Getting a debt written off is unusual.
This should probably not be the first thing you think of if you have problems paying your bills and debts.
But there are some situations where a write-off should be considered by the creditor, so this article looks at these “good cases”.
Contents
When to ask for a write-off
There was something unfair about the original contract
If you have a good case for saying that there was something wrong with the original contract, then if you ask the creditor to use their discretion and write off the debt they will sometimes agree.
The types of problems could include:
- you were under 18 ;
- you weren’t capable of agreeing to the contract (for example because of a learning disability, drink or drugs);
- you were sold something that was clearly completely unsuitable and this was financed by a loan organised with the sale;
- the terms of the contract were misleading.
Sometimes it can be argued that there is no valid contract at all, or you may have a legal remedy because the contract was unfair. But it may not be clear what a court would decide and you may not want to go to court or may not be able to afford it so it can be better to ask for a discretionary write-off. The creditor may also be uncertain what a court would decide and so may agree.
If the creditor doesn’t agree, you may be able to take your complaint to the Financial Ombudsman, saying the creditor has not treated you fairly and explaining why. This is much less informal and scary than going to court!
You will never be able to repay the debt
Here you agree you owe the debt, but your situation is now that the small payments you are making will never repay it. For example you may have a big shortfall from a house repossession and now be retired on a small pension. Or perhaps you have a long-term health problem that means you are very unlikely to be able to return to earning a good wage.
The longer you have been making small payments the more likely this is to be accepted. If you don’t have any assets that also makes it more likely. And if you have mental health issues now, which the debt repayments are making worse.
I am not saying this is easy. But creditors in 2024 are more sympathetic than they used to be if you have been trying your best for a long while but it is obvious that the debt is just impossibly large.
Major long term mental health problems
Mental health problems such as bi-polar or ADHD may have resulted in you applying for too much credit. And debt you can now pay little to each month may be affecting your current mental health adversely.
If you tell the creditor you owe money to about your mental health situation they may agree to wipe the balance. Or to remove interest so you only repay what you borrowed. It will help if you can provide evidence about your mental health with your letter.
This may be enough for many creditors. But if you get a rejection you could try to get this form completed and supply that to the creditor and ask them to reconsider. for this – the Debt and Mental Health Evidence Form.
Unaffordable council tax arrears
If you have council tax arrears and no possible way of paying them, even over quite a long time or by deductions from your benefits, then you can ask the council for a Section 13A discretionary write off. You are likely to have to prove you have absolutely no spare income or assets.
If you want to try this, go and ask your local Citizens Advice for help in drawing up a budget to show the council and to write the letter.
Guarantor loans
Guarantor loans become increasingly common since 2016. You may have been pressured into agreeing to be the guarantor on a loan by your partner, your ex or a family member you live with. In 2019 guarantors started to win a lot of complaints about these loans. There is a template letter here you can use: How to complain when you are the guarantor for a loan.
If you win, you are released as the guarantor and any money you have paid is refunded to you. If you think it is obvious you could never have afforded the loan, you may be able to win simply arguing that.
Economic abuse – other ways you were pressured into debt
Economic Abuse can take many forms, see this page from the Financial Ombudsman and the Economic Abuse section in this Citizens Advice page. There are links in that page that could be useful – talking to an adviser at Citizens Advice is a good place to start.
Also this page from the Finacial Ombudsman has
The new consumer duty, brought in in 2023, means that firms should not seek to gain financially as a result of economic abuse – and this could mean freezing interest and charges or even writing off a debt.
Alternatives to asking for a write off
There are some situations where you have other options to asking for a discretionary write off:
- if you didn’t take out the debt, you should instead tell the creditor to “prove it!” – to produce evidence that it is yours.
- if there has been no contact between you and the creditor for more than 6 years, then it may be unenforceable in court because it is too old, see Statute barred debt for more information.
- if the account is defaulted and has been sold to a debt collector OR it is defaulted and is very old but you are still paying the original lender, you can ask the creditor to produce a copy of the CCA agreement for the loans, credit card or catalogue. If they can’t, then the debt is unenforceable and though they haven’t written it off you can stop paying as they can’t take you to court.
See When to ask for a CCA agreement for the details of how and when to do this.
This isn’t legally a write-off – but the end result is you can stop paying anything so it’s much the same. - if the debt was “unaffordable” at the time it was given, you can ask for a removal of any interest so you only repay what you borrowed. If you have paid a lot, this could get the balance cleared and even some cash back! This can apply to credit cards, catalogues, loans and overdraft. See Ask for a refund which has different articles for the different types of debt, with a template letter for each.
If the debt concerned is part of a bigger debt situation then it may be simpler to just tackle that:
- the creditors lending to your mum in the early stages of Alzheimer’s may well have been irresponsible, but if the overall picture means that bankruptcy or a DRO is the best option, there is little point in trying to wrestle with a lot of creditors over individual debts.
- write off requests work best for “consumer debt” such as credit cards, loans and overdrafts. If a lot of your debts are arrears on bills (energy debts, water debts, mobile debts) or quasi-government debts (benefit overpayments, tax bills) it is much harder to get these written off and again bankruptcy or a DRO may be best to get you a fresh start.
How to ask for a write-off
What evidence can you include?
