Help with husbands big debt - long story

jimmerjammer

Hello
Thanks for all your suggestions. I am not sure the Bank charges thing is going to help us as I found a few of his old statments from when we went to the CAB in 2004 and the charges weren't high as he had such a huge overdraft but it was the interest that was charged that was massive.

Also if he has not used this account since 2004 will they go back six years from that date or from now? That would only be three years!

I am certainly going to fight about the PPI for both loans and the credit card and see what happens.

No - nothing was secured on the property at all.

The SOA is a weird one as of course right now there are no earnings coming in. But I am going to do it tonight. Been out dealing with a dead work laptop and that is causing me grief as well right now.

Thank you everyone for your input though. I was thinking of writing the letter to Lloyds stating everything chronologically since 2004 and how no-one every replied to letters or phone calls etc. and about the PPI and possibly freezing interest etc. and also mention that I am actively seeking advice from forums such as this etc just to let them know that we are going to be proactive.

If they took him to court over it - if house is in my name and car etc - could they make me sell the house? If not I can only see the evidence being he can't pay what he hasn't got.

Any thoughts on that one?

mrmajika

jimmerjammer wrote:

Both the loans and the credit card INSISTED he had payment protection on them, but of course as we all know, it counts for zilch when you are self employed.

The PPI on both loans and credit cards with Lloyds TSB covers the self-employed. It is not true of most other lenders, but LTSB DO cover the self employed.

They should not have INSISTED that he had to take this as this would be against the bank policy. However, what goes on behind the closed interview room door when the loan is being applied for... who knows!

Seaxwyn

Hi jimmerjammer

I have nothing useful to suggest but just wanted to send sympathies and support. My OH and I are both self-employed too and we have been through some hard times thanks to our fluctuating income. Just last month outgoings exceeded income by more than £2,000 - eek!

A couple of observations which you can feel free to ignore.

Firstly, re getting a 'normal' job. My OH was in a dreadful situation of denial, accounts imploding, standing orders bouncing around his ears, and I bullied him into taking a part-time driving job that paid cash. The mere fact of having access to cash did him the world of good and he has done much better facing up to things.

Also - bank charges - like you I only had a few small charges but I got them back. Every little helps.

Best of luck with it all.

Seaxwyn

jimmerjammer

Seaxwyn - thanks for the words of understanding - sadly I would love to get him doing any kind of additional job but he seems to think something will come along any minute now and apart from spending all my life not talking to him there is little I can do. It has to be bearable to live without the extra hassle of strops by him!

mrmajika when you wrote "The PPI on both loans and credit cards with Lloyds TSB covers the self-employed. It is not true of most other lenders, but LTSB DO cover the self employed" - this has confused me no end because when he had a conversation with them about this they said he was not covered.
He told them that he had lost most of his regular contacts and they said tough. So that's a real puzzle.

He has basically been stung by massive interest charges and not bank charges so it all seems a bit different to the norm on here which is a real shame.

The thing is if I sent the bank a SOA and then said that we are not earning anything between us at the moment it's going to be hard for them to even accept. I am living on dec and jan's money right now and hope it will last (frugally) until March/April.

This is exhausting - particularly as it's left as my problem when I don't have a debt problem!!!!

Aaaghhhh

mrmajika

jimmerjammer wrote:

mrmajika when you wrote "The PPI on both loans and credit cards with Lloyds TSB covers the self-employed. It is not true of most other lenders, but LTSB DO cover the self employed" - this has confused me no end because when he had a conversation with them about this they said he was not covered.
He told them that he had lost most of his regular contacts and they said tough. So that's a real puzzle.

Hi

LTSB do cover the self employed with the unemployment cover and accident/sickness cover elements of the PPI.

He would have to be registered as unemployed before that cover would kick in. If he is self employed, but has lost regular work/ contracts, but continues to be self employed then this is not covered.

To be eligible for the unemployment cover they would need to see proof, ie registering for Job Seekers Allowance.

Hope This Helps

jimmerjammer

We have received a reply from Lloyds bank today which I am attaching and have a few points to make that I would appreciate any advice on.

Maria Nicholson
Case Official
Customer Debt Management
Springfield House
45 Welsh Back
Bristol BS1 4AG

Without Prejudice

Dear Mr. xxxx

Re: Your business accounts formerly held at xxxx Branch

Thank you for our letter of the 21st February 2007.

I note the contents of your letter and can advise that unfortunately the bank cannot accept your proposals to make monthly payments of £50 in reduction of your outstanding debt as the payment would not cover interest on a monthly basis.
However I have taken into consideration your circumstances and can advise that the bank has agreed to reduce your total outstanding debt from £30,984.38 to £22,984.38 please note that this is not an admission of any liability in respect to any complaints you may have against Lloyds TSB.

The banks offer to reduce your total outstanding debt by £8,000 is on the condition that monthly proposals of £150 are received for a period of twelve months, once 12 months have elapsed your payments will be reviewed with a view to increasing them. If you are unable to increase your monthly payments from £50 to £150 I will have no other option than to transfer your case to the banks external collection agents for the full outstanding balance.

