Guidelines for the writing off of debts

[mk_chatham]

Hi

I have been helping a family friend out with their debt problems over the last couple of months, unfortunately all are far too recent for UE.

They have written to all of the creditors asking for the debts to be written off due to their health conditions. A copy of the consultants letter was enclosed, along with proof of benefits (IS & DLA) and an I&E budget showing no income available to repay any debts.

Previously token payments of £1.00 per month per account had been made for sometime.

The majority of the creditors have agreed to this but some have not bothered to reply. I do remember reading somewhere that they have to reply to this request and give a written reason if they do not accept the proposal but cannot find the reference now.

Does anybody know where this is ? - I can't seem to find it in the OFT guidelines so maybe I dreamt it up.

Many thanks

MK

[BBoo]

Re: Guidelines for the writing off of debts

It's in the Lending Code, Section 9, Financial Hardship (page 28?????? off the top of my head).

[Never-In-Doubt]

Re: Guidelines for the writing off of debts

--> The Lending Code: Section 9: Financial Hardship - allaboutFORUMS

In this section

---> allaboutFORUMS

[BBoo]

Re: Guidelines for the writing off of debts

214. Where write-off is requested by a customer or adviser but is not considered appropriate by the subscriber, the
subscriber must give their reasons in writing. If the subscriber agrees to a write-off, then the debt may be registered as
a default with the credit reference agencies.

[mk_chatham]

Re: Guidelines for the writing off of debts

Thank you

I was wondering which section to ask this question in and thought this was the most appropriate one - and the answer was here all along.

I knew I had read it somewhere. So this applies to subscribers of the lending code and any DCA they may 'use' ?

MK

[BBoo]

Re: Guidelines for the writing off of debts

That is more difficult. The DCA's are not subscribed to the Lending Code. If the assignment is equitable (only the equity in the debt has been passed to them, so they're only trying to collect the money on behalf of the OC, then I would say as they are acting for the OC, they should abide by it, though they may disagree.

If it is an Assignment in Absolute (the debt has been sold with all its rights and duties) they are acting unilaterally, and I suspect can ignore the Lending Code. However, you could argue quite strongly that they bought the debt with its duties, one of which was to abide by the Lending Code.

TBH, even if it is a bank clearly subscribed to it, as the Lending Code is not statute, they will ignore it if they want to. I've accused many of only being subscribed to it so it looks good on their advertising.

Good luck and hope the above makes some sense!

[jon1965]

Re: Guidelines for the writing off of debts

So how often does it work and would it be worth me looking into it. However I guess I would only have the leverage when it was too late for the other options.....I have answered my own question I think

[Never-In-Doubt]

Re: Guidelines for the writing off of debts

I have answered my own question I think

Me too

[Spent2much]

Re: Guidelines for the writing off of debts

i might try this approach, i have suffered all my life with panic and anxiety , i just don't know which wy to turn , my hsuband is at work on his own today because i am too anxious about our debts and the business isn't doing well, my husband phoned the job centre plus and they were useless they said because he has no paid his NIC for over two years he cannot claim jsa , but might be able to claim jsa income related , he told us to go on the governement website and see if he qualified, he did the online assessment and it said he was entitled to £71 a week and no help with mortgage interest , as it is at the moment we get £87 working tax and a reduction in council tax , my parents have lent us £200 towards the mortgage these past few months , i dare not tell them the amount of debt we are in . It is stupid that the poxy dca get paid on time and before our mortgage it makes me sick all this .

[Never-In-Doubt]

Re: Guidelines for the writing off of debts

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