Father's debt

My dad's dementia has worsened dramatically since he had major surgery on his heart. I now have POA and am trying to sort out his Finances.

He has debts of £7000 and the interest on these debts are £150 per month. He has no savings and could only make a token
payment if left to himself. I have been paying £360 per month for him from my own money since I found out that he was in debt almost 18 months ago when the sum was considerably larger.

I want to continue to pay on his behalf but the interest means it is going to take a long time. He has little left after paying his sheltered accomodation so I can't ask him to contribute. Most of the spending was on other family members but I know from my own experiences that no help will come from that direction!

As I have POA, could I ask his creditors to freeze the interest to allow me to get the debt paid off? There is a credit card and a catalogue. Is there any point in doing this or would it not be considered as long as I keep paying?

Thanks
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Replies

  • National_DebtlineNational_Debtline Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
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    Hello

    I’m sorry to hear about your father’s health.

    You can certainly negotiate on his behalf, and as you aren’t liable for the debt you don’t have to fund it yourself necessarily.

    If you choose to contribute to the payments that is entirely at your discretion and will be a bonus for the creditors. You could actually complete a SOA based purely on your father’s income and expenditure and negotiate small offers and request frozen interest that way. The creditors are more likely to consider freezing interest if they can see your father will not be able to afford the contractual minimum instalments.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • sourcratessourcrates Forumite
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    Also if any of his accounts pre-date April 2007, a CCA request to each creditor would be my first port of call.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Thanks for your response. Very helpful.

    I will do that today thanks. I realise that I could let it default but he would be horrified if he knew. And I also realise that he won't know but I expect, for example, he took pleasure from buying one of his grandsons a PS4 (although I'm sure it wasn't his idea and may even have been put to him that it would be paid back), and so I think it should be paid back.

    Before his operation I would describe his dimentia as 'often but intermittent' and it has caused some anguish as I believe he has been taken advantage of.

    So I'd rather pay the amount he owes on his behalf but the interest is a bit daunting!

    I am prepared to pay £300 per month which means I can clear it in less than 2 years, or sooner if I get a bonus this year, if I can get the interest frozen.

    If not, I am more reticent to step up as I will be paying for years.
    Sealed pot challenge member #325
    £591.02 / £1500

    £2 saver club member #83
    Target £246 / £500
  • sourcrates wrote: »
    Also if any of his accounts pre-date April 2007, a CCA request to each creditor would be my first port of call.

    They both do. What would the purpose of that be?
    Sealed pot challenge member #325
    £591.02 / £1500

    £2 saver club member #83
    Target £246 / £500
  • edited 27 February 2015 at 11:51AM
    sourcratessourcrates Forumite
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    edited 27 February 2015 at 11:51AM
    Poppops wrote: »
    They both do. What would the purpose of that be?

    In a nutshell, if a creditor cant supply the correct paperwork for a debt, as they would have to do if they went to court, then that debt could be rendered unenforceable.
    A lot of accounts from that period had issues with the paperwork, also its highly unlikely they will still have the original paperwork.

    This is not a "get out of jail free card" but in your situation, it may help you dramatically to improve your position.

    For starters, making a CCA request (a request for a copy of the original agreement) automatically has the effect of putting the account on hold, a creditor cannot enforce that account whilst a CCA request is outstanding.

    This will give you at least a months breathing space, as it takes time to action such a request.

    If they come back to you with a valid copy agreement, then you will have to carry on as before, however, if they cant supply it, then they cant enforce the account in court, its that simple.

    Template letter here :

    Quote:
    (Your home address)
    Date:
    To:

    Dear Sir/Madam

    Account/Ref No:

    With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

    I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

    I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

    I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

    I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

    I/we look forward to hearing from you.

    Yours faithfully



    Your name.
    Print you name rather than use your normal signature, since some DCA's have been known to scan it so they can mock up a fake CCA.

    For the same reason, the statutory fee of £1 should be a postal order.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • edited 3 March 2015 at 4:16PM
    National_DebtlineNational_Debtline Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
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    edited 3 March 2015 at 4:16PM
    You could also request that the creditor considers writing the debt off entirely, at their discretion. This might be considered if your father can barely afford the payments, doesn’t have assets and doesn’t have realistic prospects of paying much towards the debt.

    Of course, if you’d personally rather pay it off yourself then that is your choice.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Thanks again.

    I've thought long and hard about it as I've been paying it for sometime now.

    I'd rather not pay for the debt, but only because I know the debts are partially, and for all I know maybe mostly, spend for my brother. We haven't spoken for years after he never paid me back but my parents would never have a bad word said about anyone.

    I know that my dad would pay for me and so feel like I want to pay the balance, because I can afford it and that is what he would want.
    Sealed pot challenge member #325
    £591.02 / £1500

    £2 saver club member #83
    Target £246 / £500
  • Sourcrates, thanks very much. Will do this first
    Sealed pot challenge member #325
    £591.02 / £1500

    £2 saver club member #83
    Target £246 / £500
  • sourcratessourcrates Forumite
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    Poppops wrote: »
    Sourcrates, thanks very much. Will do this first

    It may be they will be able to supply right paperwork, but theres a good chance they wont be able to.
    Its just a way to help you out as you seem to have been handed the !!!!!! end of the stick.

    Good luck with it, post back if you need further advice.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Does he own property ?
    I do Contracts, all day every day.
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