advice please

mardatha

My son has an excellent credit history and an account with the TSB, for his wages and DDs.
He has a loan with them with them but did not take out insurance.
He is going to have to go off work sick for quite a while as he needs an op on his feet.
What should he do re the bank ? Will they be understanding re cutting payments right down - or will they grab his statutory sick pay to cover the loan ? Should he open another account to prevent this while he talks to them?

zppp

mardatha wrote: »

My son has an excellent credit history and an account with the TSB, for his wages and DDs.
He has a loan with them with them but did not take out insurance.
He is going to have to go off work sick for quite a while as he needs an op on his feet.
What should he do re the bank ? Will they be understanding re cutting payments right down - or will they grab his statutory sick pay to cover the loan ? Should he open another account to prevent this while he talks to them?

How much does he owe and how long has he got left to repay?
Depending on affordability there is a chance they may be able to refinance the loan over a longer term. This will reduce the loan repayment, but is heavily dependant upon the amount of income he recieves. The other health warning apart from extending the term is that this may incur an interest penalty. The material effect of this depends on the balance and term outstanding on the loan.

Otherwise, he should contact them with details of his circumstances and make an arrangement to pay. How long they will allow depends on a variety of factors, and whilst they may be able to reduce the repayments for a short while, they may require those payments to be made up very quickly after your son recovering.

Hope that is of use

mardatha

Ok TY for that - I don't know how much or how long, haven't asked but it wont be very much, and he took it out a year ago so it should maybe just have a year to run. It will not be a big loan. He might not be able to go back to his work though, this is a worry.
EDITED - he will only get SSP.

mardatha

Ok, have re-posted this in the "Loans" forum which is maybe the better place for it