Paying to a debt company

BungalowBel

Hi, I wonder if anyone can help.

My friend's son owes a few hundred pounds to a debt company and has now had a 'final request ' letter. My friend wants to pay it off for him.

She only has one account, a joint account with her husband. He is not her son's father and she does not want her husband to know about the transaction. She has the money, but it is in cash. It has to be paid in full by 3rd March.

My questions are :

1. What is the best way for her to pay it?
2. I am willing to pay it out of my bank account, then put the cash back in, but will this in any way connect me or my address with the debt?

(Please no comments about whether or not she should pay this debt off for him. She is adamant that this is what she wants to do).

Brie

1 - Never pay a debt with cash, assuming that is even possible, as there is not a strong "paper" trail to show the debt has been paid. Cheque or bank transfer would be best.

2 - the debt company doesn't give a monkey's as to where the payment comes from as long as the debt is paid. There would be no link back to you if you paid it from your account and they would have no right to dip into your account for more or to look to you to pay any future debt they have for him.

The thing not mentioned - where's the debt from? If it's from staying too long in a Tesco or pub car park without registering the car details then there's a solution to that without paying anything. Look on the parking forum for more details but step one is to talk to the "owner" of the car park (i.e. Tesco or pub) and ask them to get the PCN or "invoice" stopped. If that doesn't work then he should wait til a court case is raised and submit a defence to say the signs weren't obvious or visible or whatever - the forum can really help at that stage and the normal thing is that the whole thing gets dropped as the debt company won't spend the time/money to go to court as they know they don't have a strong case.

BungalowBel

It's a loan he took out and only ever paid two payments. It's only for £320 but the interest rate is huge! He was supposed to pay £25 a week but has only made two payments. He is now about three months in arrears (I think).

Thank you for your reply about it not being connected with my address. I expect him to do the same thing again and I do not want debt letters arriving on my doorstep.

Would it show up in any credit search and be held against me that I had paid money to a money lender?

GrumpyDil

No it wouldn't link back to you and your credit history etc

Brie

Was it a pay day loan? Or just high interest?

This might help with a way to fight it - should that be wanted. Affordability refunds from loans · Debt Camel

And no, making a payment doesn't give anyone your address or even your name so the debt company shouldn't be able to trace you. Should anyone ever turn up on your doorstep the simple answer is "you can't come in, go away and stop harassing me or I will phone the police".

edited to add - your friend should find a way to discuss this with her other half, especially if it's likely to reoccur. it's possible that he can talk some sense into the lad about being financially responsible and how making these sorts of errors will effect him in the long term.

BungalowBel

I don't know whether it was a payday loan, or what sort it was.

She says her husband will just say he's a waste of space and that his daughters would never do that. They are not happily married. NB The 'lad' is 45!

I think I will tell I will pay it through my account.

ManyWays

Is she proposing to clear the whole loan or just the arrears?
If he has taken such an expensive the loan, this is probably because he could not manage the other debts he had, it is usually a mistake to try to help someone out unless you know their full situation.

It sounds hard, but she may be doing him more of a favour by suggesting he talks to Stepchange about his debts and looks at affordability complaints.

BungalowBel

She says he won't do it, won't keep to the arrangement even if he bothers to ring them. He is the sort of person who will use his money on what he wants first, then maybe he might pay a bill and be resentful doing so. He is a recovering alcoholic (although she thinks he is drinking again) and she thinks he gambles. He lives in a series of lodgings, but something always goes wrong and he ends up being kicked out. She is terrified he is going to end up homeless in a doorway. As a last resort he could come and live with her, but her husband wouldn't like it, so that would be an added problem.

She just wants the stress to her of this debt to go away. It's the one thing she can do something about.

She is proposing to clear the whole debt. If it's paid before March 4th, it's £320.

ManyWays

And the next debt? Paying a gambler's debts is a very bad idea; the sooner he gets defaults on his credit record, the sooner other lenders will stop lending him money to burn.

BungalowBel

Yes, I know. :( Just trying to stop this little bit of stress for my friend. I understand why she wants to pay it off.

BungalowBel

It seems that it is only possible to pay by phone. How do I get proof I have paid (other than on my Bank Statement)?