Advice on loan payments

roadster

Hi
I am asking for some advice/guidance for my sister in-law who has got herself into a bit of a pickle.

In Jan 09 she took out a loan with Abbey. All was hunky dory until she lost her job in August last year. She didnt take out PPI on the loan. She has been claiming benefits since then, job seekers and housing benefit. The later she has to top up a little bit as it is not enough to cover her rent.

The Abbey are being quite unhelpful, ringing her several times of day, demanding payments of any kind, even taking out of her acount the benefits that get paid in. Sometimes leaving her nothing to live on. I know the laws on ROSO but I was under the impression that it couldnt be taken if it was benefits.

She is a single girl living on her own with no dependants. She has worked since leaving school some 12 years and is not a scrounger or someone who is workshy.

Any advice would be greatly appreciated and would pass on to her.

i hope someone can help her.

AfterDark

I'm not an expert but I'm sure they are allowed to take the money from any money that enters her account.. benefits included. Has she conacted abbey via writing to them know her situation ? spoken to CAB ?

roadster

She has spoken to the Abbey and they are not sympathetic. Just want her to make any kind of payment. They have suggested she contact cccs and set up a dmp. But i was under the impression that whatever the government gave her to live on, was meant to be for living on not for payment of debt.

I recall somewhere on here reading about defered payments or debt free in 12 months with some kind of plan, but not quite sure what that is all about.

Clive_Woody

Another option would be for her to open another current account and have her benefits paid into that one so Abbey were unable to access them.

At the end of the day the best advice is for her to find a job, any job, and start repayments as soon as possible.

CLAPTON

she simply must open another bank a/c and get her benefits paid in.... today would be a good time to do that.
once she does that then she can pay whatever she can afford to abbey.
she should alos write aletter of complaint to abbey about their treatment; saying she is unemplyed and asking that they freeze any charges and interest until she finds new employment