Severe change of circumstances

Yzzie

Hi all, first time poster so apologies if I'm repeating comments from elsewhere. Had a look at the mental health and debt debate and feel this is linked in, but also a broader issue so here goes:-)

I have a credit card at 19.9% with HBOS. (Was with BOS for at least five years, maybe more before the merger) Due to breakdown it is unlikely I will ever be able to work full time and earn the amount I needed to get the card in the first place. Over the last 18 months I have explained this and begged (12 letters from me, 12 rejections from them) for my interest rate to be reduced.

Debt is £4500 approx and for every £100 I pay I get charged £70 of interest. As you can imagine, not helping with the depression or make me feel that I am getting anywhere. Have almost cleared my Ikea card, £60 remaining at £5 a month, and have FD Credit Card, £22 minimum payment, debt reduced by about £12 each time which is fine.

My overall feeling is that there should be some kind of reassessment of a persons ability to pay. HBOS are the only one of my creditors who have not met me half way. I had to beg twice, went to Financial Ombudsman and complained that they did not return my letters.

Is there some kind of guideline out there for Finance companies about how best to deal with people with mental health problems? There does not seem to be. I have contacted the disability rights comission and am waiting to hear back as HBOS have been un-proactive to help me. It is only when I started writing letters I actually got responses. They say I am not eligible for reduced interest rate and many questions I asked still have not been answered in eighteen months like how do I close my account and what are the implications if I do?

I have stated three times in block capitals that I WANT to pay them all their money back and am not filing for bankruptcy/IVA as I know I am responsible. This fact has fallen on deaf ears. I am on my second interest free reduced payments plan (This was soooo hard to arrange) but in the new year that stops and they say they will hand me over to a collection agency if I cannot pay. Why is it so hard or have I got it all wrong and am being incredibly naive?

Any advice greatfully received, sorry it is such a long post, it's all quite complicated :-)

beanielou

Sorry to hear of your difficulties
I think you would be best to go to your local CAB after New Year & get them to assist you
Take care

Yzzie

Thanks for suggestion, unfortuntaely have already been there and was told by a very officious lady "It was my fault for getting into debt in the first place" followed by her opinion that "I clearly didn't understand the way financial companies worked if I expected them to help me now I was in difficulty!" All in all, a horrific, humiliating experience which I am not keen to repeat.

Incidentally, this blame factor was thrown in my direction when I tried to explain to my local Job Centre advisor how nervous I was about not having enough money to pay rent.

It is all a bit more complicated than my original post I guess but overall I have just been amazed at how UNHELPFUL the places you go to get help are! I feel like I am fighting a one woman battle here and in February stop receiving Incapacity benefit and continue to work part-time. I just keep hoping HBOS will eventually respond positively to one of my letters as I have had replies from over 8 people now!

Thanks again anyway and have a good Chrimble yourself :-)

Hanxx

Hi there,

Sorry to hear of your troubles. The frosty reception that you've had from places like the CAB is disgraceful. They are supposed to be there to help you.

Do you know if you have a local debt advice or law centre in your area? I'm not talking about these people that you phone up to get advice, but a place that you can actually walk into. It's worth a try.

http://www.lawcentres.org.uk/

You could also try putting 'community debt advice centre' into a search engine, along with the name of the area in which you live. This might bring up details of somewhere else that you can go for advice.

All the best.

Yzzie

Thanks for the info. Will have a look and see if there is an advice cente near me. CAB woman was so stern and judgemental, not what I had come to expect from previous dealings but when you are in a vulnerable and depressed state of mind, the last thing you feel like doing is lodging a formal complaint... I am trying desperately to keep my stress levels as low as possible but it's the big credit card debt that is the biggest grief!

I suppose what frustrates me so much is that all these IVA agreements are on offer if I give all my debts to them. I really don't have any difficulties with my other cards/loans, just Bank of Scotland and the very high rate. It's like their inability to comprimise is forcing me to say I want an IVA which would mean them not getting all the money which I have told them time and again I wish to pay back in full, it's just the interest which is crippling me!

Fingers crossed the new year will bring some news as I have to revert to full payments in February which will be crunch time. I just keep writing letters explaining and hope for the best at the mo.

AMILLIONDOLLARS

Are you paying for payment protection on your card? as £70 seems quite high for a monthly repayment, If so, why aren't you claiming, if you are unemployed due to illness?

Check you statement for the deduction of PP fees, then start the ball rolling in this direction

tryhard_2

hi YZZIE
you might get helpful suggestions if you post on the debt free forum

Jake'sGran

I don't know if this would work for you i.e. if there is now a problem with your credit record but today I received a letter from M&S offering a 12 months balance transfer with no arrangement fee and a very low interest rate (sorry but the letter is downstairs and I get out of breath so I can't tell you the rate...something like 7%). It was of no interest to me as I use them only to buy currency but if they accepted you it would be a step in the right direction. My son had similar problems to you and I had to become his advocate but he is getting sorted now and no longer has a credit card.

Jake'sGran

Me again Yzzie but I have just been reminded on another thread that M&S do a transfer for life for 3.9%

ralphtown

Feel for you mate.
Been down the road you,re on.

Best thing for me was contact CCCS.
They will send you a pack which includes letters you can photocopy and send to all your creditors,making offers to pay.

I think HBOS is just ramping up your interest and don,t give a !!!! about your health issues.
Phone them again,making an offer to pay and ask for interest to be frozen.
If they really don,t want to know and you,re struggling to pay then the next step is CCCS then your local CAB or independant advice centre.

Hope this helps a bit.

CONSUMER CREDIT COUNSELLING SERVICE.

Do a Google for the phone number.

RALPH.

Yzzie

Thanks for everyone's help. Am still trying to get things sorted. Have spoken to legal and debt helplines again this week but the main problem is that I am only having problems with HBOS. All my other creditors were understanding so I am up to date. They want to take all my debts and close my bank account which I have spent the last 2 years determined to keep open and up to date. I do receive benefits and a small income so there is money coming in now, which there wasn't when I was first ill. The legal advice line was very understanding but explained in legal financial terms, companies did not acknowledge a difference between CAN'T PAY, and NOT ABLE TO PAY. I found that very telling!!

HBOS have made it very difficult from day one. I do not have payment protection on this card but this week wrote again to the customer services department and also the board of directors. I cannot deal with the call centre due to my health problems and find writing the only way of communicating I can deal with. The crazy thing is I have been a customer for 8 years and am willing to pay back everything in full, I just need a reduction from the 19.9% rate so that I do start to chip away at the £5K debt and see a way forward as I will only be working part-time for the foreseable future.

Maybe miracles do happen, and it is coming up to Christmas so I'm keeping everything crossed.

Best wishes and thanks again to everyone for your advice