Debt written off due to Carers Allowance?

[davey77]

I am 28,000-30,000 in Debt on Credit cards and loans. First wrote to my creditors in Oct 2006 offering £5 a month until i had found work etc. Two of them have agreed and frozen interest and charges. Others, like MBNA, Cahoot and Barclays are still being difficult and obstructive.

 

My situation has changed. I now have carers allowance and income support. My retired Mum, who lives with me in a joint tenancy, gets attendance allowance etc. Housing benefit will pay 100% of the rent + council tax.

 

My question is: Can i write to all my creditors asking them to write off the debt in view in the slim chance of me gaining a well paid job in the near future. Mum's health is not likely to improve (she's 70). I know i would have defaults for 6 yrs but i'm going to have them anyway even if i do get a good job as it will take yrs to pay it off and have them removed.

 

The downside perhaps is wanting to rent somewhere else as estate agents all seem to do a credit check. But again, i have some defaults already, so that wouldn't make any difference except for the fact of knowing that they will be gone in 6 yrs.

 

am i looking at this too simply? are there aspects i haven't considered?

 

Thanks, David

[davey77]

Thanks for the input! I have been doing some research and there instances where debt has been written off due to personal circumstances and the obvious impossibility of creditors ever getting back the monies owed.

 

I think Bankruptcy really must be the last resort and i'm not sure i ahve reached that point as yet. (Still some fight left in me!) Also i have no assests to liquidate. No home, a 14 yr old car and no savings.

I have sent all an income and expediture sheet which should be ammended due to the benefits coming in but even then doesn't leave any extra.

 

DMP was the way i wanted to go but without anything left over each month i have nothing to offer a DMP. I'm not reclaiming charges as from day one i haven't paid anything towards my debts. (Apart from a £1 a month token payments to a couple of lenders the last 2 months.)

 

Think i'll draft a letter asking for the debt to be written off (with a great deal of care in my choice of wording) and post it here. Watch this space!

[davey77]

I was wondering does anyone know what the law is regarding the liability of someone else to contribute to payment your own debts? I mean, a spouse can be asked to help repay can't they but what about a parent? In my case, my mother living in a joint tenancy although the debts are in my name can a creditor (for bunkrupty or before that stage) ask for my Mother's assests or income to be taken into account in repaying a debt?

 

I am composing my letter (writing off the debt) and am stating i have nothing to liquidate and no assests but want to make sure the creditors can't turn round and say well, your mum bought the tv and you both watch it so sell that, kind of thing.

[davey77]

Thanks Cornucopia. I rang National Debtline when i first started out on this rocky road and there are certainly very friendly and helpful. Perhaps i will ring again now my situation has changed.

I couldn't find the letter in the templates library re write off debts. I'll keep looking though.

I'm having trouble getting my head round this claiming charges business but i'll sit down and go through it in more detail here when i have a free moment. From what i read so far i didn't believe i was entitled to claim back anything as i paid my monthly credit card bills on time and when i realised i wasn't going to be able to keep up payments i wrote to them all and told them just that and from that day on i haven't paid anything. I haven't got any money lol Yes they have lumped on interest and charges to my statements but i have never paid anything towards them and don't intend to either.. so think i am right in beleiving there is nothing for me to claim back. I'll do some more reading though...

[davey77]

This is how the letter has come along so far. Any suggestions or thoughts gratefully recieved!

 

Dear Sir/Madam,

 

Thank you for your recent letter regarding the intention to serve a Default Notice if your payment request is not complied with.

 

It has always been my sincerest intention to repay the debts I owe to all my creditors and I have communicated to that effect very clearly in my correspondence. You have received my income/expenditure statement last year that showing at that time zero disposable income and also debts totalling over £28,000.

 

For some time I have been trying to gain a consistent income working from home as you know: The financial markets, Ebay and various enterprises have all been very unsuccessful. Full-time employment outside of the home was something I had hoped would materialise and be made possible but due to my Mother’s bad health my enthusiastic ideas for becoming financially secure this year seem very unattainable. Perhaps more hopeful rather than practical.

