Lloyds Bank - Debt

[Donel261]

Hi all,

 

I am hopin you can either give me some advice or point me in the right direction.

 

I am trying to help my mother sort out her debts. She owes lloyds Bank £3542 from a loan she took out in 1996. (I think she only borrowed around £1500 to start with but interest has been accruing for years as she went through a period of not paying it at all).

 

Anyway, about a year ago she gave in to their harrassment and started paying them £5.00 a month. She has maintained the agreement for over a year but now they have said she has been on the scheme for the maximum time, interest is restarting and they want £100 per month. In a nut shell, she is on a low income and living hand to mouth after essential bills are paid. She cannot pay what is being asked of her.

 

If they carried on suspending interest she would be able to up the payments to about £15.00 per month but they are having non of it.

Where does she stand? - he only option is to tell them to go and sing for the money and wait 6 years for it to become statute barred and come off her credit report. Which may be the best option as (1) she cant afford to repay it and (2) her minimum payments will probably need to be continued until the day she dies, with money still being owed.

 

Anything you can advise would be helpful.

 

Cheers

[silverfox1961]

Mornin

 

My first thoughts are,

 

In the period when your mum wasn't paying, for how long wasn't she paying?

E.g If she stopped paying in 2000 and restarted in 2009.

 

 

If the debt is being chased by a DCA, send them a CCA request.

 

If the debt is still with Lloyds, send a SAR AND a CCA request

 

I would imagine that there is loads of charges on the account. If the agreement is good, go for the charges.

 

One more thing to remember, a creditor cannot force your mum to pay more than she can afford. Only a court can do that