We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Outstanding credit card debt - now in a care home.

SilasMarner
SilasMarner Posts: 112 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
edited Today at 9:18AM in Debt-free wannabe
Good Afternoon,
A family member of mine has moved into a care home. He has little income after fees et al, no savings and a 12k credit card debt over 3 cards. He tells me that a family member has phoned the individual credit card providers, explained the situation and has their agreement to cancel the debts. To me, this seems unlikely on the strength of a phone call. I would appreciate the views of someone who has experience in this arena. Thanks for reading.

Comments

  • born_again
    born_again Posts: 21,190 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    Does said person have POA to speak for the person in the care home?
    Life in the slow lane
  • fatbelly
    fatbelly Posts: 23,189 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    I was going to suggest moving this to debt free wannabe on the strength of the title but it sounds like this person has taken advice, done the right thing and been successful.

    Nothing more to say except well done
  • elsien
    elsien Posts: 36,447 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 3 October at 6:31PM
    If they have capacity around their finances, then where they live is not relevant. They still owe the money and normal debt processes/solutions would generally apply.
    Debt companies may have given up because  chasing people in care homes is not necessarily a good look. Having experience of people in this situation in mental health unit where creditors  haven’t given up chasing that easily I would definitely want confirmation that the debt has been cancelled rather than just being put on hold.


    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • SilasMarner
    SilasMarner Posts: 112 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Thank you for your replies. No POA - but account holder was probably present at the call.  I didn't think it would be that easy TBH. Cancellation may be confirmed - but until I saw the paperwork I would be a little cynical as to where this went after the phone calls. 
  • retiredbanker1
    retiredbanker1 Posts: 767 Forumite
    500 Posts Second Anniversary Name Dropper
    Credit card companies will know personal information such as DOB and they can take a view on whether they can get their monies back.
    If the card issuer is also their bank they can see what income goes into their account.

    Whether a family member (with customer authority) or say CAB ring on their behalf the back office procedure will be the same.
  • sourcrates
    sourcrates Posts: 31,894 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    My Brother ended up in a care home after suffering a stroke that relieved him of the majority of his capacity to understand anything but the most basic of instructions, this happened overnight, so shows how quickly life can change for any of us.

    I had authority to act on his financial matters, which is different to a POA or a deputyship.

    He had debts on credit cards a loan etc, I wrote to each lender, enclosing medical evidence of lack of capacity etc, and each one took the decision to write the debts off with immediate effect.

    Now as to whether anyone could achieve that result after just a phone call, I would not like to say, in the vast majority of cases they would need to see proof of what you are telling them.
    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 forumteam@moneysavingexpert.com. 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
  • elsien
    elsien Posts: 36,447 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
     Although just to flag up that a third-party authority ends when someone loses capacity.
    Because they no longer have the ability to monitor or cancel it.  
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • RAS
    RAS Posts: 36,031 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Similar to sourcrates with £25k debt and no assets,  the partner rang and the creditor advised that if the situation didn't improve, they'd "just have to close the account."

    Agreed to hold off all action for 6 months and await update. When medics advised there was no chance of working again and lacked capacity to make financial decisions, hold was extended until guardianship was granted. Now written off.
    If you've have not made a mistake, you've made nothing
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.9K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.1K Spending & Discounts
  • 244.9K Work, Benefits & Business
  • 600.4K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.