Please can you contact me with the next 14 days to let me know how you would like to proceed.

I look forward to hearing from you shortly.


1 - I believe my husband's debt to be about £22K in the first place. He had two 5 year £10K loans one of which was four or five months away from finishing plus a £10K overdraft - so their amount of £30K plus never made sense and every time we asked the bank they agreed but never concluded.

2. Both of these loans were on the understanding that he had to have PPI even though he is self employed. Sadly he throws everything away and there are no copies of the original loans to read terms. He lost three regular jobs and was not covered.

3. They have ignored the fact we said that the CAB wrote to them and they never replied and that every time we rang to speak to someone they were never there - so nothing was ever done. Should we go back to the CAB?

4. They have also ignored the fact that we have asked for the interest to be frozen.

5. I can do an SAR for them - but it would just show all our outgoings with nothing coming in right now. I am also self employed and have three days work in 12 weeks. We are living off my earning from Nov/Dec/Jan which will run out next month.

6. Help - not sure what to do. My plan is to reply and say that they have not answered the questions re the discrepancy with the first loan amount owing and the request to freeze interest. But can I also ask for copies of both of the loan agreements to see the terms regarding the PPI?

I would really appreciate anyone's advice on this. Thank you

climbgirl

jimmerjammer wrote:

You have really made me laugh - first get a normal job!!!! - I wish - I would love a normal job - unfortunatley I have done this one for so long I am now not qualified for anything - couldn't even be a secretary if I wanted!!

This was my immediate thought as well - one of you needs to get a job that isn't self-employed. I think you're being a bit flippant here. I'm not sure what it is you do, but there must be versions of the work which don't mean being self-employed.

I think you're brushing this off too quickly. You haven't posted a full SOA but if you both have no income coming in from being self-employed, things are going to ugly really quick.

climbgirl

I'd suggest you contact the CAB/CCCS/Payplan as soon as possible. although to be honest if you have no income coming in I'm not sure they're going to be able to help with any form of debt management plan. They can get creditors to agree to freeze interest and accept a repayment plan based on your incomings and outgoings, but with no incomings it's going to be difficult.

If you're not going to at least consider one or both of you getting "regular" jobs, then bankruptcy might be one of the few options open to you. It's impossible to service debts without income.

You need to get onto reclaiming the PPI and bank charges as soon as possible. Martin has written articles about both these, read these as a starting point for what to do.

CLAPTON

Having reread your thread i'm not really sure of any of the financial facts..it would really help if you posted a SOA.

jimmerjammer

Hello. Please be assured that I am in no way flippant about any of this. If it came across as such then perhaps I am feeling strained due to the fact that I have to deal with all of this due to my husband sticking his head in the sand. And it's no good saying he can't because I have tried and it gets me nowhere other than silence, which is also unbearable.

Please also be aware that I have never, and do not, owe any money - this debt is all his which he allowed to accumulate over many years and then had to tell me when the banks finally said no.

We are both 50 and have worked in the same field for 30 years - if I could get a permanent job trust me I would in a heartbeat. But I have rung, emailed and written to many companies and they are not interested.

I have to be honest and tell you that I am desperately upset right now and am looking for a bit of advice.

I do not know if he has had any bank charges against him as he did not go over his overdraft limit and so it was usually high interest charges that made the debt go up. This is a business account and I am unsure if there is a different procedure.

I also don't know if we could claim any of the PPI payments back as again he doesn't keep anything and so I am lost on that one too.

I have done an SOA - I made several cuts last year but there may be more I can do. Our combined earnings since Christmas are £2500 which is how we are managing to keep up this month. My husband has monies owed of £950 and I have £500 due. This has paid for January and February with a little left. It is always quiet this time of year but never this bad. My next decent amount of work is April/May.

We have both been self employed since 1990 and so know about lean months but of course have not had (well actually we obviously did have) the debts outstanding - which apparently he was at one point paying as much £700 per month against.

Mortgage £392.22
Insurance £41.47 (to cover mortgage)
Life Assurance £18.29 (for me)
Council Tax £140
Water £20
Electricity £69.50 (switched both electric and gas last year through Uswitch)
Gas £41
Buildings & Contents Insurance £50 (unable to get cheaper quotes due to subsidence)
TV Licence £12
Car Insurance £30
Car Maintenance £15
Telephone £40
Mobile £50 (for both of us)
Food £250
Tube Travel – variable – average £80
Ntl - £30
Tax & NI - £180 (this amount rarely happens)
Lloyds TSB Debt £250 (my husbands – for overdraft and two loans which is what we are trying to reduce)

Total - £1709.48

I have frozen both our pensions

If the loans were on his business account - does it make any difference regarding the PPI?

I feel I have been told off but hope it's just because I am feeling super sensitive right now.
I appreciate your taking the time to comment.