Huge debts - urgently need help

palicia

cccs have helped me with all my debts.I was desperate and didn't know which way to turn,then I found out through this website who recommended cccs as it's free.I would say to anyone in debt just give them a call. Just picking up the phone was the hardest thing, everything elce was easy.

wee_V_2

Thanks Chevalier, lots of helpful advice there....

Think her mum's keeping mortgage, electricity etc up-to-date.

She's already getting council tax and disability benefit. She sold her car to pay off the car loan and now has a car through mobility, so she doesn't pay anything for that. So that's as far as we've got. They're now just at the stage of negotiating a settlement figure with the creditors, but it's such a slow process and the banks keep refusing to speak to anyone other than my SIL, even although we sent them all consent letters signed by her to allow her mum or brother to deal with it.

None of the payment protections will pay up because it's related to an existing illness. She's paid so much to them over the years as well!

We think that all this debt worry is probably what triggered the illness/pain again in the first place, so her mum just wants it all paid so it's not hanging over their heads any more.

What do CCCS do? Will they arrange for her to repay a small amount each month? She's not likely to be able to work in the near future and we just don't know what will happen long term, so I think her mum just wants to get all the debt paid. Would she still be best to go through CCCS to negotiate with the creditors for a settlement? They seem to be getting nowhere trying to negotiate themselves.

SunderlandBlackCat

wee_V wrote: »

None of the payment protections will pay up because it's related to an existing illness. She's paid so much to them over the years as well!

In that case was she mis-sold the insurance policies? She may be able to reclaim the monies already paid.

wee_V_2

There was another funny thing - her mum called BOS to ask how much was outstanding on a loan. The loan was originally £15k and she's paid approx £5k. They said £13k was outstanding. Her mum asked how can that be and they said because she took out an insurance policy worth £3k, which has to be paid upfront?????????????????????

I've never heard of this before. Normally you pay the insurance alongside your monthly loan amount surely?

wee_V_2

SunderlandBlackCat wrote: »

In that case was she mis-sold the insurance policies? She may be able to reclaim the monies already paid.

Who would we complain to about being mis-sold the insurance policies? The Financial Ombudsman? Anything's worth a try.

nine9feet

wee_V wrote: »

There was another funny thing - her mum called BOS to ask how much was outstanding on a loan. The loan was originally £15k and she's paid approx £5k. They said £13k was outstanding. Her mum asked how can that be and they said because she took out an insurance policy worth £3k, which has to be paid upfront?????????????????????

I've never heard of this before. Normally you pay the insurance alongside your monthly loan amount surely?

I'm no expert, but every time I have taken out a bank loan and the insurance to cover it, the premium for the whole period of the loan has been added to the (debt) balance and the monthly repayment then calculated on that whole amount borrowed.

That's why the quotes always show the monthly repayment with and without insurance.

HTH
John