Terminal Illness - Debts

[adr1an]

Hi

 

Not sure if this is the correct place to post, if not please redirect me, Thanks.

 

Basically this is my situation.

 

I am seeking advice on behalf of my father, who has now been informed that he has Pancreatic Cancer, inoperable, and highly likely has less than a year - more like 5 - 8 months to live.

 

Naturally this has come as quite a shock to all of us and we almost feel like this is happening to somebody else, kind of surreal, it hasn't really sunk in.

 

At present he is dealing with the 'Charity' Step Change, formally Consumer Credit Counseling Service (CCCS). My own personal thoughts of this 'outfit' for want of a better word are not good, just my own personal feelings after dealing with them over the years. I believe they are 90% for the creditor, maybe 10% for the client - in this case my father.

 

Anyway, he has been paying them for probably 7-8 years on a DMP. Most of his creditors stopped the interest and charges and some are fully paid, others not far off. Then we have a couple of them who have continued to add interest/charges and he still owes them the same now as he did 7 years ago.

 

My father currently pays them £125 a month. I believe though, that his living expenses are about to increase as he will be attending a lot more appointments at the various hospitals that will be treating him, Chemotherapy etc - just maybe giving him a short while longer. Obviously extra fuel, possibly parking, maybe carers and even buying frozen foods to heat in a microwave. Basically I think he isn't going to have enough to cover what's left of his debts.

 

I have spoken to Step Change, and as expected they still seem very keen on him continuing with this DMP. I however, rightly or wrongly have decided that's not going to happen. He has no savings, he needs to use this money - even putting as much as possible away to pay for his funeral as none of us has any money or insurance for that. Sad situation I know. He has no assets whatsoever.

 

I believe he is claiming all the benefits he can, DLA, Pension Credits etc.

 

So I have some questions, and if anybody can help please feel free to do so:-

 

1) - All his debts are in his name only, so they die with him basically? I hate saying that word die

2) - As these greedy creditors have not helped him in any way (ie, adding interest and charges) would it be wise for me to write and explain his situation, requesting they now clear the debt?

3) - What about if they foolishly decide to take court action, could money be taken direct from his benefits? Although I can't imagine them going to court, it wouldn't surprise me.

 

Basically is it wise to offer something just to keep them off my father's back as I don't want him to worry about this debt. He is worried (like debt is is biggest problem right now!). He is worried we will have to pay his debts after he has passed away.

 

Also, I have briefly read the claim pack for a funeral from the DWP, it seems they will seek to get whatever is in his bank account to help towards the funeral cost. I am not sure how much I could claim towards his funeral, so is it wise to put his bank account in a joint name with myself?

 

So many questions and so sorry for the long first post I look forward to hearing your views. Thank you.

[dx100uk]

sri I know how hard it can be after the un-real realisation of it all.

benefits are not my bag

but if he was on thse benefits before this trajic news

he needs to update everyone

DLA etc will def increase.

 

anyhow.........

 

his debts.

 

i'd pers dump step change.

 

get his credit file

match all the debts , make SURE they show [i have doubts they all will]

 

is it possible to please list them here

with the org creditor, who owns it now, and who he is paying

 

ideally you need to challenge EVERY DEBT by CCA request.

and get an sar off to every original credit

get all the statements

and look at reclaiming

any PPI will prob be worth MORe to reclaim it than 'using' it.

and PENALTY charges too!

 

as [i assume] you will become an executor this will greatly help your latter cause too.

the earlier you can deal with these debts the better.

 

IF there is no estate/assets. in all essence, yes the debts die.

 

dx

[unclebulgaria67]

Agree dump the DMP with Stepchange and try to enjoy the remaining time as best as you can. There is no reason to keep any money saved in your fathers bank account, if there is any issue of the bank taking this to offset any debts owed to the bank or its subsidiaries. This could be taken out as cash and put in a Post Office saving account or other account, that can be accessed for when it is needed.

