Should my brother be receiving more support than this?

midlander81

Hi,

I have posted here many times over the years whilst sorting out my own debts, so I am back asking for some advice regarding my brother.

He is 28 years old and about 6 months ago he suffered a serious breakdown. This was partly due to a relationship breakdown, however in hindsight, he had been struggling with his mental health for a while. He has always been a high acheiver and puts huge pressure on himself. He has a successful job in the city and has done well for himself.

Sadly he didn't talk to us when his issues started and as a result he racked up a lot of debts. He already had around 30K of well managed debt however that increased to nearer 60K. His job means that he can service the debts and he has no missed payments or arrears. He has been able to get a large chunk of the debt at good interest rates so he can chip away at this... with the exception of one credit card.

I won't name the company, but he owes just under 20K on a card to this credit card company. The interest is around 20% so he paying in the region of £330 per month which is making him seriously anxious. He has given me permission to speak to the company on his behalf. They offered 3 months 0% and whilst this was gratefully received it was a short time solution. The amount of interest he is paying is causing him massive anxiety, and whilst he can afford the payments, it's definitely having a detrimental impact on his recovery.

I have spoken to the specialist support team at this bank on his behalf and asked if he could have a longer term lower interest rate. The same company gave me an interest reduction some years ago, from 20% to 6.9% for the life of the balance. They have explained that as he is up to date with payments they can't offer anything. I feel annoyed at this as they aren't differentiating between a customer in financial difficulties and a customer who is unwell.

They have said that if the payments are affordable then they would look at a formal repayment plan, however this would have an adverse impact on his credit file. This isn't really appropriate as he can afford the payments. The nature of his job also means that he has to be probity checked once per year, so any adverse credit would be an issue for him at work. I dread to think how that scenario would affect him. Apparently he has seen other members of staff moved into 'lower risk' roles for similar reasons. His employers know about his health issues and have been supportive. The issue is simply the mental strain of the interest. It's causing him real distress and at the moment he doesn't need that.

The strange this is that a formal repayment plan would automatically freeze all interest and charges anyway! He is just asking for a lower rate so that he can carry on making his payments whilst focussing on his recovery. We have provided the bank with medical evidence from hi GP. He is still receiving quite intensive treatment.

I know that card companies aren't obliged to offer lower rates, however surely there should be some support available for customers like my brother who are genuinely unwell. Surely it's better for everyone for him to carry on making his minimum payments with a lower rate of interest.

Are we asking too much??

[Deleted User]

midlander81 wrote: »

Are we asking too much??

Yes. They have offered a repayment plan will be financially beneficial to him. It's correct that it would be recorded on his credit files as such.

If he would rather not go that route, as he is capable of making the payments, then that is a choice he can make.

If he can continue to make the payments, he should do so and readdress the situation at a later date.

However, he would need to be in a very niche job for a repayment plan to impact him as employers generally only look for (and can see) CCJs and bankruptcies.

midlander81

Deleted_User wrote: »

Yes. They have offered a repayment plan will be financially beneficial to him. It's correct that it would be recorded on his credit files as such.

If he would rather not go that route, as he is capable of making the payments, then that is a choice he can make.

If he can continue to make the payments, he should do so and readdress the situation at a later date.

However, he would need to be in a very niche job for a repayment plan to impact him as employers generally only look for (and can see) CCJs and bankruptcies.

If it were simply a case of him being in financial difficulty then I would agree, however this is a mental health issue. It feels like he can't win whatever he does.

He works for an insurance firm and apparently they are super strict when it comes to probity checking.

It just seems harsh that they can't offer a lower rate of interest ( he isn't asking for 0%) so that he can focus on getting better as opposed to feeling stressed about this interest charges constantly.

[Deleted User]

midlander81 wrote: »

He works for an insurance firm and apparently they are super strict when it comes to probity checking.

I think it's super unlikely they are that super strict.

It would be worth him find out, so he knows his options.

midlander81

I can only go on what he has told me but he is adamant that it would cause him real issues and he has seen others suffer as a is of similar issues. Apparently even a late payment marker can cause alarm. I really don't want him to be worrying about this as well. He is getting better but is still in a pretty bad place.

Even if they could offer him a lower rate for 12 months, to allow him to get his feet back on the group, that would be great. It just seems like a formal payment plan would be of no benefit to anyone. He would have a trashed file and the CC company would receive a lower payment and no interest at all!

worriedDan

I was in a similar sutation to this last year and I did have some support from some of my CC companies.

Barclaycard reduced my interest and another CC provider allowed me an interest freeze with no adverse impact on my Credit file.

I think that financial institutions should support customers with health issues.

I hope your brother gets well soon. He is lucky to have your support

Willing2Learn

Hi midlander81,

Have you and your brother considered getting a 0% balance transfer card? He could then pay off the balance at £300/month @ 0%. (I'm assuming he can get a high credit limit).

Pixie5740

Have you seen the MSE Free Mental Health and Debt Guide?

Could you or your brother find out exactly what his employer is looking for when he is credit checked. I've known people to work for banks with Trust Deeds (sort of like a Scottish IVA) and it hasn't been an issue for their employers.

midlander81

Hi Pixie

His credit utilisation is currently high and has already done a switch around fairly recently. I am not sure he would be eligible right now and I don't want him to apply and get declined.

macman

Since he has already demonstrated that he can make the repayments, why would the creditor agree to a lower rate? Sorry, but it's not going to happen. The creditor knows nothing about his mental health issues other than what the GP has provided and that will not be taken into account.
If the employer is being supportive of his health issues, then could he not discuss his credit position with them too? At present, there is nothing they can see as a black mark against him as long as he continues to service the debt.

midlander81

macman wrote: »

Since he has already demonstrated that he can make the repayments, why would the creditor agree to a lower rate? Sorry, but it's not going to happen. The creditor knows nothing about his mental health issues other than what the GP has provided and that will not be taken into account.
If the employer is being supportive of his health issues, then could he not discuss his credit position with them too? At present, there is nothing they can see as a black mark against him as long as he continues to service the debt.

The CC company initially took great interest in his mental health issues and he/we provided quite a lot of detail regarding the challenges that he faces. He has also provided quite detailed medical evidence.

Surely it should be taken into account? This company have a lot of information on their web page about how they support customers with mental health etc.

The same company offered me a lower rate a few years ago. I wasn't in any difficulties and just thought I would try my luck. If they can lower the interest rate for certain customers, why can't they do it for my brother.

I do wonder if he would be treated differently if his illness was a physical one.