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Retired and still owe amount on loan: Advice Needed


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Hi,

 

My mother has just retired and i have found out she has an outstanding loan which she was hoping to pay off from her pension. Unfortunately her pension is not even worth it and she has just gone on benefits.

 

Does anyone have any advice as to how I could either look to get the balance written off as she has no income any more. The loan is with Halifax. This is beginning to cause her stress which I would like to avoid getting any worse.

 

Thank you!

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To be able to advise we will need a little more info eg, What type of loan ,how much is it for,

is it in rrears, what is the monthly payment?

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OK how much is outstanding and what are the payments set at?

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The loan balance is approx £10K taken from Halifax and she is currently paying £500 a month but just can not afford to keep these payments up. Off the top of my head I think she still has approx 24 more months left on the loan. This was taken out as a normal loan.

 

Thank you for your help!

 

Hold old is the loan & was there any PPI included + has she had any unfair charges?
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Is she on state pension alone, it may be they will accept lower payments and an extended loan period, is the loan

secured against property?

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Yes she's on a state pension and currently having housing benefit paid as well. She had a conversation with the bank a few weeks bank advising them of her status and trying to see if she could get payments restructured and reduced but they seem to have been quite stern with her and informed that she will need to pay the loan or else they will get debt collectors out to her.

 

The loan is an unsecured loan and she doesn't own any property.

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If they have made that kind of statement you need to report it to the Office of Fair Trading as

they are failing to treat her properly and consider her circumstances and there may be a consideration

of careless lending in consideration of age and future income.

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Are there any templates you think I can use to bring this to both the banks and the OFT's attention. Because this was via telephone conversation I am wary of how they may defend themselves.

 

Would you advice I write to them first asking for them to restructure loan payments based on her retiring, lack of income and see what their response is?

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Yes a formal request to restructure shows a willing to continue payments.

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Do you propose I also include an income and expenditure statement when I send this....or not at this stage?

 

I can draft a letter and share it to get your comments before I send this out, if there are no templates you are aware of that I can use.

 

Thanks,

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No only the court can require you to disclose this information, if it gets that far.

the problem as I see it is there are approx 2 years more at £5oo per month £12.000 is not

going to go away easily, going to be rude now how old is mum?

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The reason for asking is that I have seen one case when retirement income was in sufficient to meet obligations

it was suggested that a return to employment was a solution I guess based on the later ages of retirement

brought in by the last government.

Is mum on state pension only and what would she consider her disposable income to be?

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It is a very delicate situation for you I know, the possibility is if the repayment are totally

beyond her finances if mum owns the property in which she lives the creditor could apply for

a charging order on the property.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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