 

What could be done, is to contact the creditors directly to advise them of the situation and to advise that in the circumstances, due to increased costs that will be experienced, that token payments of £1 per month will be made. Ask them for their standing order details to make the payments. Then it is up to these companies to respond to the situation. If they don't respond in an acceptable way, then make a CCA request if this is appropriate.

 

There would be little point in creditors taking any court action, as there is nothing much they could obtain. The costs are likely to exceed anything they would get back.

[citizenB]

Sorry to hear this sad news. The last thing either your Father or the family need at this time is hassle with debts.

 

As this concerns a terminal illness, has you Father been given a DS1500 form ? This will help him obtain benefits that he might be entitled to, without any hassle. It might also help in seeing off some of the creditors, especially if they are made aware that there aren't any assets they can clamp their greedy paws round in a few months.

[citizenB]

http://www.patient.co.uk/health/benefits-for-the-terminally-ill

 

https://www.gov.uk/attendance-allowance/how-to-claim

 

This explains more about the form and what you should be doing.

 

Have you been given a MacMillan Nurse contact/referral ?

[Jam_Buttie]

Ignore all contact from any creditor/Stepchange and get him to use the money for a holiday/something fun.

[scotgal68]

I'm sorry to hear about your dad, I can advise you on the funeral cost and recovery. The person who takes responsibility for arranging the funeral is liable for the costs. You can claim a payment from DWP if you or the person who made the arrangements are on any of the qualitying benefits:

 

Income Support

income-based Jobseeker’s Allowance

income-related Employment and Support Allowance

Pension Credit

Housing Benefit

the disability or severe disability element of Working Tax Credit

one of the extra elements of Child Tax Credit

Universal Credit

 

If your dad has nothing in his bank account - they can't recover anything ( i would make sure that is the case)

[adr1an]

Hi everybody, sorry for the delay in getting back and thanks for all your posts they are most helpful, I'm still looking through the various links. I do believe his doctors mentioned something about the cancer nurses visiting him/us.

 

Stop paying his debts and a holiday sounds great! (Jam_Buttie!)

 

I've been looking at the funeral costs link and it seems I would qualify, although it does mention something about other children who are not on benefits then I may not be able to claim. I am wondering if the cost of the whole 'Basic' funeral is covered because I see £700 on that information? Our local funeral directors require £500 up front, so with that alone my father would need to put to one side before paying anything to Stepchange. I think overall I will look into giving them £1 a month, maybe. What I am afraid of is that they will hassle him in between now and his passing.

 

I was wondering is it possible for them to deal with me only? Stop contacting him full stop? Or is that not possible or unreasonable? I don't know.

 

I will see about getting written proof from his doctors just confirming his position for the creditors, or is this not a good idea?

 

He already claims the top rate of DLA, and has a disability car. We could send that back to save money, but there again he will probably need that more than ever at the moment.

 

Also would it be better for the purposes of the funeral claim to remove the money from his account or put the account in joint name with myself (if that's possible). Makes me sound like I'm after his cash already Not that he has anything! We just need to run through everything I guess.

 

I will list his debts here as best I can, this may help.

 

Capital One (Credit Card) - £1500 owing)

Argos Card (Store Card) - £1300 owing)

Blair, Oliver & Scott (Credit Card from the Halifax (I think)) - £1300 Owing

Merlin Financial (Lloyds Loan I believe) - £1100 owing

CL Finance (B&Q Store Card I Believe) - £445 owing

CL Finance (Currys or Dixons I think - Store Card) - £330 owing

HFC - £59.00 (Store card)

HFC, HFC, HFC - All three fully paid.

West Midlands - All paid

 

Not a crazy amount of debt. I recently did a CCA for Merlin and Argos and all came back ok. These two are also the only two who continue adding interest, generally about the same as he is paying them, bar a few pence. So over the last 7-8 years of paying them his balance is pretty much the same. All these are being paid through StepChange for the same period.

 

If any of them need to go it will certainly be Argos and Merlin, they have also been the most aggressive in chasing the debt.

