Dont know which way to turn

Dougie1308

Hi all, have not posted before but am a regular reader, and you guys n gals sure do know your stuff !
Sorry if this post is a bit long winded, but probably best you get a complete build up of the overall picture.
Up untill October 2006 i had a fairly good job with a tied cottage, during that year i developed an illness, obstructive sleep apneoa, although it was several months before this was confirmed, but basically if i slept for eight hours a night i was probably getting about an hour and a half sleep per night, coupled with short term memory loss, my line manager was very unsympathetic and put the pressure on me to achieve targets,which were impossible to meet, caperbility studies etc, which resulted in a breakdown with a year off work with the knock effect of me losing my job and the house with it.
I had a credit card with MBNA but did not want the PPI and bank with Santander i owed about £8000 on the card, for the first 6 months of being off sick i was on full pay then 6 months at half pay, so could afford the £200 per month i was paying, during the half pay period i defaulted on 2 months dd, then left the employment in the october. I was earning around £26000 and paying £22 per month rent. I was lucky to get another job in the december of 2007 but the salary was £17000, Anyway after getting the usual threats from MBNA they said they would freeze the interest as long as i pay £70 per month to them, an hour after that phone call they rang me back and said why didnt i put a claim in to the insurance Co i said i didnt have one they said i did and if i increase the payments to £113 it would reinstate the insurance, i explained to them that i had this mental problem and that i found it hard to understand everything they were saying coupled with the short term memory loss, i was on a no hoper. Well they sent me the claim forms and i duly received £2000 knocked off my debt. Still owe around £4500, I thought in my mental state it was a one off payment to start the insurance again,so i phoned them to say i can no longer afford £113 a month so i want to stop the insurance, i was then told i could do that but my payments must remaimn the same, so would be no better off.
I have a monthly income off £1150, an overdraft of £1050, every month some dd dont get paid for which im charged about £75 a month the dd then get payed at the begining of the next month then it starts allover again, im 60 this year have sold everything i can and cant do any overtime as im phisycally worn out by Friday, the good wife i have and i, have not been out socially since xmas 2005 and this year we cut out buying the grand kids xmas pressies Do you think i may have any luck with
A) getting any comeback on the PPI
getting bank charges droped/back
C) offering MBNA a reduced amout, say £50
Below is a list of income/outgoings

Income
£1150

Outgings
Rent £390
Community Tax £140
Shopping £300
Gas £40
Electric £40
Petrol for work £60
MBNA £113
Car tax/Ins £40
TV license £11
Mobile £15
Home phone £12
Life Ins £20
Funeral Plan £25
House Ins £10
Sky Broad Band £26 ( cancelled at the end of Feb )

TOTAL £1242

My wife brings home around £600 per month, she gives me the shortfull on my earnings, pays the water rates tops up gas/electric if needed and shopping, pet ins, her own loan of £3000, and pays hp on her car £190. Sorry again about the length of this, and if anybody can help i would be very grateful, if not do you know of a cheap gun for sale !! Thanks very much, Doug

dancingfairy

o.k so in summary you had a credit card with MBNA - you couldn't pay it because you got ill lost your job etc and didn't have any PPI on it. I understand that but what I don't understand is the 'they sent you claim forms and knocked off 2000 off the debt' - what sort of claim forms were these - were they court forms, forms for some kind of payment plan - I'm not sure I understand that part - perhaps you could explain.
Easier points though - Have MBNA have ever taken you to court and got a CCJ against you? if not then they will have to have what you can afford - whether that's 50 pounds a month or 5 pounds a month.
Secondly I would check the website entitledto.com as the name suggests it explains to you what benefits you are entitled to - which will make things easier for you if you qualify.
Thirdly I would get in touch with a debt charity that Martin recommends - try your local CAB or National Debtline or CCCS - the consumer credit counselling service.
Fourthly I would suggest getting yourself a new bank account not connected to anyone you owe money to - Co-op do good basic bank accounts I'm told and won't credit check you or anything like that. What you need to is make sure the essential bills are paid and then split whatever is 'spare' between the people you owe money to - in this case MBNA and what will then be your old overdraft. By having a seperate account you will be more in control and will be able to set up a payment plan for you old overdraft without feeling threatened that they will suddenly demand it back or close your account - you can pay it back at a rate you can afford.
I hope these things help you but others will be along to help shortly and also the debt charities will assist you as well.
Best of Luck - if you need any more help/opinions just ask.
df

dancingfairy

Your wife might also benefit from having a chat to the debt charities with regards to her debts as well. Frankly as you have limited means and no assets the debt charities may suggest bankruptcy as a good choice for one or both of you. Given everything you have been through with illness, loss of job, having to move etc etc it is much less stressful than that and will give you an opportunity to have a clean slate and enjoy your pension years without having all this stress and worry hanging over you.
I am not saying that this is your only option - clearly the debt charities can make recommendations but at the end of the day it's up to you what works best for you and your wife so if bankruptcy is something you are uncomfortable with then there are other options.
df

Dougie1308

Thank you so much DF, i already feel better, mabe only temporarily tho !
When MBNA said i had Insurance they sent me the address and number of the Ins Co who i got in touch with, had to get the job Centre and Doctor to fill in respective parts then send it back to them, presumably they sent MBNA the £2000

dancingfairy

Hmm - well I really don't understand what's gone on there - what I would maybe suggest is a SAR (subject access request) - I don't know how to do this - maybe google it - it costs about 10 pounds I think that gives you all the info they have on you. You really need to know how much you owe, how the money was knocked off - was it insurance as you think and what's left and how much is interest and charges.
you may have cause for complaint - it's very difficult to say but I would have thought that when you get the info you can complain to MBNA about the way you were treated and then the Ombudsman -as you have clearly stated that you were vulnerable - ie lost house, lost your job, had a breakdown and still hadn't recovered fully and didn't understand what they were talking about/did.
Do get in touch with one of the charities - they are there to help.
Also - remember at the end of the day they can't have what you haven't got - no matter how much they huff and puff and threaten to blow your house down - it's all hot air - you can't go to prison (apart from failing to pay council tax), they can't take your house (as your renting), really the worst they can do is ruin your credit rating - which frankly a) is probably not great anyway and b) is the least of your worries. They may threaten you with court but again the worst is a judge will agree with them that you owe money - they still can't have what you haven't got - it just ain't possible.
df

Dougie1308

Thanks again I'll have a look at SAR and see whats involved

Dougie1308

When i do change banks, do i just let the old bank get in touch with me when they realise my wages have not appeared in my acc. and then tell them how much i am prepared to pay them?
Also when told by MBNA that i could stop paying for PPi but would still have to carryon paying the same to them instead, was that accurate advice, can they insist on it, or do you think they were just chanceing their luck? Thanks