Think what evidence you have to support your case. Often this won’t refer specifically to the debt, but it will help explain your situation. Examples include:
- any benefits letters showing that you or someone in your family is in receipt of disability benefits;
- mental health issues are more likely to be accepted as a reason for a write-off if you can supply a DMHEF (Debt and Mental Health Evidence Form);
- a letter from the refuge you went to when escaping from an abusive relationship;
- a letter from your doctor or copies of prescriptions, clinic appointments;
- if you are helping someone with learning difficulties and they attend a course at a local college, then a letter from their tutor could help.
What to say in the letter
This is a situation where can be helpful if the letter comes on headed paper from an expert rather than from you, so go to your local Citizens Advice office to get help. They can also help you get a DMHEF form.
If you do want to write the letter yourself then:
- start off by saying that you are a vulnerable customer because of your health problems (or domestic abuse or other reason) and say you would like your request to be considered by their Vulnerable Customers team
- enclose any of the “evidence” mentioned above that you have;
- enclose a Budget Statement with the letter if you can’t afford the debt repayments. That link is to a National Debtline calculator, that will print out your income and expenditure in a format your creditors will be familiar with. If you aren’t sure what to put in, call National Debtline on 0808 808 4000 for help;
- enclose any benefits letters that prove you are on Universal Credit, JSA, ESA or Pension Credit. Creditors may be more likely to agree to a write-off if it is clear you aren’t going to be able to repay the debt anyway;
- if you are never going to be able return to work because of your health or age, point this out;
- if you think there was something wrong with the original contract, make it clear that you do not accept you are liable for the debt but you are asking the creditor to agree to write the debt off rather than incur the expense of legal action;
- think whether it is worth saying if the creditor rejects your request for a write off they should supply you with a copy of the CCA agreement for the debt. See How to ask for a CCA agreement if you want to do this.
- check if the creditor is a member of a Trade Association or Professional Body. If they are, check if there is a code of conduct that they may have broken.
Go to the Ombudsman?
You should consider this.
Here is a case where the Financial Ombudsman decided Vanquis should write off a debt where a customer had long-term major health problems, had to retire early and was getting Personal Independence Payment. As a result she could only pay a token £1 a month to Vanquis which would never clear her debt and was causing her stress.
Here is a case where the Ombudsman told Natwest to write off both an overdraft and a credit card debt:
The relevant rules require NatWest to treat customers in financial difficulties with forbearance and due consideration. And where a customer suffers with medical health conditions that are long-term and where it’s highly unlikely that the person will be able to repay the debt due to the unlikeliness of them returning to work in the future, I consider it to be good industry practice for a business like NatWest to consider whether writing off the debt in full is the appropriate thing to do.
These factors in addition to the fact that NatWest is unlikely to ever successfully recover the debt persuades me that the fair and reasonable thing to do is to write off the debt.
Dawn says
Please can someone help me ..please explain like you are talking to a 5 year old I have damage from meningitis and cannot process information very well,. today I received a CCJ I had filled in a statement of means and offered a payment of 2.00 p/m this had already been set up at 1.00 p/m and had been being paid for 20+ years with no problems then a few months ago I lost my debit card [I lose everything everyday] my friend phoned the bank for a new one which was sent to me but this also cancelled out my payments but I didn’t know that this would happen no one said about it I then started to get calls from Arrow Global who kept saying i owed them money and me keep saying but i’m paying you already …then by a sheer fluke someone not connected to the bank or debts told me that changing cards will cancel payments then before i had a chance to try and put this right I got a form from the court asking for a statement of my paying out costs so I filled it in but I added my dla which they have obviously taken as income because the letter today has refused my offer of payment and wants me to pay 103.49p p/m I can’t do this I have brain scan results showing damage that effects my memory and just 2 weeks ago I was diagnosed with breast cancer and to be totally honest I now feel suicidal.
Sara (Debt Camel) says
Hi Dawn,
I am so sorry this is all happening from such a very small mistake. And at such a bad time for you deal with it.
I think the easiest way to handle this will be for you to go to your local Citizens Advice and ask for their help. They can help in two ways.
1) they can help you put in a new application to change this very high monthly payment.
2) they can write a letter to Arrow asking for the debt to be written off because of your health problems and because you have been paying it for such a long while.
You could do these things yourself as the article above explains but I think some expert help would make it easier for you.
Sara (Debt Camel) says
I understand that Arrow has agreed to write off this debt.
Anni Large says
Hello!
I was on a DMP with StepChange which I was struggling with. I’m disabled and was struggling to keep up with the payments and they wouldn’t accept me making token payments for a little while so I decided to go self-managed to have a bit more flexibility.
Both my GP and psychiatrist suggested that I try to get my debts written off and supplied medical evidence for me to send with a covering letter written by myself.
Two of my debts are Shop Direct Ltd ones of which NCO Resolve have been collecting on their behalf. I sent off my “write off” request letter about 10 days ago. I checked my NCO account online a few days ago and both accounts said their status was “review” However, I checked again earlier and now they both say “closed.” What is the likelihood that they have written off the debts? One of them is for over £5000 so this does seem very unlikely!
Thank you for reading.
Sara (Debt Camel) says
Well it’s possible… the more responsible creditors will consider write off requests if you supply medical evidence.
However there may be another explanation – NCO Resolve don’t own the debt here, they are just collecting it on behalf of Shop Direct. They may simply have decided to return this debt to Shop Direct as being uncollectable at present and left the decision about a write off with Shop Direct.
I suggest waiting a few more weeks – 10 days isn’t very long so far – and then asking Shop Direct for a response to your request.
If they (or any other creditors) reject it, then you can just carry on making token payments for another year and then repeat your request.
