a wealth of information! I have learnt so much already but was would like some specific advice if possible

Background Info
In April 2005 my Dad phoned me in tears to say that he had just paid of £2000 in credit cards that my mum had run up, he found the statements and panicked - this money was ALL his savings. He earned less than £10k a year.

I told him to calm down - a few days later and a lot of tears I uncovered the extent of the problem. £35000 in unsecured loans and credit cards - this does not include the £2k above and the £3k I paid off when I thought the debt was "only" 15k and manageable.

Somehow my mum had managed to get all this credit without a job, without my dads knowledge all in her own name and by NOT lying on forms. My mum is a very niave and trusting person and she applied for half of this debt face to face. In one case Halifax gave her a £6k loan in the April when she had taken out a £10k loan with BOS the previous October and not made a single payment!! Talk about irresponsible lending - they are the same blooming company!

I was 6 months pregnant at the time, my Dad fell to pieces on realising the extend of the problems and fell into depression. My mum was also destroyed but I think more relieved that it was all in the open.

Now
So fast forward 4 years - I managed to get all creditors onto a DWP with the CCCS, they have all been receiving under £10 a month for the last 3.5 years and as far as I can tell no problem with phone calls/letters etc.

Around 10 years ago I helped my parents get a mortgage to buy their home, it will be repaid next year with a value of approx. £80k. I would like to get the unsecured debt cleared before then otherwise I'm worried one of the debtors may force bankruptcy.

I've been reading up and was going to make offers of 25% on each debt and see where we go. Most of the debt is with Blair Oliver Scott, Cabot Financial and CI Finance. I've also been reading about some debts being unenforceable and requesting copies of CCA.

I was thinking of writing a letter making the full and final settlement with a P.S. of "if you are not able to accept this full and final settlement then please can you send me a copy of my CCA"

Do you think this is the correct way to do it?

I'm hoping that since they have been receiving next to nothing for almost 4 years then they will be happy with 25% but the fact that my mum and dad have equity in their home is worrying me - the last thing I want is for them to be forced to sell their home. I think that would finish my Dad off.

Please any advice is welcome, whether it be on the question asked or different advice on how to handle this.

My Dad is now retired on state benefits and my mum has never worked and lives with me most of the time. I'm willing to pay up to £10k to settle these debts as that's all I can afford - should I say in the letter that the money is coming from a family member?

Sorry for the long ramble and I appreciate any advice.

Thank you

CHR15

Your parents are very lucky to have such savvy offspring.

Sorry I can't help but Good luck

theartfullodger

I'm so sorry this has happened. See what they say here (Saturday nite not necessarily the best time for wisdom) then I'd suggest talking in the first instance to CaB or a Debt organisation.

You're familiar with...???
http://www.citizensadvice.org.uk/

&

http://www.moneysavingexpert.com/loans/debt-help-plan

I'm sure there is a way forward. The pain those stupid, evil, wicked and dumb financial organisation have caused!

Am I missing something but if the debts are unsecured... then the lender is the one with the problem??

Cheers & Good Luck! Keep pluggin' away.. You're obviously a loving relo & your parents are lucky...


Lodger

jonesMUFCforever

If the property is in joint names of your mum and dad then none of the creditors would be any better off by making your mum bankrupt.
They could put a charge on the house but unless it was enforced by a court order would only come into effect if the property was sold.

Good luck but I don't think you have nothing new to worry about.

ylesia

Thank you for replying - I've spent ages today looking through stuff. I'm lucky to now be able to hopefully get this debt cleared but just want to make sure I don't make things worse. I just can't believe that these lenders have been happy with £5 a month for all these years - just makes me nervous that they are waiting to pounce.

All the debt is unsecured and the only reason they are getting anything is because my dad is making the payments as the CCCS will only help married couples as a unit. My mum has no money at all apart from the equity in the house and she doesn't receive any state benefits.

That's good news about the house, I guess I'm a bit of a "let's work back from the worst case scenario" situation. But I am hoping that unsecured genuinely does mean unsecured.

I wish I had found this place 4 years ago when all this was discovered, may have saved me quite a few sleepness nights and tears.

gaznju

Hi
Please excuse a newbee, but i'm at my witzend...
just been up to see my mum n dad, as mums not been too good (she's 66 and awaiting a knee replacement) she asked if i knew anything about loan insurance and if she could reclaim it,like she'd heard Martin talking about on the radio.....I said i'd look into it but needed to see the agreement which she gave me.....to my amazement mum owes a major high street bank £26,000 with an attatched PPI premium totalling £7500!
Apparantely she borrowed the amount back in 2006 to repay credit cards,..mum and dad live in warden assisted flats (rented) on their state pensions,a small amount of disability benefit, mum as a retired hairdresser does get a small amount of money for doing other residents hair privately....obviousely the £540 a month payment must be crippling them and even if i could get the PPi money back this would only be the tip of the iceberg!
I really need advice on the best way forward- should i contact "B***LAYS" to let them know my concerns...i cant believe that they lent mum the money...as she only had a small income from her job as a part time hairdresser and dad's not worked for years due to dissability.
Can you let me know the route you used?
Thanks
Gary

theoretica

I think you ought to be able to reclaim the PPI as misselling, or most of it. As she is now retired they probably would have trouble justifying under what circumstances it would actually pay out. Good luck!