How do we finish off these debts? Over 15 years old

MissMayflower27

Hope I'm posting this in the right place!




Asking a question on behalf of a relative who had financial difficulties a few years ago. They ran into financial difficulties around 15-20 years ago and ran up debts. Finances became so difficult they were unable to settle the debts (credit cards, store credit, unsecured loans) and they defaulted on them. Not wanting to not pay, they made voluntary agreements (through CCA) to make minimum payments and increase these as and when they had more funds. This has been going on for over 15 years now and whilst some of the debts have cleared some still remain on the same agreement. No payments have been missed. Most of the debts have been sold on from the original creditor.


In addition, two of the debts have been handed down to different agencies and have had interest added on which shouldn’t have been added (due to original agreement with the original company that no interest would be added) – how do we deal with this (if we even can?)? The debt is still now more than the original debt due to the interest despite payments all these years. We’ve raised with the new company holding the debt who say they will look into this but never do.


My main question now though is, is there any way to bring this to an end. My relative is now 68yrs old and retired on a minimal pension plus state pension (around £10k income a year). They don’t own their own home, have one second hand 10yr old car and have no savings. They were made redundant 7 years ago and haven’t worked since. They would really like to settle this once and for all but have no idea how. They’ve had poor advice in the past (selling a house etc) so are sceptical about taking advice from so called ‘advisors’ but I wondered if anyone on here would be able to help.


Thank you

sourcrates

Hi,

CCA request to all creditors, extreamly unlikely to be able to comply after 20 years.
Information and template letter here :

https://www.nationaldebtline.org/EW/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx

Non compliance would mean accounts would be unenforceable.

A DCA cannot add interest to a debt unless the original agreement allowed them to do so, most don't.
You/they, should of raised a written complaint, and then gone to the FOS if the complaint was rejected, time limits apply to complaints, you usually have to pass to the ombudsman within 6 months, however you can raise the complaint now, and I think you should.

National_Debtline

If the payments have been going on for so many years that will establish a good payment history (and potential liability if it went to court). When you do informal negotiations the creditor/ debt collector can freeze interest and charges at their own discretion. It is possible for one company to agree to this and another to refuse. You should check the agreement if you have it, but the interest and charges could well be enforceable (as could the debt itself).

Obviously it depends on how much your relative owes but perhaps bankruptcy or a Debt Relief Order may be a suitable option to help them draw a line under things. It would get the debts written off but there are obviously consequences to this sort of option - such as damage to your credit file and a possible risk to assets. How much do they owe? Hopefully they would consider free debt advice at some point to get a clear view of their options.


Laura
@natdebtline

Marktheshark

Beware Debt charities work in favour of lenders with advice.
Follow Sourcrates advice and CCA them all