Anni Large says
Thank you, Sara. :)
Tina says
I took out car finance with Blackhorse, they sold the debt to DLC Hillesden securities. They placed a charging order on my land registry. The original lian was taken out in 2008. If I sell my property will my conveyancer have to pay Hillesden.?
Sara (Debt Camel) says
Yes. Well that is assuming you haven’t repaid the debt. If you aren’t sure about this, or want to know if interest is being added, talk to National Debtline https://www.nationaldebtline.org/ about the details of your situation.
Billie says
My debt was made 10 years ago.
I was with my partner at the time but all our debts were in MY name (I’m a idiot)
For the past 8 years I have been paying around £20 per month. I can’t afford anything more, I’m a single mum, earn less than minimum wage because I’m self employed and I have a son with disabilities.
What can I do, I’ve never missed a payment to the collection agency but I’ll be paying these debts forever – I can’t do an I.v.a because I can’t afford to
Sara (Debt Camel) says
A few questions:
– how many debts do you have and roughly what is the current total?
– what sort of debts were they, loans, credit cards, overdrafts? Have they all been sold to debt collectors?
– do you have any “new” debts that you are paying?
– are you renting or buying? If renting, private, council, housing association?
Wendy says
Hi Sara need to ask a question. A debt came from PayPal and account in my name. A debt then has came from eBay and it’s in my partner’s name. This debt came about as my partner abused eBay for his own personal gain saying an item was sent when it wasn’t so he could receive money through the account whilst on holiday in Canada with his mother and our son. I am angry about this as I am left with a part of this debt that he wont pay and I am in a tricky situation as I just had a debt relief order granted on the 8th November and now this. I didn’t know who to ask for advise so please don’t judge. Thanks . Wendy
Sara (Debt Camel) says
So your partner had the password to your ebay and paypal accounts? Did you realise?
When did you find out about this “debt”? Are you still with your partner?
Wendy says
Hi Sara sorry only replying back now. No I let him put PayPal in my name as he told me that years ago he had problems with them I never thought much about it. He mostly dealt with ebay. I would have found second hand items to sell and he would do all the listing etc on eBay. I found about him selling this so called item whilst he was in Canada as on our family iPad his emails came up as alerts and it told me money had been sent to PayPal which had then been sent onto his mother’s bank account so she must have known. When I questioned him he said they ran out of money and he would sort account out when he got back but he never did .. quite the opposite when things sold he told me to post them on etc he couldn’t be bothered. The letter from a debt company came about two weeks ago about PayPal with my name just on debt and then he received a letter from eBay saying he owes them money also. I am just angry I suppose that I trusted him and this is what has happened. I feel that I shouldn’t be left with a debt that he lied about I feel a bit used. I am still with my partner yes Sara. Just this morning we were due £400 of universal credit and he owed safety net from Canada holiday in September past and they have just taken money owed and left us with £100 for essentials and we have 2 kids. Sorry I am going off the beaten track here but trying to give example of how irresponsible he can be. I could cry. Wendy
Sara (Debt Camel) says
I can see why you feel used, but this is by your partner. From Paypal’s point of view this is your debt and there is no reason why they should write it off.
Suggest you change your PayPal password and any other ones your partner knows.
How could he afford to go to Canada on holiday if he is borrowing from SafetyNet Credit who are a payday lender? I think he needs to face up to his debts. Cancel the CPA to SNC and any other payday lenders with his bank. Contact the lenders and ask for affordable payments. And tell him to read https://debtcamel.co.uk/payday-loan-refunds/ and look at getting a refund back from SNC.
Wendy says
Thanks Sara for your advise. His mother helped with flight to Canada and they were staying with relatives so accommodation was free but she knew that he would have had to get I to debt for the spending money as she herself lives on credit etc and she was happy enough with that and that’s what makes me angry too. Yes but thanks for advice again Sara. I will take it on board and see what I can do about the PayPal debt and his payday lenders. Thanks again. Wendy
Lbwilks89 says
Hi my debt has been sold onto PRA group ltd. I’ve checked my credit file and the debt it was with has marked it as settled, PRA group only took over the debt recently yet shows the same default date from 2016 (same as original debtor) is that right? This is the last of my debts from a DMP and I’m hoping to have a clean report showing in 2022 when this default will no longer show, I hope they won’t put a new default on.
Sara (Debt Camel) says
yes the debt with the debt collector should have the same default date as with the original lender. So it will drop off in 2022.
What sort of debt is this? And when did you open the account?
Louise Barclay says
My friend has just been contacted by an enforcement agency regarding a liability order from 2006 for council tax arrears now totalling 4k. Her ex was meant to be paying it at the time while she paid the rent. They still haven’t got divorced but have been separated 5 years plus, he was violent and she has a police report to prove it. This is the first time she has ever been contacted over it. She’s a single mum already in 6k of bebt and cant afford it, what would you suggest?
Sara (Debt Camel) says
Can I ask if she is renting privately, council or housing association? Any rent arrears?
Louise Barclay says
She is renting privately, no rent arrears
She has also just found a ccj from 2 years ago for 5k on her credit report from an old bank loan, it has her correct address on but she never received any paperwork from them
Sara (Debt Camel) says
I suggest she talks to a debt adviser (local Citizens Advice or phone National Debtline on 0808 808 4000) about a Debt Relief Order – see https://debtcamel.co.uk/debt-options/dro/.
A DRO will wipe out the CT arrears and the rest of her debts as well, including the CCJ.
