Friend in a mess, HELP?

[coffeesupper]

I recently joined and with help from here have started the process of dealing with my finances, debts etc......anyway.......

 

Mentioned to my friend about this site & she has given me these details hasn't told any1, she was embarressed. She has ignored letters but realises in her stressfull condition she must do something (she is expecting, in May) about to become a single parent.

 

I hope some of u good folk can guide her (via me) through the mess she is in with Lloydtsb, i have all her letters now, she knows things can't get any worse and a problem shared is a problem halved.

 

She got a phone contract, had a Direct Debit set up from her Lloydtsb account to pay it, whilest she was working it got paid regular, monthly, she didn't realise that with the contract she got 3 months free phone insurance at £5.99, turns out you had to cancel it, she called to cancel after she noticed it, and was told it would be cancelled. She lost her job and inclusive accomodation, still had the contract, but no way of paying, so eventually the contract got cancelled. The bank account was then not used.

 

Trouble is the £5.99 insurance a month was still an active Direct debit, her post still went to old work accomodation and she didn't get her post for a few months. The active DD was still being requested, and L-tsb paid it upon each request. They'd sent her a letter, saying they had made the payments so the account had now gone overdrawn, she had no money at all going into the account. Because the bank paid out the £5.99 and made her overdrawn they of course were now going to charge her.

 

So this went on for a while, without her seeing the statements/letters, the insurance had not been cancelled.

 

When she did get her post she didn't contact the bank, and still didn't realise the insurance was causing all the charges to mount up. She didn't ring the bank. So i have now looked through her paperwork. the letters from the bank now tell her the charges and as it stands (last statement) they say she owes the bank £637.51, the Jan statement said £468.15, and the new amount is dated begining of March, so you can see how this is mounting up. She is on benefits, no permenant fixed abode (yet) and in a mess. Last letter is from Sechiari,Clark & Mitchell solicitors, giving her 7 days to pay, or court issues may be issued against her.

 

As you can see she desperately needs some help, would appriciate any advice, thankyou.

[elsinore]

Hi coffeesupper.

 

Your friend is fortunate to have you helping her.

 

What is the date of SC&M's letter?

 

Is your friend still using the account?

 

Els

[coffeesupper]

Hello, thanks for replying, her account is still open (she thinks) although not been used since Aug 2007 when she lost her job and stopped getting wages paid in. The letter from SC&M is dated 4th March 2008

 

I have debts of my own but she really needs to get something done, i know how it 'eats' away at you and she has enough on her plate, she's only 20 and got her-self into a mess!

 

Thanks.

[coffeesupper]

Just to 'bump' this thread up, can anyone advise on what she should do next? i will be seeing her over the easter weekend and hope i can give her some info of some sort.

 

Thanks.

[sillygirl1]

Try and go to the local CAB, as she is clearly 'in a vulnerable position' they may be able to do a great deal - including helping her find more permanent accommodation.

 

If she is receiving benefits there is a 'right of approbation' that can be used to stop the bank clocking up their charges first and leave her with some money to live on. The CAB should be able to help out here.

[coffeesupper]

Thanks for replying, i agree it would help her to go and sit and talk to someone, who she can authorise to act on her behalf as she feels unable to communicate direct with the bank herself (an old school friend works thier & she is embarresed about her whole situation). I don't live in the same town so am limited as to what i can do, she is about to be rehoused with a housing place in the next few weeks, at the mo she has a room in a friends house. her benefit is paid by giro, so nothing since she stopped working is getting paid into the account.

[PriorityOne]

 

When she did get her post she didn't contact the bank, and still didn't realise the insurance was causing all the charges to mount up. She didn't ring the bank. So i have now looked through her paperwork. the letters from the bank now tell her the charges and as it stands (last statement) they say she owes the bank £637.51, the Jan statement said £468.15, and the new amount is dated begining of March, so you can see how this is mounting up. She is on benefits, no permenant fixed abode (yet) and in a mess. Last letter is from Sechiari,Clark & Mitchell solicitors, giving her 7 days to pay, or court issues may be issued against her.

 

 

Has the insurance been cancelled now ?

 

Does she have details of all the charges that have been levied over the months ? If so, add them up and deduct them from the balance they say is outstanding. Then post back on here with the remaining amount.

 

If not, then she needs to send a SAR by rec. delivery to the bank and a letter to the sols. advising them of this. We can direct you to the template letter for the SAR, so don't worry about this.