 

To this end I find myself now in receipt of housing benefit which pays 100% of the rent in this bungalow with a joint tenancy with my 70 year old Mother and also receiving Carers Allowance (as her carer), Council Tax Benefit and with an application for Income Support in the post.

 

With her age in mind and her many ongoing medical problems which have plagued her for many years which only ever seem to worsen over time and not improve and with her long term care becoming more inevitable I am at a loss to know how I will be able to make enough money through working to pay everyday living expenses and give her the support she needs at the same time. I am certainly loathe to try (and have no funds for) any home based business opportunity that would enable me to have both a high income and to be a carer at the same time considering my past failures in this area. So therefore must resign myself to fulfilling one of those objectives only and of course my Mother’s well-being and care comes first. She looked after me so it’s my duty to do the same for her as there is know one else who can.

 

I have enclosed with this letter a more up-to-date financial statement which takes into account all the Benefits I receive and anticipate receiving shortly. (Namely Income Support.) As you will note there is nothing left over to offer any of my creditors. I do not anticipate this will change in the short or long term.

 

IVA’s, DMP’s and Bankruptcy are for those with money left over after priority debts, of which i have none, and can be a costly undertaking for both parties. I have no assets as this is a rented property.

 

My car, which is not a brand new £30,000 model, is 14 years old and as my Mother has no licence I use to take her for hospital and GP appointments etc. The last few months I have sold many household items that were mine to sell but it didn’t stop last months rent cheque bouncing. Anything left are not my assets but my Mothers as I do not buy furniture, kitchen appliances etc. That’s not my dept. And so I personally have no goods of significant value. (Unless 4 Primark shirts and a pair of boots are considered otherwise.)

 

The conclusion to all this is that for the foreseeable future my financial position is highly unlikely to change for the better. In no way do I consider this an easy option for me but my only viable recourse is to ask that you write off in full the balance owed on my account/s. I realise this will mean a Default Notice on my credit file for 6 years and ask that it be marked ‘settled’ or ‘satisfied’ with the Credit Reference Agencies. (If you do not agree to my request then based on my current and and long term prospects I can only continue to ask you to freeze Interest and charges indefinitely.)

 

Of course, you cannot take my word entirely regarding my circumstances and am able if you request it to forward copies of the Benefit entitlement letters as and when i receive them.

Although I feel I cannot go into my Mother’s medical conditions in detail as I regard that as a private matter the fact I receive Carers Allowance and am exempt in seeking employment in itself is proof of her need for care and my responsibility to provide that care and support.

 

Given my very difficult circumstances I ask that you give my request serious and sympathetic consideration as this course of action would greatly relieve the anxiety and distress that the simple existence of these debts are causing, especially as I cannot foresee a time when I will ever be in a position to pay.

 

Yours sincerely, ** ****

 

CC:

 

Barclays

Cahoot

Halifax

MBNA

RBS Mint

Capitol One

 

[davey77]

Thanks guys (and sorry for not replying sooner). I have sent the modified and shrortened version off to all creditors but to date have no reply. Apart from the usual automated letters etc and another default for my collection. I will give them a little longer then write again this time by recorded delivery to make sure i get a personal response. I'll keep everybody posted on future developements. Cheers!

[davey77]

Hi - i find telephoning for even the simplist of requests to be the road to knowhere but i will do that if they don't respond soon. Generally they say they can't help and suggest getting a loan to pay them all back!?

Unfortunately i can't discuss all this with mum as she is unaware of all my debts. She's 71 and not in great health and tends to worry. A letter from Barclays just now says that as they have "written repeatedly re the amount due on the account which remains unpaid and require immediate payment". Also one from Barclays, "The account is still overdue and we now have no alternative but to pass your account to a local debt collector. We would prefer not to take this action and we are confident that between us we can resolve this matter, Please make a payment etc etc"

It's THEY who have ignored ME and all my requests the last 3 months but they imply i have not writen or informed them of my situation. I am writing a more update financial statement this morning to include all the benefits i now recieve: carers allowance, income support, council tax benefit and housing benefit (which still falls short of my outgoings) along with another bunch of letters asking for the debt to be written off.