In the meanwhile, she should NOT open the door to the bailiffs. They have no right to break in. See https://debtcamel.co.uk/bailiffs-dont-open-door/
James Richards says
I had severe depression/anxiety and BPD with alcohol/substance abuse when I took out multiple loans. I have since been diagnosed with complex ptsd and will not be returning to work in the near future. I can provide medical evidence to support this, what, in your opinion are the chances of my debts beimg uncollectable etc…
I was paying debts back when I had a fulltime job but now I just simply cannot afford it and I will not get back into work if I do not focus on my therapy.
Thanks James
Sara (Debt Camel) says
I’m not going to say this will be easy. Can you say who the loans are from and how much they add up to? When did you get the loans, was it over a short or long period, how long ago? I assume you are on benefits at the moment, are you buying or renting? If renting, private or social housing?
Trevor says
Hi Sara, I’m in a similar situation to the person above, but am a single parent and have only been working part time for the last 9 years. I was in too much of a mess before.
The debt charities are recommending bankruptcy, but it won’t work with my housing benefit which is paid 4 weekly in arrears and which doesn’t cover my full rent so I am slowly driven into an overdraft throughout the year, until the 13th payment comes through. I need my overdraft!
Credit cards, starting from @ 2002 until this January. I have been trying to pay them back, but whilst being very conscious of having no money for extras on one hand and very good at finding bargains, on the other something would spark me off and I would then splurge a stupid amount of money on something and then feel guilty about it for months.
I have been struggling with adversity. I have had depression for the last 25 years, which started off with an episode and being sectioned a few times. I am about to start counselling for this. I am feeling better for facing my financial difficulties, but what other options might there be for me? If I speak to the banks and they put my account through to their collections department, is this dangerous? Is there a chance that an error may be made and my debt being sold to a debt collection agency? I really couldn’t cope with this, as my debt realisation and inability to pay has made my depression the worst it has ever been. I would be so grateful for your response.
Sara (Debt Camel) says
Are you still making the minimum payments to your debts? Can you say what they add up to?
Are you working at the moment? Do you mind saying how old you are?
Your HB – so you are paying extra each month to not get any arrears, then your 13ts payment brings your account back to square? is this social housing?
Trevor says
Hi ,
No. Privately renting. I pay extra each month to go to my rent. This takes out of my WTC and small wages.
I am no longer meeting the minimum payments, and my accounts with various creditors have been on hold for two months already with no interest or charges being added. Crunch time. (oh- the debts add up to 37K).
Working part time, earning – not a lot. I am 45.
Sara (Debt Camel) says
So ideas around the rent problem:
1) say all your debts vanished, including any council tax arrears, utility arrears etc. Would you be able to manage the extra payments to your rent each month?
2) Have you asked your landlord if you could switch to paying 4 weekly?
3) The 4 weekly – monthly problem will vanish under universal credit which pays money for rent monthly. That may not be for a couple of years if you wait to be switched.You could just make token payment until then. So you will get a lot of cross letters from creditors,just put them in a pile. I understand this is difficult but if you tell the creditors you have mental health problems, you should be treated sensitively.
4)You may actually be better of under UC – some part time workers are – you could ask at your local CAB if they can do a “better off” calculation for you. If you are better off, then you could choose to switch now. There remains the problem about losing 5 weeks money if you choose to switch (which won’t happen if you wait to be switched). But you can get a UC advance to cover those weeks, then if you go bankrupt immediately afterwards, the advance payment debt is included in the bankruptcy
Trevor says
Hi,
I’m not sure what my Landlord’s response would be, and he may not be very pleased at the question, but paying him 4 weekly is an idea.
And UC too.
Thank you.
Typically I am scared stiff about bankruptcy. Something my father said years ago about bankruptcy not being a good option. But I think he must be thinking from the point of view of being tied for credit- which will actually be good for me. There is the being registered on the Insolvency Register which I hate the idea of especially as it seems to be for life. I imagine that future creditors, for example in ten years time if I was in the position of buying a house, might ask if I have ever been bankrupt then, and give a more expensive mortgage option? Sorry for all the questions. I really appreciate your help.
Sara (Debt Camel) says
I’m sorry, I missed your last reply. You are not on the Insolvency Register for life, just 15 months unless you are one of e rare people who get a bankrutcy restriction order. See https://debtcamel.co.uk/discharged-from-bankruptcy/ for how your name is removed from the Insolvency register after discharge.
The bankruptcy is on your credit record for 6 years. After that you can get a mortgage at an OK rate, but you will need a decent deposit, not just 5%. And go through mortgage broker as they will be able to tell you the lenders to avoid.
Martin says
I stupidly took a bank loan out when I was 18 and blew the money. The bank gave me a £7k loan even though I was unemployed (there is proof of this as I was claiming JSA at the time). I couldn’t afford to keep up with the repayments and the debt + interest was sent to a debt collection agency. I still owe some if this debt years later and I am currently unemployed. Is there any grounds for me to get this debt written off as I was unemployed?
Thanks
Sara (Debt Camel) says
How long ago was this? How much have you paid to the debt in total? What are your other debts at the moment?
Martin says
It was over 10 years ago. I ended up having to pay a total of around £9500 from a £7k loan, I currently owe £3600. I don’t have any other debts. I want to make good on it and pay for my mistake, but the credit agency currently dealing with the debt are threatening me with bailiffs even tho I haven’t missed any payments.
