Want to be debt free

Langkawilady

Hi, I need some advice.  My son has a credit card debt of £9,000 which is over six years old.  He has received a letter from BPO saying that he could settle the account which is with Cabot for a credit card with Capital One for £4,500.  As you know he can pay in one lump sum or pay it back by direct debit.  He pays child maintenance and at the moment is sofa surfing so hasn't managed to find somewhere to live yet.  He is now back at work after being furloughed for six months.  What would be the least amount he can pay back monthly on the direct debit please.  Many thanks for any help you can give.  

Karonher

When you say over 6 years old do you mean he has not paid anything for over 6 years or just that it built up over 6 years ago? If he is sure he has not made a payment or admitted to the debt being his in writing for over 6 years it could be statute barred so he would not have to pay anything. As for the least amount if he is paying, that would be up to the company. Have they agreed he can pay a reduced amount by direct debit?

Langkawilady

No.  He hasn't paid anything for six years.  It may be longer than that.  It's hard to remember.  We have just had a letter from them making an offer for him to pay.  I haven't made any contact with them.  Thanks for your reply. 

fatbelly

I answered this in the other place

https://forums.moneysavingexpert.com/discussion/comment/78319393#Comment_78319393

It's statute barred so he can defend any court claim (there's unlikely to be one).

His main priority is getting secure accommodation.

He should not make any payment (neither should you) - it's still statute barred if he does but it's a longer argument and a waste of valuable money.

Langkawilady

Hi,  My son has just been turned down to rent a property.  We knew this would probably happen but thought we would try anyway.  The letter stated "Due to adverse credit history you failed the checks and will not be able to proceed with the rent"  Is there a way to sorting this out please?  Apart from the above loan he has a £1500 overdraft and pays child maintenance for one child.  He has a permanent job where he has worked for 15 years.  He was in a very dark place a while back but last year he had a heart attack, where he died twice, and this has completely changed his way of living and his look on life.  He applied to the council but they said he hasn't lived in the area for the last five years, even thought he was born and has lived here for 43 years. and so they can't help him.  Is there any advice anyone can give him?  Many thanks.

Langkawilady

Hi,  My son has just been turned down to rent a property.  We knew this would probably happen but thought we would try anyway.  The letter stated "Due to adverse credit history you failed the checks and will not be able to proceed with the rent"  Is there a way to sorting this out please?  Apart from ta credit card debt of £9000 which apparently is statute barred, he has a £1500 overdraft and pays child maintenance for one child.  He has a permanent job where he has worked for 15 years.  He was in a very dark place a while back but last year he had a heart attack, where he died twice, and this has completely changed his way of living and his look on life.  He applied to the council but they said he hasn't lived in the area for the last five years, even thought he was born and has lived here for 43 years. and so they can't help him.  Is there any advice anyone can give him?  Many thanks.

fatbelly

Langkawilady said:

Hi,  My son has just been turned down to rent a property.  We knew this would probably happen but thought we would try anyway.  The letter stated "Due to adverse credit history you failed the checks and will not be able to proceed with the rent"  Is there a way to sorting this out please?  Apart from the above loan he has a £1500 overdraft and pays child maintenance for one child.  He has a permanent job where he has worked for 15 years.  He was in a very dark place a while back but last year he had a heart attack, where he died twice, and this has completely changed his way of living and his look on life.  He applied to the council but they said he hasn't lived in the area for the last five years, even thought he was born and has lived here for 43 years. and so they can't help him.  Is there any advice anyone can give him?  Many thanks.

You could chat over the homelessness issue with Shelter. The council have a statutory duty to help those who are 'homeless and in priority need' It sounds like they  are trying to wriggle out by saying he is not normally resident in their area. The Local Authority Agreement defines normal residence as either:

• six months' residence in the area during the past 12 months

• three years residence during the previous five years

On the credit file thing it's worth having a look at what's there using the address he uses for his banking. It's a bit of a catch-22 that a stable address and being on the electoral roll helps your file but in order to get stable accommodation you need a good credit file.