Think I'm in trouble

sweeper12

Hiya

Just had a letter from the OR asking where all my money went. I remortgaged in 2004 and 2006 raising around £31000 in the process, £15000 first time and £16000 second time. The intention was to pay off debts but each time my OD took £3700 and I ended up paying dribs and drabs off each card etc and living on the rest until "things got better" I have ME amongst other things and was off work for long periods - my family did the work for me and I reimbursed them in different ways as payment. They want to basically know why I was borrowing more money all the time whilst knowing that I couldn't pay it back, I had wanted to borrow enought to consolidate but the Northern Rock refused at the very end and offered me the lower amount - I took it out of desperation. I am now being threatened with a BRO unless I account for virtually every penny but I just can't. My illness means my memory retains info for a mere nanosecond never mind 2 years ago.

I'm a bit scared now..............

gettingitsorted

Hugs to you sweeper i cant offer any advice on this but one of the others will be along soon who maybe can offer some advice .

fermi

All I can say is that you must be straight with your OR.

Give them all the info they want.
Make sure they are fully aware of your circumstances.
Show good faith.

Anything else is out of your control, and what will be will be....

Best of luck

allofadither

O dear sweeper, bit of a pickle eh. Not sure I can really help, but for what it's worth (and being BR that's not much) here are my thoughts.....

If you paid for all your living expenses with the cash then you won't really have any records or receipts, and maybe it's just a question of justifying/explaining this to the OR. But I suppose if you were still using the CC's and your bank account then they will be able see other purchases, and natuarlly wonder where the other cash went.

Do you live alone? Cos the cash you spent doesn't seem that unreasonable.

Sorry...I'm not much use.

sweeper12

Hiya

I live with my partner. He was working part time during that period as he was training to be a driving instructor - he changed that to full time work to get more money. I've also just realised that with the second loan, I paid off my dads car as he was using it to do the work with my family, also to use for my disabled mum, I think it was about £5000 so that won't look very good, will look like I prioritised it which I suppose I did in a way. It gets worse every time I think about it.............

allofadither

Try not to worry too much, if you can get your head round this one you might be able recover the situation.

If you can start writing down these expenses as and when you remember them, regardless of who or what you paid for, then you will at least get a picture of where the money went. And that's a good start.

Expenses for two adults does amount to a fair bit you know.

Has the OR given a deadline for this info?

sweeper12

I have a 7 day deadline but I am already working on my draft. My IP just rang and told me to ring the OR and tell her about the car. She said that the car payment was ok as it enabled me to carry on working and as the payment was in 2005, it didn't mean I ws scheming the money away. It might just work out ok but these things don't half make me jump. It's a good job we have this forum to turn to.

allofadither

Goodness, 7 days isn't long is it. And yes, thinking about money always makes me go weak at the knees. Gud luk sweeper, my heart goes out to you.

Bakeybadoo

I'd be pooping it too! I was nervous enough trying to remember when I'd take the cards out that we were in debt for, let alone how I'd spent the money.

Lots of hugs for you.

Richard_S

sweeper12 wrote: »

Hiya

Just had a letter from the OR asking where all my money went. I remortgaged in 2004 and 2006 raising around £31000 in the process, £15000 first time and £16000 second time. The intention was to pay off debts but each time my OD took £3700 and I ended up paying dribs and drabs off each card etc and living on the rest until "things got better" I have ME amongst other things and was off work for long periods - my family did the work for me and I reimbursed them in different ways as payment. They want to basically know why I was borrowing more money all the time whilst knowing that I couldn't pay it back, I had wanted to borrow enought to consolidate but the Northern Rock refused at the very end and offered me the lower amount - I took it out of desperation. I am now being threatened with a BRO unless I account for virtually every penny but I just can't. My illness means my memory retains info for a mere nanosecond never mind 2 years ago.

I'm a bit scared now..............

Hi sweeper,

It will be the loan you took out in 2006 that will cause the most problems. I would concentrate on trying hardest to account for that one; the one in 2004 will be a lot easier to explain away. Are you able to get any confirmation about your health problems from your doctor or other health professional, that would confirm they were to some extent a contributory factor?

Richard

sweeper12

Hi Richard

I took the last loan in September 2005 and that was the one that I paid off my dads with - about £6000 so my dad says. The OR has said that this is fine and as I remember, my overdraft took £3700 and I did pay off some credit cards at about £1000 each. The rest will be for day to day living I think, I'm sure I didn't do anything wild with the rest but I did buy a new vac, a washer and a dryer cos mine were on the way out and I had the money so I bought them with the loan rather than putting them on another card. My GP can send med info if they ask for it but I have things myself from various doctors if they want those.