Sara (Debt Camel) says
is there a CCJ? If there is, has interest been added after the date of the CCJ?
Martin says
Not that I’m aware of. The debt was just pretty much immediately transferred/sold(?) to a collection agency. I have never fallen behind on payments so I have never had anyone at my door. There is still so much outstanding because the repayment amount is relatively small.
Sara (Debt Camel) says
If you look at your credit record it should show
(a) who currently owns this debt – it makes a difference if the debt has been sold or is being collected on behlf of the original creditor, you need to know this.
(b) if there is a CCJ. ALthough there is a chance if you have moved around a lot that a CCJ at an old address it may not have been linked to your new one.
A write off is very unlikely. But you may have other options depending on the the answers to (a) and (b).
Martin says
Thanks for your help. I have just used Experian’s paid service to check my credit report. Apparently I have a credit score of 992, I have zero “adverse events” on record, and no CCJ. All my previous addresses and bank accounts are on record, apart from the original account which the loan was issued on. That account was closed by the bank shortly after.
The original creditor was TSB, who passed the debt to a company called APEX, who then passed the debt to a company called Capquest (arrow global).
I don’t know how to find out who currently owns the debt.
My concern was that I have been given a loan with no means to pay it back, and I am on record claiming JSA at the time. The creditor obviously didn’t do any checks and just handed me the money without any resistance. I thought that alone would be enough to get it wiped?
Thanks again
Sara (Debt Camel) says
So you are cuurently getting letter from Capquest/Arrow I assume.
You are talking about making an affordability complaint to TSB, saying they didn’t properly check that you could afford the loan. See https://debtcamel.co.uk/refunds-large-high-cost-loans/ which explains about these complaints.
BUT because this is 10 years ago, you are pretty unlikely to win an affordability complaint. TSB may simply have no record of your original application, what you said and the checks they made. It is very hard to win this sort of complaint about such an old loan. TSB will reject it and the Finacial Ombudsman may refuse to take it as it is over 6 years old.
ALSO if you win this sort of complaint, the interest is removed but the loan is not wiped. From the figures you gave, you haven’t yet repaid the 7k you borrowed, so there would still be a balance left.
So what are your other options…
First you will not get bailiffs coming round unless Capquest first go to court for a CCJ. It may be you are just getting bluffing letters at the moment.
You need to look out for receiving a Letter Before Action/Claim – the title may vary but this letter is described here https://debtcamel.co.uk/letter-before-claim-ccj/ and it will have had some papers attached including one headed Reply Form. This is the prelude to court action, if you get one don’t ignore it! But if you haven’t had one, letters about bailiffs are just bluffing.
And look out for a Claim from the court. See https://debtcamel.co.uk/court-claim-form/. But you shouldn’t get one of these unless you have ignore the previous Letter before Claim.
Read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ and think about asking Capquest for the CCA agreement. (NB you ask whoever is currebtly writing to you. Not TSB the original creditor. and note you have to send a cheque or postal order for 31 with your request and you the template letter suggested. don’t make up your own words or try to do this on the phone.)
If they can’t produce a CCA agreement – and for a 10 year old debt that may well happen – then the debt is unenforceable in court and you can simply stop paying them anything.
If they do produce the CCA agreement, then I suggest you offer them a token £1 a month and send them evidence that you are out of work eg a screen shot of your Universal Credit claim.
National Debtline on 0808 808 4000 can tell you more about CCA agreements – it is their template letter I suggest people use.
Martin says
Thank you!
hayley says
Hi how old does the debt need to be before you don’t have to pay it as I have quite a lot of debt but I am only getting a small amount of money each week
Sara (Debt Camel) says
Hi Hayley,
There isn’t a simple answer.
How old are your debts, have you been making payments to them and what sort of debts are they?
SS says
Hi,
I’ve been written to and told my this
‘Due to your personal circumstance, it has been agreed that your outstanding loan of £____ will be written off and your credit file updated accordingly.’
Are they still able to sell this debt on? I can’t get in touch with the company as they’ve gone into administration and their phone line is perpetually engaged. I’m worried they will sell it on without my knowledge and then a CCJ taken out, they don’t have my current address so not sure what to do.
Thanks,
S
Sara (Debt Camel) says
Who is the lender? Have they updated your credit record to say that the balance owed is zero?
Abbie says
Where do we stand with car finance for a car that was sold by a dealership with severe issues which has put our safety at risk and now left the car in drivable??
Sara (Debt Camel) says
Talk to Citizens Advice – this is a consumer complaint.
Sharon says
Hi my mum got a car on finance from Cars2 she took it over five years and paid the first three, she gets contacted by them regularly to come and have a look at getting another car, she took the car back in and swapped it for a different one 18 months ago but the five years finance started again with this second car so she still has three and a half years to pay, it is costing her over ten thousand pounds for this second car but it’s only actually worth two thousand max, she is 78 years old and has Alzheimer’s, I am worried about what will happen with this debt because although she is still paying the monthly price of £160 she should not be driving it, any advice would be greatly appreciated x
Sara (Debt Camel) says
Can she afford the monthly payments?
does she agree she shouldn’t be driving?
do you have power of attorney for her?
Sharon Shepherd says
She gets low rate attendance allowance, and guaranteed pension credit, so she gets enough to pay the £150 odd a month yes, but she does have all other household bills to pay too, she believes she is ok to drive because she lives in a rural area and doesn’t want to give up, and I’ve only just applied for power of attorney so that is ongoing.
