Any experience of getting debt for pensioner written off?

Whumpie

I'm helping to get a 79-year-old's debt problems sorted, and there's just one nasty one that's causing problems: a £5,400 balance from a card taken out in the mid-90s (when already in his mid-60s) and dormant for many years.

There's no way this company is going to get this kind of debt paid by someone of this age with no significant assets and very limited income. But I have to find a way to close the issue off so he's no longer hassled or worried.

I would hope this is one of those cases where the company has to admit it made a bad call with its lending (not a new thing, let's face it) and write it off. But it's never that simple.

Does anyone have any advice or previous experience of this kind of thing?

RAS

Whumpie

Welcome. We really need to know rahter more about this card.

Do you understand the Statute of Limitations (adssuming this chap is in England and Wales)?

Prior to today, what is the last time the pensioner paid?

And if he has paid recently, was their any period prior to that when it was unpaid (dormant) for 6 years?

And which DCA?

Whumpie

Ok - answers as far as I know:
He's in England, not sure what a DCA is (it was a Morgan Stanley card, I believe)
Last payment I believe was in 2008; last spend around 2004. I think - need to trawl through a lot of paperwork first.
Not sure about the 6 year thing - I'll check. What's the basic version of the rules?

RAS

If he last spent on this in 2004 and last paid towards it in 2008, the debt is not statute barred.

He needs to send away and ask for the Consumer credit Agreement. It is possible for one to be legitimate but many issued in the 1990 were not legally sufficient, which means he can prevent legal action to recover the money.

Also does he have the default letter?

Whumpie

I'm going to start picking through all the paperwork tonight, having spent most of the weekend trawling through cabinets full of old docs. I know we've got a scan of an agreement from the debt collector, but it looks incomplete.

If the creditor knows they stand little or no chance of regaining as much as the cost of enforcing, are they likely to write the debt off? I can't see any advantage in them doing anything else, but I also know that kind of sense rarely comes into their thinking!

BigCraigJohn

It will most likely just get passed round but if its unenforceable theyll just pass it back once they realise they wont get anything . A lot of debt collectors collecting money is really them trying there luck ie telling you that you have to pay this when in fact you really dont but they prey on the fact you dont know your rights.
Depending on the creditor id say theres a 0-30% its legally enforceable from the mid 90s. I did have a Lloyds card that was and they found it but that seems very rare.
Another thing to check is if there was any ppi sold with the card also charges as ppi would almost certainly of been mis sold given his age and those charges can be outragious given compound interest was added.
Id say step 1 see if he has paid or acknowledged in the last 6 years, if not you send a statute barred letter and that should be the end of it.
If not write and ask for a copy of the agreement and get it checked, chances are it wont be enforceable or there will be nothing, again you can write and tell them to !!!!!! off.

Ps dont find an agreement or atleast dont let them know if you do, they should have it and if they dont its game over.

Who was the credit card btw?

Whumpie

Cheers for that - will crack on and do just that. It was a Morgan Stanley card, which is part of the problem - the daft debt collector (Cabot) was madly chasing for a balance on a Goldfish card (who bought out Morgan Stanley years back), which of course my father denied all knowledge of.

By the way - on the PPI: Is this always shown as a separate, monthly payment on statements, or are there other ways to check if there was any? Also, if the card has been active in any way in the past 6 years and there was PPI, does that mean you can claim back before the 6 year cut-off?

mrsirismoon

I am in a similar position helping out my parents with their debt.
They have managed to have all their debts reduced to small monthly payments but they are still struggling with them.
So I should contact the companies and request a signed credit agreement from them? and if they dont have them then the debt is not enforcable?

Do I contact the original card company or the credit collection agency dealing with the debt?

Thanks

Tixy

mrsirismoon

What sort of debts do your parents have?
Only some debts are covered by the consumer credit act and therefore have a CCA (eg credit cards and most loans are, overdrafts and things like phone contracts are not).
And how long ago were the accounts opened?

If you do want to go down this route then you would send letters to whoever they are paying their repayments to.

How did they agree reduced payments with their creditors? have you negotiated with all individually or have you calculated how much they can afford and then split this between creditors. Have they had any advice from a debt charity?

mrsirismoon

Also, once I get a copy of an agreement where is the best place to have it checked?

Thanks