Mum in hospital - trying to sort her debt with Lowell - Please help/advise

gj195

Hello,

I hope someone can help or point me in the right direction.

My Mother in Law, is in hospital and i'm trying to sort out her finances. The one i'm struggling with(because i don't really know what i'm doing! ) is her Littlewoods catalogue, which has recently been sold onto Lowell. I'm waiting for their file to be updated saying i can act on her behalf. But what is the best way to arrange a settlement agreement or get it written off? Is this possible? The amount owed is approx £1,150. I'm annoyed at my sister in law, as half of the money owed is hers and she's stopped re-paying mum which is how mum started missing payments as she can't afford it. It would be a bit of a weight off her shoulders if i could arrange or do something...anything!

Any advise or help would be great please.

Thank you

GeorgeUK

Getting it written off is unlikely. You may however be able to make a reduced settlement offer - this is usually a lump sum amount. It is important that it is a full and final offer that they accept and confirm in writing before any payments is made though.

If you can't pay a lump sum, you may need to try to set up repayments.

Can you do a statement of affairs for your MIL's income and expenditure?
http://www.makesenseofcards.com/soacalc.html

gargrave50

Unfortunately I had a hard time trying to set up repayments with Lowells. How about writing to Lowell offering a low F&F. Can she afford to make a full and final settlement?

Tixy

If you (or MIL/SIL) do go down the reduced F&F route then read this factsheet for guidance - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

gj195

Thanks guys, can't really do a SOA for her yet, as i don't know enough of her benefit payments.

I was planning on making a lump sum offer, which i would pay, and then sort out with her later. Do i make an offer? If so, what is a reasonable amount that they might accept? Or do they come up with the offer? i would of course get everything in writing as i don't trust them!! lol

Thanks again

GeorgeUK

The amount they may accept could depend on the length of time that the debt has been defaulted for. As a starting point, you could try 50%.

If the debt was with the original creditor, it can be between 50%-75%
And with a DCA, 25%-50%. Like i say though, it may depend on whether it is newly defaulted or not - also possibly on how much you could make each month for repayments. It may be worth their while taking a lump sum rather than waiting for years for the full amount to be settled.

Ames

Is this her only debt? Does she have any assets (house etc?). I think a lot depends on the long term situation - if she's only in hospital for a few days then back to normal is a lot different to if it's something longer term.

gj195

Update:

Lowell have phoned me saying they will not accept my F&F settlement offer and expect the full payment. After explaining the situation again they phoned back and said they would accept the settlement if i send in a doctors note.

The main query i have is in the letter i sent - (template from the national debtline website) i requested that the credit file be marked 'settled'. The guy from Lowell said this couldn't be done by them and was down to the credit people, he said it would be marked 'partial settlement'. What does this mean? I'm worried that if i pay the settlement, if/when my MIL comes out of hospital they start chasing her again.

Thanks

AMILLIONDOLLARS

'partial settlement'. This sounds like they will be chasing her for the rest when she come out of hospital. You need the wording full and final settlement, to be sure of NO come backs.

AMD

gj195

Thanks, that's what i was suspicious of! Waiting to see the wording of the letter when it comes!

MrsTinks

The credit file can be marked as "partially settled" so long as you have a letter stating that they accept the payment as full and final and will not pursue your MIL for the remainder of the amount.
Not meaning to ask an insensitive question... but is it likely that your MIL will not recover and might be close to passing? I know this sounds really cold and callous... but if she has no assets etc then when she passes any debts would die with her.
I know that might sound horrid - but there is no reason to pay the debt if she is close to passing... (really sorry if anyone gets upset but I just don't think you should feel forced into paying a debt for your MIL if she isn't going to be able to be around to appreciate it... )