Sara (Debt Camel) says
I am sorry but the main problem would seem to be whether you are going to say that she has to stop driving. This is a complicated personal decision rather than a debt problem. Perhaps you could go with her to her GP and discuss this?
If she is happy to give up the car, or if you feel she is so unsafe that you are prepared to force her to stop driving, then one option may be to Voluntarily Terminate the car finance – National Debtline can explain how this would work, phone 0808 808 4000.
Chris says
Hi. I’m 38 and have autism, depression and anciety, and have struggled with debts since I was 18. Autism makes me very impulsive and I find it difficult to realise my actions have consequences. I’ve been on benefits most my life, and have only had 3 jobs, the longest lasting 10 months, due to being unable to cope with work. Should I try getting my debts written off? I’m in about £8k debt, and being chased by multiple collection agencies etc, I’m never going to be able to pay them. Any help would be appreciated.
Sara (Debt Camel) says
How old are these debts? What sort of debts are they?
What is your housing situation?
Chris says
They are from the past 12 months. I had £900 debt before that and was struggling, and was given advice from a council floating support worker to get more credit cards to transfer the balances to 0% cards, but ended up just spending on them. They are mainly credit card debts, and a bank overdraft. I live in a housing association flat.
Sara (Debt Camel) says
After so short a time I suspect there is very little chance of getting them all, or even most of them, written off. You could have a stressful time trying to resolve this and not achieve enough to make a real difference to your situation.
I suggest you talk to National Debtline on 0808 808 4000 about a Debt Relief Order instead. from what you have said, you are very likely to qualify. That is a firm of insolvency and would write off your debt after a year, during which time your creditors are not allowed to chase you and you don’t have to make any payments.
A DRO would wreck your credit rating for 6 years – but in your situation that can be seen as a plus point as it will make it MUCH harder to get any credit, so minimising the chance of impulse sepnding leading to more debt problems in the future.
Marie H says
Hi
I was allowed to take out a loan over draft and multiple credit cards all in the space of a few months. I was addicted to online gambling and it got out of control. I’m in about £18,000 worth of debt. They have all been passed onto collectors. I have been paying these debts off each month totalling to around £125. After being furloughed, I have returned to work but my hours have dropped meaning I will loose £200 a month on my wages. I will not physically be able to make the payments.
What can I do.??
Sara (Debt Camel) says
How long ago was this episode? How many months?
Are You buying or renting?
I knit this asking you to Predict the future, but do you think your income will go up again within the next 6 months?
Sharon Shepherd says
My mother found out the other day that she had been made the sole executor of her recently deceased partner, he owned his home but he had a car on finance with over £9000 still owing, and an M&S loan of over £1200, we are not sure but have been told by a relative of his that he took out equity on the house, can I ask how do we find out if he did take this lean on his home out and if any of his debts can be written off, we contacted the car company and they have said that they are only giving us a week to pay that off.
Sara (Debt Camel) says
Is your mum a joint owner of the house? Does she live there?
Sharon Shepherd says
No she lives in a housing association house alone, he bought his home 40 years ago and paid it off but in 2014 he took out £30.000 equity on the home, I’ve since found out that in 2019 this figure went upto nearer £50.000 because it adds nearly £250 a month in interest so I’m not even sure if there will be anything to come for her from his estate, because as I mentioned before he also had a loan and a car finance which I’m not sure what to do about because I or her can’t afford to pay for his debts
Sara (Debt Camel) says
I think your mum needs some advice on this urgently. I can give you some pointers but can’t help with advice.
– She is not a obliged to pay for his debts at all, they have to be paid from his estate. So she could for example tell the car company they can have the car back, the estate may still owe a debt for this.
– If your mother does a search on the Land Registry (use the gov.uk site https://www.gov.uk/search-property-information-land-registry not ones that try to charge a lot more!) she may be able to see if there are mortgages or charges over the house
– If there really is going to be no money at the end (or very little) she could choose to refuse to be the executor, see https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/#if_you_are_an_executor_and_you_do_not_wish_to_act. But this needs to be done very soon which is why she needs advice now. Tell her to talk to Citizens Advice.
Catherine says
Where can I find out the information? In October of 2006 I was 22, Russian student working in UK and bought in London 3 phones on credit, with a total cost of 1000 pounds. Are there any databases on debtors? How do I find out if I am a debtor in a Bank or with collectors?
Sara (Debt Camel) says
Those are very old debts and you are not in the UK. It isn’t clear there is anything to be worried about unless you are contacted sbout them – which gets less likely with every year that passes.
Catherine says
I’m goining to work in UK in 2021. I’m worried whether will I be allowed to leave the UK. Will I be able to get through the passport control without any problems? In 2006 I had another surname, now I’m married and I’ve changed the surname. But still I can be stuck at the border because of debt or not?
Sara (Debt Camel) says
Debts are a civil matter. you will never be stopped at a border because of them.
Catherine says
But still… Maybe there some services in UK to find out the information about my debt. I would be very grateful if someone helped me. I can give my personal information…
Sara (Debt Camel) says
You could pay a solicitor. But I really suggest you don’t, those are small and very old debts. You may never hear anything more about them.
You can talk to National Debtline if you feel uncomfortable with this and see what they say: https://www.nationaldebtline.org/contact-us/
Ann-Marie says
Hello due to my daughter passing away in November I had to apply for a top-up of universal credit, on doing so I was awarded an unbelievably small amount, but instead of receiving this I was informed I had to repay a loan I had taken with the social fund department some time ago…..this loan was in 1998 and I have been working ever since, as a result of this they are taking two thirds of the money I am supposed to get to pay off this loan, the problem is I have no memory of this and they tell me I don’t have an argument against paying it back. So my question is are they right?
