Power of Attorney & Debt

Doriath Forumite Posts: 1 Newbie

I’ve approximately £30K of unsecured debt (four credit cards and two loans).  No missed payments yet but I’m starting to struggle big time.  I’ve ruled out a consolidation loan, as I don’t want to increase the debt further.  I’m seriously considering defaulting and setting up a DMP with StepChange. 

One of my loans is with the Natwest (£6000 remaining).  I have power of attorney over my mother’s affairs (she has dementia).   Her current account is also with the Natwest and I use it to buy her shopping, etc.  What I want to know is, if I default can this in anyway affect my ability to access her account / debit card?  Should I instead try to continue to pay this loan by itself and exclude it from any DMP?


  • waveyjane
    waveyjane Forumite Posts: 226
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    I don't think the Court of Protection is concerned with the attorney's personal financial affairs as long as they act on the wishes or best interests of the donor. At least, I can't find anything about that on the .gov.uk site.
  • fatbelly
    fatbelly Forumite Posts: 19,234
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    I can't see that being a problem. If your current account is with natwest then you should move it.

    Have a chat to stepchange but you may decide to diy anyway

    You could do cca requests while you wait for the defaults. And build an emergency fund
  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,704
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    edited 14 July at 10:34AM
    Banks can only use the right of "set off" under certain specific circumstances.

    An account not in your name would never be considered for such action.

    Banks are very slow usually to respond to such things, but any accounts you hold with them, that have a credit balance should be closed if you decide to enter debt management, and make sure you don`t open a new one with a bank in the same banking group.

    Coutts & Company
    National Westminster Group
    Royal Bank of Scotland
    Ulster Bank

    Are all in the Nat West Banking group.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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