I would like to ask for some advice.
With CAG's help I have been trying to sort out my mum's finance situation recently
today she sent me a copy of a Litigation Warning letter from Midas Credit Services that she received.
I told her to ignore it as it uses terms like "possible further action" etc etc.
The reason for the letter is that my mum has apparently failed to reach a repayment agreement with Moorcroft Debt Recovery;
however my mum had a payment plan in place with Lloyds for £1 a month with a paying in book.
This was arranged after months of threats and harrassment by Lloyds prompted her to go to the CAB where a very knowledgeable man helped her sort out a new bank account and got Lloyds to stop adding interest to the amount.
She took the loan out over the phone in 2006 and was told she would only be accepted if she took out PPI as well.
The repayments were over £200 a month but 3 months later she lost her job, the insurance paid out for 1 month after which she turned 65 and was told the insurance no longer covered her!! (This alone makes me pretty angry )
My mum continued paying the installments, INCLUDING the PPI premium, for X amount of months until she rang them and asked if the PPI amount could be deducted off what she owed.
I assume they then cancelled the PPI.
After a few years of payments my mum then owed MORE than the original amount. ;
She was also advised to take out a Gold(?) account with Lloyds as she would be able to get a credit card.
She is currently in debt to Lloyds with all 3,
2 are with Apex Credit Management (she is paying a set amount off per month) and
the loan is with Moorcroft.
Moorcroft rang her after acquiring the debt and said £1 a month wasn't enough and that she should pay more..
she went to CAB and unfortunately the first man had transferred to another branch so she's been dealing with a less clued-up guy that she has to chase all the time.
He sent Moorcroft a letter saying all correspondence should be through CAB and offering £10 a month payments.
My mum told Moorcroft that she would only deal with them through CAB but they wrote to her saying they've had no letters from CAB and they want their money!
Sorry for the long essay but I'm trying to get all the details in (to the best of my knowledge) to avoid confusion.
So here are my questions:
1. Can Moorcroft demand extra payments and if not is there a complaints procedure regarding this?
2. Is it worth requesting a CCA, my mum is not disputing the debt but we really have no idea how much she's paid off and whether any fees have been added by Moorcroft or Lloyds
3. PPI complaints;
I think it's worth doing this as she was blatantly mis-sold this, especially as it didn't cover her only 5 months into the start date!!
However will requesting a CCA interfere with this, should one be sent in before the other?
4. Can previous interest accrued on the loan be written off as well as fees?
If we get the PPI refunded and work out that my mum has made payments totalling, say, half the original amount, would it be fair to say she will only pay off the remaining half and not the interest too?
My mum thinks that the debt was sold on because she missed a couple of payments and then paid twice the amount the following month.
She was told afterwards that this only proved to them that she could afford to make bigger payments
I have been with Lloyds TSB since I was born; my mum opened a savings account for me and my brother and I stayed with them ever since but after the way they've treated my mum I've moved to Santander .
I would really appreciate any help on this!