Sara (Debt Camel) says
Can I suggest you talk to you local Citizens Advice about this? They can help you look at your benefits situation as. Well as this alleged old loan.
Anthony says
My wife and I have separated after I went through a harassment case in my workplace in 2018. I have tried suicide a few times and even got detained under the Mental Health Act. This forced us to sell our main residence that we were underwater in to the tune of £30,000. We now have creditors chasing us for repayments. Few questions.
We moved into a rental property we owned but has very small amount of equity. Can I possibly get the debt written off as I am medically unfit for work?
Can we be forced to sell our current home to repay the debt.
Sara (Debt Camel) says
What a dreadful few years for you.
How large are your other debts in addition to the 30k mortgage shortfall?
When you say “we”, is this you and your ex? Are you living in the same house? Are you both joint owners? How much equity is there?
Louene says
Hi Sara,
I had a long drawn out battle with Shop Direct over the default date which they applied to my account in Nov 2017, nearly 8 years after I first entered financial hardship. I chose to make SD aware of my mental health problems in 2012 so I was surprised to receive advice from National Debtline that I should ask SD to consider writing off my debt due to the length of time I’d been making token payments, my mental health and my personal circumstances being unlikely to change.
After getting nowhere with SD, I took the matter up with the FOS in 2018 and in Dec 2020, the final adjudication instructed SD to back-date the default to March 2014 but not to write off the debt. Despite this, SD didn’t back-date the default date despite sending me a letter to say they’d done so and now, after going back to the FOS 3 times, SD no longer appear on my credit reports. However, I have just received a letter from SD telling me that they are closing my account, clearing the balance and will be reporting this as partially settled to the CRA’s.
Can they repopulate my credit reports in this way? Does this mean I will have to wait until 2027 for this to drop off my files?
Please help, I’m having kittens over this!
Sara (Debt Camel) says
The debt should not reappear on your credit record. If it does, object and tell FOS again…
Louene says
I have already been in touch with the FOS about this in order to get some clarity from them about SD reappearing on my credit reports however it appears they are washing their hands of me – see below. (I am not sure why they have chosen to call it a loan when it was a mail order/catalogue account.)
“You are correct that your account will remain on your credit file until March 2027, six years from the date the business wrote off your loan. But without this write-off, the account would have remained on your credit file forever, or six years from the date you repaid it, if you were ever in a position to do so. The backdated default alone wouldn’t have removed the entire account from your credit reports as it was still open, only the fact it ever defaulted was removed.
Every financial business is legally required to accurately report the status of any form of borrowing to the credit reference agencies. I appreciate the impact this account will continue to have on your credit file, but as Shop Direct have now reported it the way the ombudsman ruled, there is nothing more they need to do.
I consider that Shop Direct have fully complied with the ombudsman’s decision. The ombudsman’s final decision marks the end of our involvement in a complaint so I’m sorry, but there isn’t anything further the Financial Ombudsman Service can do.”
What should I do if SD does reappear on my credit reports?
Sara (Debt Camel) says
Well let’s see what happens.
Louene says
Ok, thank-you.
Rachle Davenport says
I only oh 100 70 pound can you help me
Sara (Debt Camel) says
who do you owe this to? is this you only debt?
Sarah says
I had a loan with 118 money and after filing an affordability claim they told me they would write off the interest of the loan due to ‘a technical issue we are unable to view the credit file that was used to make a decision on this application’.
They also go on to say ‘ although the interest has been removed from the account, this does not take away from our rights to escalate the account for further action in future should we feel that it is appropriate to do so’.
I’ve just paid my final payment but does this mean they could change the decision and get me to pay the interest back at a later date?
Sara (Debt Camel) says
No!
Bilqis says
Hi Sara.
Is there a way of removing a satisfied CCJ from 2018 and an unsatisfied default (£1600) from 2016? Both were a result of my being in an abusive relationship where I was pressured to take out debts in my name. I have been divorced since 2017.
Also, my current account was changed to a basic account back when I defaulted on my loan.
My credit record is now at 708 from 360 a few months ago after I managed to get some credit cards and pay off monthly in full. My credit limit is £9000 on total, with a further £7000 credit limit on store cards.
Now that I’m a single mother I want to repair my credit record as much as possible to be able to get a mortgage.
Sara (Debt Camel) says
There are a couple of routes you could go down.
Asking because of the abusive relationship may work but may sometimes be very hard unless you have any evidence of this. (NB I am not disputing it happened, I am being realistic about what you may have as evidence.)
The other approach is if the credit was “unaffordable”. credit is only affordable if you could repay it and still pay your other debts, bills and living expenses without having to borrow any more…Using that criteria, do you think these two debts were “affordable”? If they weren’t, you can make a complaint and if you win it, your credit record should be cleaned.
Sara (Debt Camel) says
I suggest you go to your local Citizens Advice and ask them to write the letter requesting a write off – they may have more luck than you. Tell Citizens Advice that you have no idea what the debts the CCJs relate to and you have only been paying the 31 a month as you are very stressed. But say it is now difficult to afford even that.
Why would you offer them £600 for these very old debts you aren’t even sure that you owe? That would pay the £1 a months for 25 years…
Sam says
Sara,
Thank you so much.