 

Basically I want to keep them off his back and I want them to deal with me head-on if possible, because I have no fear of these people. I would have dealt with them sooner but my father was against it, now though he doesn't care too much. He has more to think and worry about than these people.

 

Sorry about the long post, it's like question time!

 

Thanks all for your support

[ashmk]

Pay them all £1 a month and they won't go near a court. Don't ask them, just do it.

 

If they want more tell them to stuff off.

 

Enjoy the time you have left.

 

They are not worth the stress and you cannot reclaim the time it is costing you dealing with it.

[adr1an]

Pay them all £1 a month and they won't go near a court. Don't ask them, just do it.

 

If they want more tell them to stuff off.

 

Enjoy the time you have left.

 

They are not worth the stress and you cannot reclaim the time it is costing you dealing with it.

 

Thanks for that. Honestly that is exactly what I feel, and no doubt will do. I just get the nagging feeling they will play up, but if I were thinking clearly I would say to myself, "What the hell can they do - they have already been paid this is just interest". Yes you're right of course time is too precious to be playing letter ping pong with this. Thank you.

[sequenci]

Pay them all £1 a month and they won't go near a court. Don't ask them, just do it.

 

How do you know that they won't?

 

To answer your questions:

1) - All his debts are in his name only, so they die with him basically? I hate saying that word die

Yes that's true - if he leaves an estate they could try and claim from that

2) - As these greedy creditors have not helped him in any way (ie, adding interest and charges) would it be wise for me to write and explain his situation, requesting they now clear the debt?

Yes, some crediors do write debts off where it is proven someone has a terminal illness

3) - What about if they foolishly decide to take court action, could money be taken direct from his benefits? Although I can't imagine them going to court, it wouldn't surprise me.

No, there is no provision to allow direct deductions from benefits.

 

Is he a homeowner?

 

 

If he's in rented then I SERIOUSLY suggest looking into a Debt relief Order - it'll stop all of the stress pronto.

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

[ScarletPimpernel]

Definately bin StepChange; they are useful only in particular circumstances, and your father's case is not suitable.

 

You can be an authorised representative for your father. All you need to do is produce a document for him to sign that says something along the lines of:

 

I authorise (your name) to act as my representative in the matter between (creditor/DCA) and myself.

 

Signed: Date:

 

Just enclose it with your first letter to the creditor/DCA.

 

Looking at the amounts concerned, it may be worth asking creditors to consider writing them off.

 

Dear Sirs

 

Please find enclosed authority for me to act as my father's representative.

 

I am writing to let you know that my father, who is already disabled, has been diagnosed with a serious illness which has a terminal prognosis.

 

In the past my father has made payments to you through a Debt Management Plan arranged by StepChange. Since my father can no longer afford the payments, he will not be using StepChange with immediate effect. Given the relatively small amount concerned, I ask you to consider writing off the debt.

 

If you require proof of my father's condition, you may write to his General Practitioner, Dr xxxxxxxxxx at (address). My father will consent to the release of relevant information to you. The doctor may charge you a fee.

 

I am aware that the Office of Fair Trading, in its Debt Collection Guidance, requires you to communicate only with me as authorised representative. I am sure you will understand that this is a very difficult time for the family and I therefore expect you to comply fully with this requirement. All communication in this matter must be in writing.

 

Yours etc.

 

 

 

Some may write off; others will send template waffle, and some may ask for a medical certificate - which a GP usually charges £75 for - that is why I suggest placing the onus on them in the first place. If they want to play letter tennis - fine; the longer they delay the less chance they have of getting even a £1 token payment.

 

When your father dies, his estate becomes responsible for his debts, and the executors of the will should deal with any claims. However, if he has left no will, or the estate is very small, which seems likely, then after funeral expenses and so on there is unlikely to be anything for the vultures, though that doesn't always stop them trying to convince family that they are responsible. In particular, watch out for a very downmarket firm of solicitors called Phillips & Cohen, who specialise in trying to get money out of grieving relatives.