[davey77]

In the end what i sent them was this:

 

On another matter and my main reason for writing I have included with this letter a more up-to-date Financial Statement from the last one you will have received and it clearly shows my income, expenditure and level of debt i owe.

 

The prospects of gaining the kind of income needed to be able to repay all my creditors is hopeless due to my mother’s continuing ill health. As I may have informed you previously I am on Carer’s Allowance and care for her long term. I had hoped matters would improve but I’m afraid it was a false hope.

 

I would be very grateful if you would consider writing off the outstanding debt owing. I have always taken very seriously my financial responsibilities and have always had the best intentions and hope for future prospects but unfortunately my circumstances are so bad that I cannot realistically repay any of my creditors and have sent a similar letter as this one to all concerned.

 

As you can see from my Financial Statement my finances are stretched to breaking point and are very unlikely to improve in the long term and my continued high debt level may have a serious effect on my physical and mental well-being as well as my mother who is 71 next month. I would therefore be grateful if you would seriously consider my request for the debt to be written off.

 

I would appreciate a personal reply and your understanding in this matter.

[davey77]

First reply back. From Cahoot:

 

Dear Mr x,

Thank you for your letter the details of which have been noted on your account.

 

I have tried unsuccessfully to contact you by telephone today to discuss your letter and provide advice towards rectifying your concerns.

 

Whilst i fully apreciate the situation that you are currently in, i must advise you that we are unable to freeze interest and charges without an arrangement in place and we would not be able to write off the debt as you requested in your letter.

 

Please contact myself on 0845 ... ... at your earliest convenience so that we can update our records accordingly

 

Yours sincerely, K Miller

 

Update their records?! I know what that means. They can't get through because i changed my telephone number. I rang them at the start of this in Nov and the woman was totally unhelpful and wouldn't accept £5 a month (she wanted £40 and no less) and suggested I get a loan to repay them!

So i have to call them just so they can tell me there is nothing they can do to help? That's not going to happen.

[davey77]

Thanks for that! Yes all true what you say and I will follow your sound advice. Here's my reply to Cahoot: (with cerfiticate of posting for sure!)

 

Dear Sir/Madam,

Thank you for your letter received 19th Feb 2007.

 

I am disappointed you feel you are unable to give any serious consideration to my request to write off the debt owed despite having all the necessary facts regarding my financial and personal circumstances in your possession.

 

My initial contact with Cahoot via the telephone was completely unhelpful and my offer of an arrangement in the form of £5 a month was refused flatly after being informed £40 a month was the minimum required even though i stated my income was zero at that time. The suggestion I take out a loan to pay off the debt was also unhelpful and wholly inappropriate.

 

As i have stated on numerous occasions i do not discuss my debt situation over the telephone and given my experience outlined above has only galvanised that belief and for me to call Cahoot just so you can ‘update your records’ seems pointless considering you have all the facts needed to reach a final decision regarding this matter.

 

As you are aware Capitol One, Mint and now MBNA have frozen interest and charges and I await their reply regarding my request to write off my remaining debts.

I will as always keep you informed via letter should the response from my other creditors be favourable or my circumstances change (which is highly unlikely).

 

I am also giving serious consideration into the possibility of Bankruptcy as a means to resolve my long term and extremely difficult financial situation permanently as with each passing week, and letter received asking for payment, i am forced to consider any alternative solutions.

 

In the mean time i respectfully ask you review you current stance in relation to my request to write off the debt owed.

 

 

 

Yours sincerely, me

[davey77]

Cheers Cornucopia.. yes, i will wiggle that about a bit and amend it. Interesting to see what their reply will be.....

[davey77]

Thanks for the kind words and support Cornucopia. Well, mum has already had a few financial revelations from me the last year and i really couldn't heap another one on her. It's still my hope to sort this mess out so she is none the wiser (or worried.) I certainly don't feel the pressure i used to about all this as i once did.

It's true. Nothing lasts forever and there is light at the end of the tunnel (i can see it with my binoculars lol)

 

Only reply to date is from Cahoot again this morning saying they are "..disappointed that i have not responded to their previous correspondence... pay in full... agents seeking recovery...please call etc etc"

 

Trying to put pressure on me there but the date on the letter is the same day i replied to them and as yet no others have replied yet so i'll give it a little longer and see what i get back.

