Daughters debt

GINGERBIRD67

My daughter has been off sick for 6 months from the NHS with mental health issues. She's just told me she's in debt to £22,000. To MBNA and Lloyd's Credit Cards and Zopa loan. She's been on half pay since September. Lloyds and Zopa have been understanding so far but MBNA have not. She has yet to receive her December pay due to a mistake by the NHS. I have covered her household bills for January. Today bailiffs arrived on behalf of MBNA and she was terrified. Ive told her not to let them in.if they come back. I think she should apply for a DRO immediately - no way should these companies have let her have this amount of money
Advice would be appreciated please

RAS

MBNA do not send bailiffs for a recent debt. Actually, they don't send bailiffs for basic debts. 

Did she let these "bailiffs" in? Did they leave any documentation regarding the debt or visit? The company name would be a start.

So either she's not told you the whole story or she's confused a visit from a door "collector" who has a much power as a chocolate teapot, or they've already taken her to court, got a CCJ and she's not responded to further enforcement.

I'd suggest she gets together whatever documentation she has and speaks to or messages Stepchange 0800 1388 111 or National Debtline 0808 808 4000,  before 8pm. Expect a long wait for them to pick up and try to do it before 5pm as traffic may be lighter. Both also offer on-line advice or web-chat 24/7 if she doesn't like the phone.

Brie

If RAS suggestions (which are very good) don't work for your daughter I would add the suggestions of Citizen's advice and/or the local food bank both of which could have debt advisers available. 

RAS

I agree with Brie re the other options but both usually close by 5pm and the weekend is approaching. Stepchange and National Debtline are open to phone enquiries on Saturday am. 

Once this panic is over, your daughter may find the face to face with CAB or the foodbank more helpful. 

MalMonroe

Hi, I agree with RAS and Brie, above, do encourage your daughter to contact one of the free debt help agencies. If she is eligible for a DRO, they will help her to apply for one. You can only apply for a DRO through a specialist DRO adviser, also called an 'approved intermediary'. If she isn't eligible then they will work with your daughter to find another way of dealing with her debt.

In the past I used StepChange and they helped me to turn things around at a time when I was in a terrible financial and mental state. It was suggested that I apply for a DRO and although it stays with you for six years in total (life's not exactly a bowl of cherries but creditors leave you alone) (such a great relief) - I'm now debt free and able to manage my money. 

Perhaps you could be with your daughter when she phones (phoning would be my recommendation rather than to using the online service) for help because it does feel scary at first but at StepChange I was allocated my own adviser who I kept in contact with all the way through my DRO. She helped me to arrange it and apply for it. She was kind, friendly, helpful and most important of all, non-judgemental. The last thing you need is people being critical. 

This is what StepChange says about bailiffs and debt collectors. (e.g. Bailiffs don't come until letters have been sent, for example In most cases, a bailiff can only be sent to your property after court action - either via magistrates’ court, High Court or County Court, depending on the debt - has been taken. The exception is HM Revenue & Customs, who can use bailiffs without taking you to court first. Even then, a bailiff only typically gets involved if you’ve ignored correspondence from the court or failed to set up a payment everyone can agree on.)

StepChange says about debt-collectors - "If a debt collector shows up at your house, you don’t have to open the door to them or let them in. If you ask them to leave, they have to go, and they can’t take anything from your home either."

https://www.stepchange.org/debt-info/debt-collection/bailiffs-and-debt-collectors-differences.aspx

They really can and do make differences to people's lives. Help is out there. 

Grumpy_chap

GINGERBIRD67 said:

My daughter has been off sick for 6 months from the NHS 

It may be worth understanding when and how any sick pay allowances will be reduced or cease.  This will make a difference to the planning.

Also, contact the advice services that others have linked to.

fatbelly

Is your daughter well enough to post (maybe with your help) on the debt-free wannabe board?

We could then get the full detail and give better pointers.

sourcrates

I doubt they were bailiffs, there has to have been court action taken, a CCJ awarded, and a history of non payment, to escalate to the bailiff stage, and even then it would never be the original creditor who would take such action.

Most likely a collector working on behalf of MBNA, possibly a resolve call rep who got lucky and found her in.

You don`t have to worry about any of this, its just basic debt collection activity, they have no power or authority to do anything, don`t engage with them and ask them to move on, don`t rush into things here in a panic.

I`m with fatbelly on this.