outstanding balance on bank loan

Discussion in 'Legal and financial issues' started by bagee, Oct 7, 2015.

  1. bagee

    bagee Registered User

    Jun 2, 2015
    15
    Hi all, Mum has an oustanding bank loan balance. She is now in a nursing home, her pension is taken for costs less personal allowance. I have power of attorney but does this make me liable for payments as I don,t have anyway? Flaying around in the dark a bit as it,s all happened so quickly and didn,t realise I was to inform x y and z!! Too concerned for mum at the time. Thanks in advance for any replies to similar situations.
     
  2. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,668
    Salford
    NO, it's no more complicated than that, unless you're a guarantor on the loan (and I take it you're not) and don't let anyone tell you any different. Do everything in writing not by phone, tell them the situation and question why the let a vulnerable person get into debt in the first place.
    Citizens Advise might be a useful place to go to see if you can get the debt written off.
    K
     
  3. bagee

    bagee Registered User

    Jun 2, 2015
    15
    balance

    Thanks for speedy reply! No I,m not on the loan agreement. I have appointment booked with bank to tell them no more payments are being met so hopefully I,ll have one less thing to worrry about after friday. I,ll post results of meeting thanks again.
     
  4. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,668
    Salford
    There's a couple of different ways this could go (and they're your business not mine so you don't have to tell). If she has assets like; a house, money in other places then you can negotiate, like if they suspend any interest payments and other charges you'll do everything possible to get them paid ASAP as you have LPA then fix the amount repayable with no more charges, they have to suspend further interest charges.
    If there's no real assets then just act massively unconcerned, at the end of the day (gawd I hate that expression) it's not your debt so it's not your problem, it's their debt so it's their problem. You can be on side with them or just walk away, act casual.
    Sure they'll expect you to be afraid of a big important bank they'll probably say some threatening and scary things but basically it's all the "paper tiger" syndrome don't let them intimidate you.
    Pull out your phone and show them a picture of some white haired old lady (anyone will do) with her head on a pillow in a nursing home and say "sue her" at least it'll give the Daily Fail another story about how badly the older people in this country are treated:)
    You are holding more of the cards than you think, they need to be working with you not against you and ultimately they do know that just make it clear you do too.
    K
     
  5. Pete R

    Pete R Registered User

    Jul 26, 2014
    2,046
    Staffs
    Has your Mum had a financial assessment carried out by the LA? If so I would have thought the loan would have been discussed.
     
  6. arielsmelody

    arielsmelody Registered User

    Jul 16, 2015
    511
    Even though you have power of attorney, you are not personally responsible for paying your mum's debts, just for making sure that your mum's money is appropriately managed.

    If your mum's income is very limited, you should draw up a statement of affairs (ie a list of all the money she has coming in and going out) and that will show how much surplus money there is available to pay the bank (probably none!) - especially if your mum is in a nursing home, there is a very good chance that the bank would agree to a debt management plan (ie freeze the interest and take no or very small token payments). If you go to Citizens Advice, they will be able to help you through what you need to do.

    There are also lots of helpful people on Martin Lewis's moneysavingexpert website (www.moneysavingexpert.com) - look for the Debt Free Wannabee board on the forum, you will get lots of support there.
     
  7. Izzy

    Izzy Volunteer Moderator

    Aug 31, 2003
    58,774
    Female
    Dundee
    My husband had a balance on a credit card written off after I wrote to the company. I explained that the card was his and I was not responsible for paying it. They wrote back after a while and said they had written off the debt.
     

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