What will happen to these debts?

chevalier

I would also worry about you being financially linked to her as her debt is being dealt with at your house. It may be affected your credit score as well as hers.

Has she thought about going to CCCS or Payplan and doing a DMP?
chev

RAS

Hi

Based on what you are saying about the settlement rates being suggested, I think that you should get your mum to demand the Consumer Credit agreement for all these debts. If they are up for about 10%, then it is likely that the documentation does not exist and she would be able to stop paying, unless there is a CCJ on any of them.

Expect all hell to break loose as the DCAs try to panic her and you into paying before the 12+2 day deadline, but once that is past, she can stop paying anyone who has not produced the right documents.

Then she needs to reschedule the money that she has been paying to other creditors and start to cut down the debts that are left. If necessary, get her to go to see one of the debt charities. The only reason I do not suggest a DMP straight out, is that some of them seem to insist on paying all the debts, even if the CCA does not exist. If would be better let things settle down for a few months and see how it goes.

As long as you do not hold any accounts jointly with your mum, your own credit rating will be OK. You might want to get your credit checks done to make sure there is no association.

ltm07

Thanks for your kind words of advice. They have tried to panic her in the past & have even had the cheek to suggest that I pay her debts off on my CC! Not been too worried about the phone calls & letters in the past as i just tell them that she's not available to take her call & ask them to leave their number so that she can phone thm back & I also know exactly what letters are coming through the door. She isn't hiding away from paying them, just hiding away from paying out more to them & of course if they ever find out where she lives & that she no longer have a mortgage then they will more than likely want everything settling. OH & I have only been refused credit a couple of times in the past few years(that's the reason we are in this mess,but that's another story),so we know that we it hasn't affected our credit rating. Like you say RAS,it's probably better to let things lie for a few months. Your suggestion is probably worth looking into. I will have a word with her about it.

RAS

Consumer Credit Agreement letter if you need it. Has to be supplied or the debt is unenforceable.

So this is what you send, recorded delivery,tell mum to print her name. If they do not send the complete and proper documentation back with the time limits, she have to pay nothing.

Please do not sign it, just print her name. We have instances reported here when the returned sig was that of the person who sent the letter and not the putative debtor!

theThe Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

1. We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request; your obligation also extends to providing a statement of account. . We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

2. A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

We understand a copy of our credit agreement should be supplied within 12 working days.

3. You are notified that you are obliged to supply these documents, whether you are the original creditor or not under S189 of the CCA 1974.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully
Mr A N Other

The one pound is the statutory fee that you have to send to pay for the CCA. it must be sent registered mail or special delivery and check when it is received.

The DCA have 12 working days plus 2 to respond to you before they are in default. 30 days after that, you can tell them where to go, rather firmly.

ltm07

Thanks Ras,this isdefinately worth looking into. I will see my Mum tomorrow & go through it with her. All the best.

chappers

She really needs to speak to someone such as CCCS and whilst I think she should come clean with your Dad she may not have to.Your idea of paying the money you owe her into a DMP is an excellent one.
Really she needs to come clean to your Dad perhaps with your support and they need to face this together, it's only amatter of time until someone comes knocking on her door and he will find out anyway.

ltm07

Have taken what you said on board Ras but don't think that we could do with the hassle of trying to take on the big banks from our address,as this may not do us any favours if we ever need credit again(not that we ever want credit again but there may be a time when we have no choice). She is paying an extra £2 a month to the creditors who wanted her income/expenditure details & they will review it again in six months,so whilst £2 a month isn't alot,it's still £24 extra a year on what she's now paying,so the debt will go down much quicker over a few years.I will be opening every letter & noting down how much she owes on each debt & how long they will take to pay off at the current rate she is paying & then sit down & talk with her to sort it out once & for all. Thanks again for your advice & i will keep you posted once i have all th details of all her debts.