Mums DMP cancelled - intrum and Cabot

Gingernewt

I have been trying to help my 71 year old mum with her debts since she became ill in January. She had been in a DMP for 7 years initially paying more but as income decreased paying  £60 monthly off (now) £90,000 of debt.She only stopped working after being hospitalised in January.

She lives in a property with £30k left of interest only mortgage. It is currently on the market and when sold there will be enough for her to downsize to an appropriate property and pay this off but little else. 

We have written to all of her creditors asking to write off the debts as she has had to stop work , is really ill and doesn't have money left to pay them. The majority of them have written them off.  When we told Stepchange they pretty much closed her DMP and left her (me) to it as her budget wouldn't have enough in it to pay then. She gets full state pension but nothing else and as far as I can tell isn't eligible for anything else. 

So now we are left with the below:

Cabot - £25k - 3 accounts taken out 1995, 2004 and 2008

Intrum - £4.5 k - Tesco credit card taken out 2015/16 

Halifax - £3.5k - managed by Moorcroft. They put account on hold for 6 months in April while asking Halifax to write off and haven't heard back yet

I'm not sure where to go next really. She doesn't have the money to pay then and has no way of getting the money. We can deal with Halifax when we hear back from them but Cabot and intrum. Both have moved the accounts to the special support team and keep asking for health and budget updates every couple of weeks . Neither of these things are going to change! They have both also suggested step change and payplan but after being abandoned by step change she is unwilling to deal with them.

At this point I am angry that they ever let her take all this debt out constantly increasing limits etc. Her income was never high and the debt just piled up over years of desperation with interest and charges. I'm not even convinced that accounts hadn't been duplicated over the years as there were multiple accounts with the same original lender but a different debt collector.  

I don't know where to go next, I know there are options to dispute accounts but my understanding is that having gone with stepchange previously the debts have been acknowledged and can't be disputed. Does anyone have any ideas? 

Floss

Stop paying.
Send CCA requests.
Look at this: https://debtcamel.co.uk/refunds-catalogue-credit-card/

elsien

Have you put her details through a benefits calculator? Would she not be eligible for Pension credit and council tax benefit?

Gingernewt

elsien said:

Have you put her details through a benefits calculator? Would she not be eligible for Pension credit and council tax benefit?

Yes and I think she would be eligible for about £1 of council tax benefit currently but once she has moved the lower band council tax will mean none. She does get single person discount.

Pension credit is to top income up to £218.15 and state pension is £221.20 and they go up together so it has been made intentionally so no-one who gets full state pension will get it.

elsien

What about attendance allowance if she has health issues? That isn’t means tested.

Gingernewt

Floss said:

Stop paying.
Send CCA requests.
Look at this:

Thank you, I will write the CCA letters and get them posted once I can get a postal order. She has not paid anything since February on any of them, in the last few weeks they have started suggesting token payments. 

I will look into the refunds, I think she is scared of annoying them into taking her to court. 

elsien

Even if they do take it to court, they can’t take money she hasn’t got. 

Fully appreciate it she doesn’t want the stress of that when she’s so unwell but in practice, it will change very little

Gingernewt

elsien said:

What about attendance allowance if she has health issues? That isn’t means tested.

I don't know about that one, I will investigate and ask her GP at the next appointment, thank you! 

elsien

It’s not based on diagnosis, it’s based on her day-to-day care needs. She doesn’t have to be actually getting the help in order to qualify, just have the underlying need. There’s another thread on here about it somewhere, but it seems to be applied properly on the paper for rather than online and get help if you need to. 

Gingernewt

elsien said:

Even if they do take it to court, they can’t take money she hasn’t got. 

Fully appreciate it she doesn’t want the stress of that when she’s so unwell but in practice, it will change very little

That is very true, I have told her this but she has always been easily stressed and upset by things. I guess she has had this hanging over her for 30 years and not told anyone so it must be pretty scary until I got older and stuck my nose in her business. Thanks 

Rob5342

I'd persist with the write off requests as it will take 45 years to clear them at £60 a month. Don't mention that the house is on the market. Making CCA requests is a good idea, there is a very good chance they won't be able to produce them for the older debts. 

Even she doesn't get anywhere with those two things then remember that they will be open to a settlement offer.