[davey77]

Hi there - well, very interesting about the CCA for sure, thanks. I will certainly go down that route and have in the mean time been waiting for any replies to my request. First one arrived this morning from Capital One:

 

"Thank you for your recent letter telling us of your current situation. We would like to help you with your account. Please send us within 28 days either:

Proof of DLA/Incap/Carers Benefit.

If you have any queries please call etc etc

 

Well, that's a better reply than i thought it would be. The others are sure taking there time to get back to me. I will give it the rest of the week and then write again to all creditors, by recorded delivery and with the a CCA request.

[davey77]

Hey there - Well, not much new news really. CCA requests were sent out a bit late but all in the pipeline now. Still waiting for the reply from Capitol one after sending benefit proof. A reply from Barclays and two in a couple of days from MBNA. 1 reply from MINT..

 

BARCLAYS: Can you please contact Anthony Cassidy as a matter of urgency to discuss your recent correspondence to us as we have no valid telephone number for you, Chris Gates - Collections Manager

 

This after i have told them 500 times i don't discuss my finances over the phone. Will be writing a strong reply!

 

MBNA: (in a big square on the top of the letter to grab my attention); You could reduce your debt by up to 40%, a saving of £2,191.92

Call us on 0800 0924297 by Wednesday the 14th March 2007

It's your call. Take advantage of this very special opportunity!

 

Due to MBNA's regulatory requirements we will be forced to register a Default at the Credit reference Agency on your account in the near future if we cannot set a reduced payment program. We would like to avoid these actions and provide you with an opportunity to reduce your debt and begin rebuilding a good credit history. If you would like to discuss settling the account for a reduced amount based on your circumstances, possibly through the use of savings, alternative financing or the help of a family member we will be happy to discuss this option with you. This will allow you to relieve yourself of responisility for repaying the remaining debt and represents significant savings to you.

 

(Signed by printer)

Please contact us... etc etc. Matthew McGrath - Head of Collections

 

A couple of days later:

Dear Mr x, I am writing to you as your account is seriously overdue and i have not been able to contact you by telephone.

 

Your total debt of £5,479.81 is to be legally assigned to debt collectors. However, I am prepared to take steps to prevent this prom happening. This will not be possible once the account has been legally assigned, and it therefore represents a once in a lifetime opportunity to reduce your debt.

 

There are two options available to you:

 

If you are able to make a payment of £2,192 against this full debt then i will consider writing off the remainder, and will reflect this on your credit file. If you are unable to raise funds immediately, please contact me to discuss alternative options.

 

Alternatively, for a fixed period, i may be prepared to release you from your obligations to pay the minimum amounts required by our standard terms on the condition that you instead make reduced monthly payments on your account. I will fix the level of the reduced monthly payments at a minimum rate of £44.00, and as long as you make those reduced payments, i will also suppress interest on your balance. This means that any payment received from you will be deducted from your outstanding balance.

 

I must make clear that if you do not make the reduced monthly payments which i set, you will immediately revert to our standard terms and conditions. That means that you will have to make standard minimum payments, and you will have to pay interest on your balance and any default fees you incur.

 

Please do consider this opportunity. I can be contacted on 0800 .. .. If you do not call, then i will not be able to help you.

 

(signed personally)

Paul Brighton - Customer Assisitance Section Manager

 

MINT: Dear Mr x, Thank you for your letter. Whilst the content of your letter has been duly noted, i must advise you that the bank would not be prepared to waive the outstanding balance, under these circumstances. I would however, be prepared to continue with your repayments of £1.00 per month for a period of three months. In July 2007, your account will be reviewed in the normal way. Within this arrangement interest and charges will be suspended.

If you have any queries, please telephone..

 

(signed personally)

 

L M Darby - Senoir Recoveries Officer

[davey77]

Back again lol Haven't been online much lately to udate. Life you know. Anyways... where am i so far? ...

