First time poster in need of general advice

[debtbydivorce]

First time poster here so I'm sorry if I'm not supplying the right information. Please let me know and I will add anything I can. For the record I'm posting on behalf of my mother as she's struggling to deal with her debts at the moment.

So, for a little backstory... In 2006 my father left my mother. He was/is an alcoholic so ran up some credit card debts but as part of the divorce mum got the house and ALL the debts.
Dad was meant to pay maintenance for his children but only did for six months and then skipped town to Africa. During these 6 months mum got a consolidation loan from Barclays. Soon after Dad's payments stopped Mum defaulted on the loan and she has been in a DMP paying £1 since about 2007.

Since 2007 she's been paying off what she can but has been in a DMP with:
- M&S (credit card) £8,000
- Barclays (loan) £14,500

The problem is that the debts are having a massive effect of her mental and physical health. they've cause depression, anxiety and digestive problem all recognised by the GP.

In the last few months I have written to both M&S and Barclays about her situation. M&S actually agree to write off all of the remaining balance on grounds that it would be unethical to pursue it.

Barclays however have been horrible. After weeks on the phone they finally put us in touch with a specialist team who asked from proof of her illnesses to which we sent a letter from the GP detailing the conditions above and a budget which shows she cannot ever pay off the debt on her current salary. They declined to write it off and asked second time for proof of illness and fobbed us off some more.

Since then I've phoned them asking to reconsider with an offer of £500 against the £14,500 debt which is know is not a lot but it is old debt and it's making her very sick. I assumed Barclays would have similar compassion to M&S but they seem not to want to budge. I have not heard back about their decision but I will assume that it will be a no this time. (I will keep you updated!)

This week I have also sent of a CAA request with £1 to Barclays to see if it's enforceable.

For transparency she does have a few other credit cards (2 santander £450+£450) (1 barclaycard £2500) but these are all up to date and we're trying to get them down. It's just the large barclays loan that I need to help with. Do you have any advice on what we should do?

She simply isn't in a position to just pay it off.

She owns her house (with an 80k mortgage still on it) and no real assets.

Many thanks for all your help!

[The Tech Clerk]

Diana Mayhew

[nightwatch]

Hiya, the problem with barclays is they will have checked her credit file and seen that she is up to date and paying the Santander card and is also up to date with the other barclays one,
when did she take out the Credit card with Barclays?
can I ask who she banks with?

[debtbydivorce]

Thanks for your reply!
I was completely unaware that they were able to do that but maybe it's obvious.
The credit card with Barclays was opened in 02/2008 but has no defaults listed on the credit file and is up to date (although maxed out).

She currently banks with Natwest but did previously bank with Barclays until she was advised to changed back in the earlier 2010s

[nightwatch]

who ever told her to change banks was correct, banks have what is called a right of set off
this means that if you get into difficulty paying,an account with the bank you have your main account with, they can and, have been known to take money from the account to service the debt owing to them,

Please do not speak to them on the phone , unless you can record the conversation, in future all correspondence is to be in writing (snail mail) this gives you a paper trail and written proof, of when and what you are sending and receiving.

you have sent for a CCA, so lets wait and see what comes back from that, Barclays may try and sell it on to a debt company, this means that a company buy's the debt for pennies in the pound and, Barclays can write off the debt as a tax loss, so they save some money on it,
if that happens we can see what we can do with the debt company,

we will cross that bridge when we come to it,

try and enjoy the rest of the weekend

NW xx

[debtbydivorce]

Thanks so much for your reply! I will only communicate from now on via mail!

[Joanna Connolly Solicitors]

as part of the divorce mum got the house and ALL the debts.

. . . . mum got a consolidation loan from Barclays. Soon after Dad's payments stopped Mum defaulted on the loan and she has been in a DMP paying £1 since about 2007.

Hello

Do you know if this Barclays consolidation loan included any debts your father had with Barclays?

You've sent a s 77-79 CCA Request so see whether they can comply with that before making any more offers to pay them. If the debt is unenforceable (which could be for reasons other than the credit agreement) then they may be more inclined to accept a deal. Or ideally assign (sell) it to a debt purchaser.

Was there any PPI on this loan?

Is the house and the mortgage in your mother's sole name or still in joint names despite the divorce arrangement (was it a court Order?)?

Di

[Warwick65]

Hi

I can't offer any further advice on the debts, others have made great suggestions. I do however know a bit about stress anxiety and gastrointestinal problems due to debt and anxiety. The problem can be that many of the drugs given to treat anxiety and depression can cause other problems but I was referred to a consultant Gastroenterolist who suggested a low FODMAPS diet- all I can say is it was almost miraculous and has helped with other psychological problems as well.

[debtbydivorce]

Thank you for all of your suggestions. We actually have the credit agreement to hand (mother is a good organiser). It says PPI: N/A. The consolidation loan didn't include my father's debts - well not accounts with his name on. He didn't have good credit so mum took out credit cards etc in her name but he spent on them. Financial abuse really. The house mortgage is fully in her name as the courts ordered him to sign it over to her in the divorce.

The Barclays debt is from 2011 - is it likely they will sell it to a debt purchaser? I can see from paperwork it has already been sold to Resolve Call (April 2012) and Chelmer Collections (June 2012) but appears to be back with barclays and has done for a while (August 2012).

I hope that helps!

[nightwatch]

Morning,

You may have the original credit agreement, it does not mean that barclays has one, let's see what comes back from them,, you never tell them you have the original paperwork.

A few people have had original agreements, sent for a CCA, got something totaly different back in reply. Or nothing at all,
NW x

[Joanna Connolly Solicitors]

The Barclays debt is from 2011 - is it likely they will sell it to a debt purchaser? I can see from paperwork it has already been sold to Resolve Call (April 2012) and Chelmer Collections (June 2012) but appears to be back with barclays and has done for a while (August 2012).

I don't have a crystal ball but it's likely that Barclays will assign the account to a debt purchaser once they see it as delinquent i.e. no payments coming in. Is your Mum still paying via a DMP?

Resolve Call and Chelmer Collections are debt collectors both acting as agents for Barclays. The debt was not assigned (sold) to them which is why it remains with Barclays.

Can you clarify if the account was opened in 2007 or 2011? My apologies for not understanding your first post.

Di

[debtbydivorce]

My apologies for the confusion! I thought the account was 2007 but I have gathered all of the paperwork and it was taken out in 2011. My mistake. She has been paying a token payment of £1 per month to Barclays since 2012, which was set up by stepchange back then. I think there is no official DMP in place and we certainly have no contact with any intermediary establishments, just Barclays directly.

Once again thank you all so much for your input

[debtbydivorce]

Hello everybody. I have received a credit agreement back from when the loan was taken out in 2011. Is there anything I should be looking for? Nothing is signed. Thanks very much.

[The Tech Clerk]

send it as it is to webmaster@all-about-debt.co.uk linking to this thread

[Warwick65]

Hello everybody. I have received a credit agreement back from when the loan was taken out in 2011. Is there anything I should be looking for? Nothing is signed. Thanks very much.

They do not need to provide a signed copy but it helps their case if they can show you had the account. Signed copies can have tick boxes as signatures especially from that time

Much more to enforceability that just agreements though