 

I think you are doing the right thing by taking over now; it shows the creditors where they stand but also demonstrates that you are taking a practical and realistic approach.

 

It may also be worth checking whether any of the creditors have a 'deceased acccounts' section; many large financial companies do, and they may well be easier to deal with than the spotty youths in collections who are only interested in commission.

[adr1an]

Thanks for all the advice here, I will certainly digest it all and I certainly feel more confident to deal with this for my father.

 

I'm sure I will need more advice soon, so don't go away!

[citizenB]

Thanks for all the advice here, I will certainly digest it all and I certainly feel more confident to deal with this for my father.

 

I'm sure I will need more advice soon, so don't go away!

 

We wont

[adr1an]

Hi all

 

A little bit off topic here but maybe somebody will know the question to this one:-

 

It seems my dad may be able to claim Attendance Allowance. Can anybody tell me if he were to claim this does it affect anything else, for example, Rent/Council Tax Benefit, DLA, Pension Credits etc.

 

Thanks again.

[scotgal68]

No it won't affect any of the above in fact he might get an increase in his existing benefits x

Edited June 6, 2013 by scotgal68

[caro]

I wonder if you could get carers allowance, although this does affect other benefits.

[scotgal68]

I was thinking that caro, he could claim it, and although can't get due to overlapping benefits, if he has the underlying entitlement, he could get the carers premium

X

[caro]

Thanks scotgal. I'm not clued up on benefits but I knew others would be.

[adr1an]

Thanks for the quick response, but it it seems that as he already claims DLA he can't claim Attendance Allowance:-

 

"You must be 65 or over and NOT already claiming Disability Living Allowance." (Quoted from Age UK Website) He already has DLA, so I guess they are pretty much the same benefit.

 

I should have searched harder before posting. Thanks anyway guys.

[scotgal68]

What rate is he on? x

[adr1an]

What rate is he on? x

 

He gets the highest rates, and has a car through the scheme.

[scotgal68]

Why don't u apply for carers allowance? If u do, he can get carers premium x

[adr1an]

Why don't u apply for carers allowance? If u do, he can get carers premium x

 

I know last year my wife claimed Carers Allowance. My father's benefit was reduced (I think it was part of his Pension Credits or along those lines) by the same amount as she claimed. Also as I receive ESA I had a reduction made as obviously the Carers Allowance is classed as income. So it's probably worth leaving that alone. As far as I can tell my father seems to be claiming all that he can.

 

Thanks for your time though, much appreciated.

[adr1an]

Hi all

 

Can I just pick your brains again please.

 

I'm not spending huge amounts of time dealing with my father's creditors as we are up to our necks in it at the moment as his illness progresses,

but I need some advice if possible please.

 

As you know he is (or was) with CCCS (StepChange now).

 

They are quite frankly being hard work.

 

What I am needing from them is all the information they are holding about my father's accounts.

Specifically I want all of his payments he has paid to them and all of the payments they have sent to his creditors over the last 6-7 years.

This will be handy should I need to use it in court for example.

 

They are being very, very defensive, asking me why, what, when etc. etc., you get the message.

As I stated to them (hopefully correctly) under the Data Protection Act I would be entitled for this information,

 

I guess it's a SAR request?

 

I explained that some companies charge for this but they have refused to say if there is a fee.

They are also saying that 6-7 years is a lot of information and they may not be able to send it all to me because of the amount of information!

 

I asked if they have this information and they agreed they did, but sending it is another matter, as they said "Your father has all the statements".

I pointed out that he does not as he has not kept them as far as I can see, and as he has had on-line statements for quite sometime,

on-line you can only go back six months as far as I can tell.

 

I know I can write individually to each company, which would increase costs dramatically but at the end of the day StapChange have all this information under one account.

 

I see I will need to write a formal letter, would this be a standard SAR request letter? Also I am guessing they HAVE to send this information to me?

 

Thanks again.