Living on Pension Credit and owing money to a loan company.

yorkshire_grafter

Hi

I wonder if someone could give me some advice for an elderly friend of mine?

She stood as a guarantor for her son who purchased a car. He fell behind on the payments and the company took the car back. She buried her head in the sand and ultimately the company took her to court and she is in debt to them and including court costs owes them £1500.

She is in receipt of Pension Credit Guarantee and the company have demand £150 per month. She said she has filled in an income and expenditure but they still want £150.:eek:

What can I do to help her?

char_student

When you say taken to court - does she have a CCJ? Is the court order £150 per month? If so they need to send in a variation order form. The income expenditure form should show how much she could afford, speak to CAB. They can check she is within the allowable figures - i expect PC guarentee would only leave her with a small amount left

yorkshire_grafter

Thanks for that - we have only discussed this across a cup of tea. I will ask her tomorrow if I can have a look at the paperwork.

Many thanks

char_student

Thats ok....report back tomorrow and I will try to help

yorkshire_grafter

Met with my friend today. It is a CCJ. She has managed to find the 1st £150 which was due on 18th March 2010. She believes she can manage to find £50 per month.

She is 75 years of age and totally out of her depth dealing with this. She thinks she completed an income/expenditure form but only put down £25 per week for food! She said it didn't ask her for anything else.

Many thanks for your time.

char_student

Ok so who is asking for £150? This is a letter from the court ie the judge has stated that your friend must pay £150? If so she needs to send in a variation order to the court, stating her circumstances and that she can only afford £50pm. Also, a she is on PC I expect she would get a fee remission for the variation so she would need to complete that too

MyopicMoo

Your best bet is to have a look on the direct gov site and have a look at their CCJ page. This tells you what to do and how to apply to have the repayment amount reduced. If you work out her income and expenditure on CCCS site it will prompt you if the amounts are too high - it is better for her to slightly overestimate within the limit to make sure she has enough to live on.

What is the son doing to help her?

yorkshire_grafter

Hi

Many thanks for your help.

The loan company is asking for the money via the court. The letter I have in front of me is from a court titled 'Judgment for Claimant' and that states a debt of £1444.22 + £75 costs. She sent the £150 direct to the loan company.

I'll have a look on the direct gov site.

Regarding her son, well personally I could wring his neck! She last saw him on Boxing Day and he and his wife both know that money is outstanding and that she is directly liable. My friend left me in no doubt they have other debt etc and it doesn't seem to bother them. My friend is having sleepless nights - she is nearly 75. Oh hum.

Happytogetdebtfree

All the best and good luck with sorting the issue out :-)

char_student

Read this:

http://www.hmcourts-service.gov.uk/courtfinder/forms/ex326_0405.pdf (Variation orders)

http://www.hmcourts-service.gov.uk/courtfinder/forms/ex160a_web_0709.pdf (Fee remission)