daughter: student loans and credit card company

TessaHerts

Hello all, just found the site and spent the morning going through it. I would really appreciate some advice

My daughter suffered a series of bereavements at the end of 2009 and start of 2010, became clinically depressed and while she has soldiered on at work and managed to keep on top of rent payments etc I have discovered that she has not been opening any post since last February: including from student loans, bank companies etc. She lives hundreds of miles away so while I knew she was struggling emotionally I didn't realise that her anxiety was such that she couldn't face her mail, until I spoke with her at Christmas.
I am doing my best to help her, as she is incredibly anxious and ashamed about this, though I am not very knowledgeable about such things and as am widowed and retired, I don't think I can offer very much financial assistance to her.

I don't think we have all of her post, but what we do have, seems to have the following problems: she has an old style student loan from the 1990s and has deferred payment for some years as she is on a very low income (under £10,000 freelance work but she does not claim any benefits). Unfortunately she seems to have missed the 2010 student loan deferral deadline: what can we expect from this? Will she be able to defer at such a late stage? Should we write to student loans company directly about the situation and ask for an update on what to do next and the most recent information? Would they be able to notify any debt collection agencies?

She also has issues with her credit card: a forgotten about annual subscription went out of her natwest credit card account last March, which put her over the agreed limit (which was around £800 and she has a direct debit to pay off the minimum interest each month). It seems that Natwest have sent a number of letters asking her to get in touch and imposing charges. She has been with Natwest since 1990 and did have money in her natwest current account (and was not given the option to extend her credit limit) should I contact them on her behalf about this?

Should I perhaps contact a debt advice agency to help say the right things to these people? Will her low income make a difference?
Do you think I will be able to contact the student loans company and credit card company on her behalf?

Sorry for the long first post, I have been inspired by all of your research and knowledge. Tess

fermi

When was the deferment deadline for the student loan?

SLC can at their discretion back-date a deferment for 3 months. Missed payments that occurred as a result of non-deferment prior to those 3 months will make up arrears that will have to be paid.

SLC would normally need signed authorization from her for you to be able to deal with them on her behalf.

dollybeads

TessaHerts wrote: »

Hello all, just found the site and spent the morning going through it. I would really appreciate some advice

My daughter suffered a series of bereavements at the end of 2009 and start of 2010, became clinically depressed and while she has soldiered on at work and managed to keep on top of rent payments etc I have discovered that she has not been opening any post since last February: including from student loans, bank companies etc. She lives hundreds of miles away so while I knew she was struggling emotionally I didn't realise that her anxiety was such that she couldn't face her mail, until I spoke with her at Christmas.
I am doing my best to help her, as she is incredibly anxious and ashamed about this, though I am not very knowledgeable about such things and as am widowed and retired, I don't think I can offer very much financial assistance to her.

I don't think we have all of her post, but what we do have, seems to have the following problems: she has an old style student loan from the 1990s and has deferred payment for some years as she is on a very low income (under £10,000 freelance work but she does not claim any benefits). Unfortunately she seems to have missed the 2010 student loan deferral deadline: what can we expect from this? Will she be able to defer at such a late stage? Should we write to student loans company directly about the situation and ask for an update on what to do next and the most recent information? Would they be able to notify any debt collection agencies?

She also has issues with her credit card: a forgotten about annual subscription went out of her natwest credit card account last March, which put her over the agreed limit (which was around £800 and she has a direct debit to pay off the minimum interest each month). It seems that Natwest have sent a number of letters asking her to get in touch and imposing charges. She has been with Natwest since 1990 and did have money in her natwest current account (and was not given the option to extend her credit limit) should I contact them on her behalf about this?

Should I perhaps contact a debt advice agency to help say the right things to these people? Will her low income make a difference?
Do you think I will be able to contact the student loans company and credit card company on her behalf?

Sorry for the long first post, I have been inspired by all of your research and knowledge. Tess

Hey Tess

Welcome and well done for posting on here, just wanted to send you and your daughter a virtual hug :grouphug:. I am pretty new to sorting out my debts so not much help I am afraid, but you will find tons of help and advice on here from very knowledgable and friendly people. Hang in there and help will be winging its way to you shortly.

TessaHerts

Thank you for this Fermi! The deferment deadline was possibly around April last year (another letter I am searching for as we speak) if we go by past years' deadlines. So I suspect we are looking at a number of months of arrears.

