Power of Attorney & Debt

Doriath

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

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

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

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.