Hospitalized after stroke - cannot pay cc bills

carolyn0903

How do cc companies deal with someone who has had a stroke and is paralysed so cannot pay bills? He has no one that can afford to pay for him, what will cc company do? Many thanks

jd87

Well I hate to say it, but this is what they sell PPI (payment protection insurance) for. They aren't going to give people any kind of payment protection for free out of the goodness of their hearts, because then there'd be no point in selling the PPI product.

You might be able to get a payment holiday or agree lower repayments with them, but it will probably damage your credit file.

System

I think the question was aimed more toward somebody who has the money to pay but is physically unable to due to not being able to sign a cheque, using a phone to pay by debit card etc. rather somebody with no income.

That is how I read the question but unfortunately do not have an answer.

worried_jim

jd87 wrote: »

Well I hate to say it, but this is what they sell PPI (payment protection insurance) for. They aren't going to give people any kind of payment protection for free out of the goodness of their hearts, because then there'd be no point in selling the PPI product.

You might be able to get a payment holiday or agree lower repayments with them, but it will probably damage your credit file.

Actually you are wrong. If the bank understand that they are in a position where they are unable to recover the funds ever thru sickness there is a real possibility that the debt will be written off completely, this may effect a persons credit file as technically the debt will remain unpaid but the bank wont take any action to recover as there is no point and will just cost them further expense. You will need to talk to the bank and they will require medical documentation- it won't be easy and they will dig their heels in as they need to make sure that it is just the genuine and not all the won't pay muppets out there. Good luck.

Banks only sell PPI to make a profit and for no other reason.

izools

For that to happen they may require (or it may be easier) for the debtor to declare bankruptcy.

However if the debtor is a home-owner there is a realistic possibility for the debt to be recovered through the estate and as such the bank / creditor won't just write it off.

You should be able to arrange a reduce payment plan with the creditors by sending them a Statement of Affairs along with an affordable monthly offer on the basis they freeze interest. The CAB can help with this. Whatever happens though the debtor's credit file is likely to be adversely affected.

Good luck!

worried_jim

The op means that the person looses their job and there ability to earn and just go on to benefits and a fixed income that which will not increase and provide no income to cover their debts.

p00hsticks

carolyn0903 wrote: »

How do cc companies deal with someone who has had a stroke and is paralysed so cannot pay bills? He has no one that can afford to pay for him, what will cc company do? Many thanks

AS other posters have suggested, it's unclear whether you mean that he can afford to pay but is physically unable to, or that his stroke has led to a drop in income that means he cannot afford to pay the bills any more.

In either case if he is no longer going to be physcially capable of managing his affairs then he is going to need to authorise someone to be able to act on his behalf with the banks, possibly via a Power of Attorney. If he is struggling financially ,then this person needs to sit down with him and draw up a Statement of Affairs outlining his income and outgoings each month and send it to each of his creditors offering to pay whatever he an afford (even if it's jsut £1 a month). The debt free wannabe board would be worth a visit for help in doing this.

lisyloo

I set up an EPA (enduring power of attorney) when they were free so my husband can act on my behalf.
There was advice at the time to do this.
This means that should I be incaapacitated he would immediately be able to act on my behalf.
As my husband he would eventually be able to get access but with the EPA that has been signed and witnessed in adavnce he'd be able to move much quicker and banks recognise the documentation.

I believe it's now much more expensive to do this which is why there was publicity about it at the time.]

If your income drops significantly then there are only really two options.
1) If it is manageable then the debts need to be managed by dealing with creditors.
2) If it is not manageable at all then ultimately you'd be looking at bankruptcy and the banks would have to write it off.

In addition to PPI you can also get income protection insurance, so all this should be thought about up front when taking on debts.
Generally death, sickness, accident and redundancy should be considered. Also savings can help.

chattychappy

Really hope the OP comes back to clarify her one line question which I also didn't think was particularly clear. People are obviously keen to help with answers...