supporting my brother

midlander81

Hi

I have been supporting my brother with his fiances since last year .I have posted before about this but in a nutshell, he suffers with some quite serious mental health issues and as a result got into a lot of debt. He has struggled to deal with his out of control finances so I started to help him. I have permission to speak to his creditors etc. Last year we managed to negotiate interest freezes on 3 of his debts with 3 different creditors. As he makes the minimum payments, there is no impact on his credit file. This was a big thing for him.

One of his creditors are due to review his accounts at the end of this month. He is getting increasingly stressed by this and is convinced that they are going to immediately start charging him interest. I have emailed the named member of staff who managed his accounts and he has confirmed that they will continue to support him on an ongoing basis and will only start to apply interest when they have reviewed his circumstances and he is able to cope with the change. At the moment he is still in quite a bad place and is receiving treatment via medication and therapy.

I have reassured him that they won't suddenly start applying interest - do you think that this definitely wont' happen based on the email I received?

sourcrates

Hello again,

It’s hard to say really, they have specialists who deal with these kind of issues, but unfortunately you can never know how they are going to react.

I must warn you though, these type of arrangements are usually only temporary, not more than 6 months normally, after which they may start charging again.

I think we discussed the possibility of defaults before, normally that would be th3 way to go, then the balance is frozen, I seem to remember that was unacceptable for some reason ??

Willing2Learn

Since sourcrates mentioned defaults. One option would be to stop paying the creditor that unfreezes charges and interest, so that the account is defaulted.

Your brother is lucky to have you looking out for him

midlander81

sourcrates wrote: »

Hello again,

It’s hard to say really, they have specialists who deal with these kind of issues, but unfortunately you can never know how they are going to react.

I must warn you though, these type of arrangements are usually only temporary, not more than 6 months normally, after which they may start charging again.

I think we discussed the possibility of defaults before, normally that would be th3 way to go, then the balance is frozen, I seem to remember that was unacceptable for some reason ??

Hi,

He is super worried about defaults due to his line of work. It also causes him additional anxiety to think that his credit file could be trashed, despite him having no intentions of taking our any more debts. He does have a mortgage and would like the option of moving his mortgage deal, or even moving house in the future

I have spoken to the company regarding the impact of the interest freeze on his credit report. Apparently as long as the minimum payment is made there is no impact on his credit file whatsoever. I suppose its the same as someone who is on a 0% promotional rate.

sourcrates

midlander81 wrote: »

Hi,

He is super worried about defaults due to his line of work. It also causes him additional anxiety to think that his credit file could be trashed, despite him having no intentions of taking our any more debts. He does have a mortgage and would like the option of moving his mortgage deal, or even moving house in the future

I have spoken to the company regarding the impact of the interest freeze on his credit report. Apparently as long as the minimum payment is made there is no impact on his credit file whatsoever. I suppose its the same as someone who is on a 0% promotional rate.

I remember your previous posts, hopefully the card companies will accommodate him, but I can’t see that arrangement lasting indefinitely.

midlander81

I have managed to speak to his main creditor again. Thet have confirmed via email that there will no detrimental effect on his credit file as he is making the minimum payments. They have removed all of the interest, but he is makjng the full minimum payment as he would be if he was on a 0% offer.

The man I spoke to said that they only log Arrangement to pay markers if the customer is paying less than the contractual payment, which he isn't. Does that sound right?

Willing2Learn

As long as your brother continues to make the minimum contractual payments (as per the original agreement), then I do not believe there will be any AP markers on his file.