 

Capital One replied but with the same letter as last time "send us proof of benefits" etc. Seems my bank statement copy wasn't enough showing the IS and CA benefits. Couldn't find the entitlement letter at the time and still can't so i'll have to write to the DSS and get a copy to forward on. More delay, but still hopeful.

 

Barclays are B*****ds. They cashed my £1 cheque when you got my CCA request and then this morning to say:

 

"Thank you for your recent PAYMENT. Unfortunately, this was not enough to clear the accrued arrears. Ammount still over due, pay immediately, We now accept Switch etc etc"

 

Payment? What payment? That was clearing the fee payable for the CCA!! and they have cashed it to go towards my debt therefore have no intention of sending the CCA or even aknowledging they recieved such a request. I'm hopping mad this morning! How can you deal with this people!? I feel like reporting to the financial Ombudsman or something? Can i do that or is that the right place to go to?

 

My letter they replied to was:

 

"Barclays...Dear Sir,

Would you please write to the above address with a personal and detailed response as a matter of urgency re my previous request to write off the debt owed.

 

As you are fully aware i do NOT discuss my financial affairs over the telephone but am, and always have been, prepared and willing to communicate with you via letter and you certainly have all the necessary facts from myself in numerous and detailed correspondence the last four months regarding my personal and financially difficult circumstances to come to a final decision on this matter.

As you are aware my situation is unlikely to improve over the long term.

 

Please find enclosed a recent bank statement copy clearly showing CA (Carers Allowance) and IS (Income Support) deposits which other creditors have recently requested and by whom I am currently awaiting a decision.

 

With reference to the above account I would be grateful also if you would send me a copy of this credit agreement and a full breakdown of the account including any interest or charges applied. I understand that under the Consumer Credit Act 1974 [sections 77−79], I am entitled to receive a copy of any credit agreement and a statement of account on request. I enclose a payment of £1 which represents the fee

payable under the Consumer Credit Act 1974. I understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

 

 

I look forward to receiving your reply,

Me"

 

No other replies as yet from anyone else regarding the CCA's.

[davey77]

Yes still here! Thanks for that.. Almost to the 12 day mark.. i was late getting some out.

Mums good thanks. Enjoying the sunshine! Hope all is well with you Corn!

I will be writing a very stern letter this evening to Barclays! Anyone know who i can write to higher up in the Barclays chain? I am getting nothing back from Chris Gates - Collections Manager - accept automated and pointless letters. Who's the president of Barclays Bank?

[davey77]

Sorry.. but i was baking in the sun yesterday!

Got the address thanks. Sending it to Barclays, Anita Hicks, Customer Relations Manager, 1 Churchill Place, London:

 

Dear Madam,

As Customer Relations Manager for Barclays I write to you as Chris Gates (Collections Manager -Kirkby) obviously is not interested in resolving, negotiating, communicating in a professional or personal manner whatsoever.

 

My letters over the last four months and their specific requests, comments, enquires therein have been deliberately ignored and fobbed-off with standard automated and repetitive replies.

 

I refer you specifically to the most recent letter received which is an exact copy of the letter sent to me 29th Nov 2006! It dared to be in the form of an ‘insufficient payment’ letter (dated 22nd march 2007) informing me that the £1 cheque sent which was received and signed for (by recorded delivery) was then cashed (23rd Mar) as a recent payment!

 

That was, as you are completely aware, NOT a payment towards my debts and i must insist that the amount of £1 be removed from my account and used as originally intended - per my request for the credit agreement under the Consumer Credit Act 1974 as specifically and clearly requested in my letter of the 16th March 2007.

 

That cheque was obviously intended for payment for said agreement as the appropriate fee under the terms of the above act and i demand it be used for that purpose.

 

If the replies to my correspondence the last 4 months have been some kind of delaying tactic that has been used against me then I must point out that a Judge will look unfavourably upon it should this ever be presented in a Court of Law.

 

(I enclose my previous communication for your benefit.)

[davey77]

A reply from MBNA.. but not regarding the CCA but the previous letter I had sent and didn't hear back from posted 10th FEB!

It's really going on about the phone call issue which is academic considering i changed my number 3 months ago or so. Anyway, it doesn't really amount to much and i have no need to reply. The basis of the letter stated:

 

Once again apologise for the calls you have received from Global Vantage (GVI). MBNA pride themselves on their service etc etc...

