Welcome to the new Debt Questions forum. Feel free to say Hi and tell us a little about yourself.

Moderators: TalbotWoods, JaneClack

By Lunarstorm
#471879 Hi, my name is Sam and I'm a 35 year old disabled women with two children, one of whom is also disabled.

I got into money problems around 2005 when I became ill and tried desperately to honour all my debts but one of my creditors seemed hell bent of making sure I could not. This was Lloyds bank. I had two or three accounts with them, a loan and a credit card. I had taken out PPI on the loan and credit card but when I made the claims, the funds for the credit card did not get paid straight to the credit card as I was lend to believe and the PPI on the loan was not paid on the due date, although it did go straight to the loan account.

As a result, after six months of desperately trying to pay these bill, I started to be late paying them, as I was no longer working due to ill health and the insurances where getting paid AFTER the payments where due. As a result of that, Lloyds where chargeing me late payment fee's, OD fee's and bouncing DD's, sometimes even if I had enough money in my account as they where saying they needed to keep that money in my account for their payments which where not due for a few days. Lloyds also moved debts from my loan and crdeit card accounts to my current accounts that where not OD but also only had a nil balance, thus making me incur fee's on those accounts as well. They even re-open an account I closed months earlier and added £900 debt to it, although I managed to get them to re-close the account when I challenged them about it.

All the time I was making agreements with Lloyds and I kept to my part but Lloyds would not keep to theirs, they would take money the day after I had made my on time agreed payments, they froze my accounts three times of the day that the little money I still had coming in (child benefit and child maintenance money which was for food etc for my children ) was paid into my account and also emptied my accounts of any funds more time than I can remember with no warning, even though I had never no stuck to the agreements to pay back the overdue payments because of the insurance issue.

It got to the point that at one point I was paying over £400 per month in charges as well as the loan and credit payments and fee. As a result of Lloyds actions, I also got behind with a few small debts, such as a capital one credit card. These company's where great and I paid most of them in full before I finally had a nerves break down in 2007-2008 which came to a head when I made a serious and nearly successful suicide attempt in Feb 2008.

I would add that the debt was not the only factor in my mental health problems. I had been externally depressed for years, was in constate extreme pain (still am), had a neighbour from hell and was going though legal proceedings with my land lord (also her land lord) to stop her harassing me (police where also involved and had already taken her to court once), my husband had an affare and my youngest child who has now been diagnosed as Autistic, at the time, the HV and doctors where telling me that it was me just not coping with him and being over protective as my first child nearly died due to a birth defect the hospital missed (with my first child they also sad until he was critical that it was just be and nothing was wrong)

Anyway, after the suicide attempt, I moved house and when I was up to it, rang debt line for advice. At the time, they advised me to stop all contact and payments and let the creditors take me to court and that I would be declared bankrupt. Over the years the debts has been between god only knows how many credit collection agency's but no court action taken, well until today when I got a court claims form for one of the small debts I must have not paid in full. I will post in the advice section later asking for how to proceed as I'm 99% sure, after speaking to debt line again today, that the debt is time barred as I know I have not made any payments to any debt since March 2008. I honestly don't know when I made my last payment as my memory from around that time is full of black holes as I was very very mentally ill, to the point I had to see my GP every two days to get my medication and check my state of mind as I was and still am considered a risk to myself. Although luckily I only have to go and see them every 30 days now lol.
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By JaneClack
#471880 Hello and thank you for posting. It takes a lot of guts to do this and explain things.

We shall wait until you post your question as I am not sure what you want to know.

If you have no assets and your property or job would be affected then there is nothing really that any creditor can do - they could go for court action but if you filled in a budget form for the court (as comes with the claim form) then you could offer as little as £1 per month if that is all you can afford - you would be deemed a "vulnerable" client and all creditors today should Treat Customers Fairly as the Financial Conduct Authority is robust in pointing out. In fact given your history they should not be hassling you now but of course they may not be aware.

A class action like bankruptcy would clear all the unsecured debts but does cost and we do not know how much you owe or to whom and this is not really the appropraite place to go into so much detail.

However, if you click on the red sentence below it will give you the contact details of free debt advisory services who would be more than happy to help.

Anyway, please post your question and we will be able to see what more information we can provide.
By Lunarstorm
#471882 Hi Sarah and thank you for the reply.

I will post more detail in the advice section some time tomorrow now as it's late and my brain has decided it does not want to play ball with me lol.

Sam