Some advice needed on paying debts

Angela84

Good evening,

I have taken responsibility for paying off my mums debts.
She has a halifax loan £6k ish, a halifax C/C 1.5k ish, car finance 1.5k ish and a Capital One credit card 5k ish. All are in arrears, both Halifax debts have just been sold onto their 3rd people, Cabot something. All are frozen interest, accepting smaller payments.

Ive been given bags and bags of paperwork. She has sold her house, I am picking up the cheque next week. She has enough money to cover everything.

I can see straight away Capital One has PPI insurance. I don't see for sure about the others.

I'm just wondering what way round to do everything. Shall I start the PPI letters to them all? Or is there something Ive read about contacting them to see if the debt is even inforceable? Or do I offer 50% final settlement figures and clear them?
Or is it worth doing an experian check? I did one for her last year, so it'll cost me £15 now won't it?

I just want to help my mum get debt free, but also get her the best deal! :beer:

On another note, as much as it has been an upsetting experience seeing the mess my mum got herself into, and all in secret, I have found she went to citizens advice, and they have put a big chunk of her paperwork in a lovely folder, written to all the creditors on her behalf etc. She's at some point lost contact with the Citizens advice.

Angela84

Anyone?

happy_bunny_2

PPI claim seems worth a shot. Take a look on the PPI reclaim forum

You could write to the 3rd party companies who own the debt and offer a full and final settlement. See what figure they come back with.

Have you checked her credit report? I would do this to see which accounts have defaulted and when. Do this before the above as it may influence the next steps.

fracturedsun

You can get the statutory credit report for £2... No need to sign up for a monthly fee unless you actually want it. Ignore the big adverts for free credit reports and look for the section which says statutory report £2.

McKneff

You have to have a reason for reclaiming or miss selling.

You dont get it paid back just because yu paid it.

onamissionEU

PPI aside, going for a full and final settlement on the debts - particularly the ones which have been "sold on" - would be the way to go. DO NOT sign any paperwork which makes the debt your legal responsibility - as this would change everything.

For a full and final settlement write to each company explaining that you are in a position to help clear your mothers debts but you are unable to offer the full amount she owes. Offer them 25% to start with and see what they say. Make sure you add that your offer is time limited and that if your offer is turned down, you will focus on your mothers other creditors (politely imply that if they do not agree to settle that they will get nothing!)
Be aware that this may take time depending on the age and amount of the debts. They may also request financial details from your mother (incomes etc) This will all have an effect on their responses. As interest and charges are frozen I assume the debts are older and that the creditors know of your mothers hardships? This will help!

If you can successfully demonstrate that you mother can not pay the full amount any time soon and has no assets for which she can be taken to court, most creditors will be very receptive to getting a partial settlement. MAKE SURE ALL SETTLEMENT AGREEMENTS ARE IN WRITING before paying a penny and that they state that "upon recipt of payment X, the account will be considered closed and that neither company X or any other company will persue the balance of the debt. There is a great !!!!!! thread here - this will provide more info and template letters! Good luck