Thanks Dollybeads! It is quite a relief to hear others' experiences. I am trying to keep strong for my daughter but am really quite shaken up. Good luck to you!

abby1234519

TessaHerts wrote: »

Hello all, just found the site and spent the morning going through it. I would really appreciate some advice

My daughter suffered a series of bereavements at the end of 2009 and start of 2010, became clinically depressed and while she has soldiered on at work and managed to keep on top of rent payments etc I have discovered that she has not been opening any post since last February: including from student loans, bank companies etc. She lives hundreds of miles away so while I knew she was struggling emotionally I didn't realise that her anxiety was such that she couldn't face her mail, until I spoke with her at Christmas.
I am doing my best to help her, as she is incredibly anxious and ashamed about this, though I am not very knowledgeable about such things and as am widowed and retired, I don't think I can offer very much financial assistance to her.

I don't think we have all of her post, but what we do have, seems to have the following problems: she has an old style student loan from the 1990s and has deferred payment for some years as she is on a very low income (under £10,000 freelance work but she does not claim any benefits). Unfortunately she seems to have missed the 2010 student loan deferral deadline: what can we expect from this? Will she be able to defer at such a late stage? Should we write to student loans company directly about the situation and ask for an update on what to do next and the most recent information? Would they be able to notify any debt collection agencies?

She also has issues with her credit card: a forgotten about annual subscription went out of her natwest credit card account last March, which put her over the agreed limit (which was around £800 and she has a direct debit to pay off the minimum interest each month). It seems that Natwest have sent a number of letters asking her to get in touch and imposing charges. She has been with Natwest since 1990 and did have money in her natwest current account (and was not given the option to extend her credit limit) should I contact them on her behalf about this?

Should I perhaps contact a debt advice agency to help say the right things to these people? Will her low income make a difference?
Do you think I will be able to contact the student loans company and credit card company on her behalf?

Sorry for the long first post, I have been inspired by all of your research and knowledge. Tess

Student finance will let you discuss it with them IF your daughter sends a letter saying that she wants you to, she has to give a password as well that you then give on the phone. Well thats how I had to do it last year

As for the credit card company I don't think you can talk about it unless you have Power of Attourney, might be wrong on that I would double check

fermi

TessaHerts wrote: »

Thank you for this Fermi! The deferment deadline was possibly around April last year (another letter I am searching for as we speak) if we go by past years' deadlines. So I suspect we are looking at a number of months of arrears.

Up to 9 months possibly then? 6 (ish) if you act PDQ and get things backdated.

They can be a pain, but if you persevere then they will be OK in the end. Been there, done that.

TessaHerts

Thanks Abby - I will look into that.

Fermi: well done for getting through the same process! If I deal with the student loans company will they contact any debt collection agencies also or do I need to contact all of them at the same time?

fermi

TessaHerts wrote: »

Fermi: well done for getting through the same process! If I deal with the student loans company will they contact any debt collection agencies also or do I need to contact all of them at the same time?

They will most likely tell you that they won't recall any debts passed to collection agencies.

That is nonsense. They most certainly will if you make enough fuss.

You may also see letters from a company called 'Smith, Lawson & Co.'.

From their letters, they look to be a debt collection agency. However, they are REALLY just a department/office (or even just a letterhead) of the SLC themselves. So don't be intimidated by anything they may write on those letterheads.

TessaHerts

Thank you Fermi (am not looking forward to all of this, I need to develop my kicking up a fuss side!). Sorry to sound dim, but what do I do if I tell them to recall the debts handed on to collection agencies? Would that mean that they will all get handled centrally?

savingcaz

Maybe it would be worth writing to all your daughters creditors and explaining the situation. Ask your daughter to give you the authority to deal with her accounts. send them all recorded delivery if possible and then possibly send token payments of £1 to show willing.

Next you'll need to decide what is going to happen, are you looking to help her financially or just to sort out payment plans etc for her?

If possible could you get a SOA (links at top) from your daughter and then maybe look at snowballing her debts. Also as the year ends any payments that she has made (not made) can be re claimed at the financial year end as this has happened with me.

Hope you manage to sort it out. and a big hug to you both

Carolyn

TessaHerts

Thanks Carolyn, I can't really help her financially which is such a shame but I want to help her put payment plans in place so that things are easier. And encourage her to open her post.