Problem with Morgan Stanley Harrassment

fruityslh

Apologies if this is in the wrong forum

My mum has just called me in floods of tears about Morgan Stanley harassing her for money

The story is that 3 1/2 years ago my mums back gave way and over the past 3 1/2 years has tried surgery and everything to get it to improve, unfortuantely she is what the doctors call a hopeless case and is now permanently disabled.


She did have payment protection on her credit card and the insurance comnpany have now paid up the outstanding balance. However, Morgan Stanley are now stating that there is £1200 in interest accrued on the account (I assume in the last 3 1/2 years) that must be paid.

My mum has no hope of ever working again and is living an existence on very little money and therefore has no chance of ever paying the £1200. When she first start receiving the calls I referred her to the CAB, who took a list of incomings and outgoings and wrote a letter to Morgan Stanley offering a token payment of £2 a month(which in my opinion she can't really afford) however they have literally ignored that, as I rang them tonight (pretended to be my mum) and they acknowledged they received the budget but no offer of payment from the CAB (they are on the same letter) I also told them that they are not to ring again and everything should be sent in writing. The woman on the phone said she would put a note on the account saying not to ring for two weeks until they had received something from her in writing, it is now 2 hours later and they have just rung again.

I'm sorry but I am so angry with these people, they are really getting to my mum, she is not eating, fearful of answering the phone, anxious every time I speak to her and tearful.

The CAB bloke says they are only doing this to try and get her to commit to a higher payment, but I am disgusted at the way they are going about it - she has no money, what do they want?

I have offered to help my mum out by dealing with them, so at least she is feeling more relieved and a bit happier, but the question is

What can I do? are Morgan Stanley allowed to do this? does anyone know of a way to deal with them??

Sorry this is long but I really need some help

Thanks

mark_jones13

There really is no way to deal with them without paying them. They can keep on calling you again and again until they get payment. Really sorry to be the one to tell you this but I worked in collections last summer in the break from uni and I know the ins and outs of it all. You need to make higher payments or they will keep on calling until eventually they may take court proceedings. But to be honest that may be the best thing for your Mum because the courts would only make her pay what she could afford and then Morgan Stanley would have to accept this. They have no obligation whatsoever to accept reduced payments proposed by the CAB or the CCCS. Sorry again to be the bearer of bad news.

Richie(UK)

Hi fruity,

Does you mum's 'phone have caller ID capability (this service can now be obtained free from BT)?

If not, have you tried calling BT to see if they will block that particular number for you?

Neither of these are ideal but may offer some temporary respite.

I would make a complaint, in writing, to Morgan Stanley. Enclose a copy of the previous CAB letter if possible.

Who sold the insurance? Was it Morgan Stanley? If so, I would consider asking for the interest to be waived (hell, ask for it to be waived anyway ). You could always suggest that the interest write-off will cost a lot less than the negative publicity for them if this story were to reach the press or a programme such as Watchdog (you might want to hold this one in reserve to see how they respond to the initial letter).

Good luck.

digp

i suggest you visit https://www.debthelpuk.co.uk/forum - M/S are arguably breaking the law!

fruityslh

Thanks for your responses

Mark/Charles J - My mum would pay if she had any money, problem is she doesn't have any, she didn't choose to live on disability - it happened and as she had payment protection, thought it was covered

Richie - Mum's with Telewest, but I have suggested that she calls to see if the number can be blocked, she's going to try

It is my intention to write a letter of complaint to Morgan Stanley asking them to look at the situation again and ask if the interest can be written off, due to the circumstances, but I'm not gonna hold my breath.

DigP, thanks for th link I'll register and look at in more detail tomorrow, hopefully I can find something I can use as leverage with MS

Thanks all

Fruity

omega27

I'd imagine that Payment Protection has changed over the past few years, but if you look at the current policy http://www.msdwcard.com/uk/data/card/protect_payment.html it states:

Significant Features and Benefits

If you are unable to work for more than 30 consecutive days (the waiting period), we will pay 3% of the outstanding balance on your Card at the date of your claim each month, up to a maximum of £1,000 per month, provided that you continue to pay your monthly premiums.
We will continue to pay a further benefit for each day you are unable to work up to a maximum of 12 monthly payments for involuntary unemployment or, in the case of an accident or sickness, until the debt outstanding on your Card as at the start of your accident or sickness claim has been repaid. [BOLD]We will not pay benefits for debts (including accrued interest) incurred after the start of your claim.[BOLD]

It seems that Morgan Stanley are right if the terms of your Mum's policy are similar, and it just proves what a complete rip-off the Payment Protection offered is :-(

MarkyMarkD

The payment protection does what it's meant to do - it meets your minimum payments (and sometimes something more than that) during the time you are ill/unemployed/whatever.

What it's not meant to do, and doesn't do, is pay off the debt. Making minimum payments does very little to reduce the outstanding balance on your account, and you would end your period of claim with a similar balance to that at the start of the claim.

But again, that's what is meant to happen - it's not meant to wipe the slate clean. So it doesn't work if you need to claim for longer than the eligibility period.

It's a bad situation to be in, but it's not an inherent failing of the payment protection IMHO. I'm sorry for her situation.

You can buy standalone payment protection policies which pay out for longer, and/or cost less, than those offered by card companies.

fruityslh

Thanks for all your responses, some very useful advice, I've now managed to tactfully tell my mum that she is liable for the deby irrespective of what happened with the Card Protection and that she must make some form of offer, so I am going to write on her behalf to MS and again offer £2 a month or alternatively I will make a full & final payment of £100 (ok I know it's not much but it's all I have to give, my mum has no chance of getting hold of this amount of money without accruing debt through dubious means and then we'd be off on the merry go round again, it will also take 4 years of £2 a month payments to make £100)

I'm going to ask for the interest and charges to be frozen (my mum has sent hand-written letters asking for this but they have been ignored and my mum never kept copies so they are inadmissable)

I will also quote the excellent advice from Ian with regards the justice act, in my opinion they have been harrassing and we would have a case to take forward. My mum is now going to log everytime that MS ring.

Thanks again for your responses, believe me if my mum could pay she would, she absolutely hates this situation that she's in.

Fruity

Xbigman

This sort of thing happens all the time. There are several threads on the debt free board about it.

You have sent a budget (prepared by CAB) and made an offer. This is the right thing to do. Now pay them what you have offered (£2 a month) whether they accept or not. If they take her to court this will stand in her favour and (as already said) going to court will pretty much settle it.

Phone wise. If she is that short of money then she should cancel her current phone contract and get a pre pay mobile, and don't give the number out except to friends and relatives.
Regards


X

digp

mark_jones13 wrote:

There really is no way to deal with them without paying them. They can keep on calling you again and again until they get payment. Really sorry to be the one to tell you this but I worked in collections last summer in the break from uni and I know the ins and outs of it all. You need to make higher payments or they will keep on calling until eventually they may take court proceedings. But to be honest that may be the best thing for your Mum because the courts would only make her pay what she could afford and then Morgan Stanley would have to accept this. They have no obligation whatsoever to accept reduced payments proposed by the CAB or the CCCS. Sorry again to be the bearer of bad news.

I hate to burst your bubble, but that is complete and utter twaddle.

digp

Try an email to JohnDOTMackATmorganstanleyDOTcom he is their global CEO! (replace AT with @ etc.)