 

Please rest assured that I have personally ensured that your accounts have been recalled from GVI so calls from them will cease.

 

We would like to discuss your Financial Statement with you at your earliest convenience and our Debt Management team is ready to take your call. We are unable to 'write off' your debt; but there are options we can discuss with you that will ease your situation... all fees and interest have been stopped until we establish a payment plan..

 

This is our final response..

 

Steve Bailey - Senior Vice President -MBNA

 

How many times do you have to say 'I don't discuss my finances over the phone'. gezzz And if they have 'options' available for me why not simply spell those out in a letter? They have all the info about me they could possible want. Because they want to get me on the phone and 'persuade' me to pay something that's why. Ah well... Still waiting for anything back from Capital One and the CCA's.

Watch this space (in the sunshine!)

[davey77]

HFC have today sent me a default notice and Cahoot an intention to default letter. Can they still do that as they are both over the 12 days for my CCA request?

[davey77]

Thanks Corn! I shall get those letters out today! No Ladybird.. No formal 'dispute' letter, just the CCA's. But now I will certainly write to all concerned as all my creditors are in breach of the CCA requests to date. More letter writing ahead. Thank goodness for printers! Hope easter was sunny for all!

[davey77]

I sure will! Thanks Ladybird! At least we have the sunshine back again!

[davey77]

Ok.. Capitol One are giving me a bit of a rou around here: I asked them to write off the debt so they asked for original proof of Carer's Allowance. I sent a bank statement copy showing CA deposits as, at the time, i didn't have the letter from the Benefits people. They wrote back with the same letter. I ttok that to mean the statement wasn't good enough. By then i have the CC entitlement letter so sent the original off to them asking to return to asap.

A letter this morning says:

 

Thank you for your recent letter telling us of your situation. We would like to help you with your account. Please send us within 28 days either;

 

A letter from your doctor.

A letter from your hospital consultant.

A current sick note.

Proof of DLA/Incap/Carers Benefit.

 

It must say when you were diagnosed with your illness and/or the length of time you are singed off for.

 

They know it's not me that's ill and i have already sent them proof of carers allowance which they didn't return to me! ugh! Looks like they are just pulling these letters out of a pre written box to send me and not dealing with this as personally as i had thought.

 

I am going to have to write again and tell them that they already have original proof (which i am waiting to be returned to me) and i require an immediate and personal reply to my original request!

[davey77]

A reply from Barclays customer relations:

 

Dear Mr x,

 

Thank you for your recent 'email?', which was received at this office on the 2nd of April regarding the service you have experienced from Barclays. I am sorry that you have had cause to complain.

 

A copy of your complaint has been forwarded to a Manager for the relevant area who will arrange to have the matter fully investigated, and for somebody to contact you. You should hear from them by no later than 1st May.

[davey77]

This is what i intend to send to Capitol One:

 

Dear Madam,

I am at a loss to understand your recent communication and require a response to my original request to have my debt written off or a personal reply as to why the letters i am now receiving are not specifically tailed to my personal circumstances.

 

Your letter in reply to my request dated 23rd Feb 2007 asked for proof of Carers Allowance. At the time i did not have a letter so sent a recent bank statement copy showing Carer’s Allowance and Income Support payments.

 

Your reply to that dated 17th March was simply another request for proof of Benefits, by which time i had a Carer’s Allowance entitlement letter, which i sent to you asking that it be returned promptly.

 

Your letter received today, 11th March, is yet another request for Proof of Benefits and also did not include the return of my original Benefits letter.

 

I am disappointed that after good communication between us you are not continuing to reply to me in kind when you have in your possession all the necessary facts to reach a decision in my case. I am not a statistic but a real person. Please reply to me as one.

 

 

 

Yours sincerely, me

[davey77]

Thanks Corn! Yes i will ammend and probably send although will think about it, ta. Nothing from them regarding the CCA. And i have just breifly checked my bank statement and, although i have proof of delivery, MBNA never cashed the cheque i sent for the CCA. They got that 21st March...hmmmm