You right.
Will get in touch with my CAB about it
Regards
Sam
Amelia says
Hi Sara,
I took out a mobile phone contract under duress for my abusive ex partner in 2015, I managed to leave in 2016 had to move and relocate as per advice from police and other agencies dealing with me. In that time he stopped making payments, and the account went into default and I completely forgot about it, and having to move around with my children I didn’t even realise this debt became a CCJ in 2020. I only found out once my credit limit on my credit card was decreased from 3500 to a 100 and I was advised to check my credit report. . I have proof of the abuse. What are my options here.
Sara (Debt Camel) says
Very sorry to hear this – especially as it may have brought back memories you thought you had put behind you.
Can I ask who the creditor was that obtained the CCJ?
Amelia says
The ccj was obtained by lowell.
Sara (Debt Camel) says
do you have an email address for them?
Amelia says
Hi Sara
I don’t have an email address for them or any information except what I obtained from my credit file
Sara (Debt Camel) says
Ok does it say Lowell or Lowell Solicitor?
Amelia says
I contacted the court this morning the claimant is lowell portfolio Ltd and the solicitors dealing with the case were Overdales solicitors.
Sara (Debt Camel) says
I suggest you email Lowell (support@lowellgroup.co.uk) and make the following points:
1) you were a victim of abuse from your ex in 2015 and this relates to that so you would like it to be passed to lowell’s Vumlnerable Customer team for consideration
2) you have just found out that lowell have obtained a CCJ in 2020 relating to a sdebt that was in your name. Give the details of the CCJ. explain how you have just found out.
3) give the history of this debt. Explain that you have evidence about the abuse if theu would like to see it.
4) ask for Lowell to write off this debt because of the abuse. Say you would like the CCJ set aside [that is legal jargon for removed] as it is u fair that your credit history for 5 more years should be harmed by this old abuse.
Let me know how this goes?
Amelia says
I have sent them an email. Hopefully they respond soon. Will update once I get a response. Thank you Sara for time and effort.
Amelia says
Hi Sara
Update….
I contacted Lowell and submitted the CPS case letter and the 5 year restraining order I received paring my ex-partner from contacting as evidence but they got back to me stating this
” As previously advised, we can investigate this further for you and we may be able to take steps to remove the CCJ however we need more information about the situation as we would need to evidence this to the court.
Alternatively, if you don’t agree with the CCJ, you may be able to apply to cancel it by completing an N244 form and returning it to the court. This is known as ‘setting aside’ a CCJ. You may wish to seek your own independent legal advice.”
I’m not sure how to handle this do I keep providing further documentation or just apply to set a side the the ccj. My worry is they might use my evidence to fight the ccj.
Many thanks
Sara (Debt Camel) says
Several thoughts:
What is your current financial situation? If you apply through a N244 form, there is a fee of £275. Though you can get help with this if you on a very low income or all benefits.
A set aside just deletes the CCJ – it is common after a set aside for the creditor to then just start again going for a new CCJ… so you really do want Lowell to agree that there should not have been a CCJ.
Also I haven’t come across a set aside application from the victim working in this situation – I am not saying it can’t, just I haven’t seen one.
Is your request being handled by Lowell’s vulnerable customers team?
Amelia says
I’m told my account is being handled by the customer support team when I quired this I was told they deal with vulnerable customers. I just spoke to them and just state they need further proof of the abuse.
Sara (Debt Camel) says
Well that isn’t helpful, is it. I suggest you reply in writing (ie by email) saying that they need to be more specific about what additional evidence they need. And point out again that this was a long while ago and you have moved several times.
Michelle says
Hi,
I have a few mental health issues with medical evidence – I have 2 unsecured loans that I was going to try and approach the creditors about writing off (one is Halifax loan £12,700 and the other is Shop Direct £4700). My question which I cannot seem to find an answer to – I am a homeowner with a joint mortgage. Will this put a spanner in the works? Can they seek a CO if the property is in both names?
Thanks
Sara (Debt Camel) says
Have you defaulted on these debts? Are they the only debts that you have apart from the mortgage?
If you have defaulted, have the debts been sold to a debt collector?
Are you in work at the moment?
Your mental health problems – do you feel they caused you to borrow the money? Or do your problems make it very hard/ impossible to repay it? or both?
How long ago did you take out the Halifax loan – it’s large, do you feel that at that time Halifax should have realised that you would find it difficult to repay? Was Halifax/Lloyds your bank and did you also have an overdraft when you took this loan?
Shop Direct – did they increase your credit limit when you were only making minimum payments?
Stacey says
Hi,
I was in an abusive relationship (financially, physically and emotionally) 3 years ago, he pressured me into getting a loan that my bank offered me but I didn’t really want to accept. It was £35,000 and I was quite surprised they offered me it as my outgoings were more than my income, anyway we separated two months later and there’s been a huge court case ongoing for the past 3 years against him, what he put me through I was unable to work initially when we broke up and I fell behind with loan payments, they then passed this onto to a creditor, my mental health is very up and down and sometimes I’m not even able to do more than one day in work so having the stress of the loan on top is having an effect. I don’t think I was in any right frame of mind when I took the loan. Could I fight for this to be written off ?
Sara (Debt Camel) says
can you say more about the court case?
do you have other debts as well? are you buying or renting?
S Clarke says
I was 19 when I took out 2 loans with HSBC (total of £21000). I had been employed for about 4 months and my loans were approved. In December my hours were reduced and I could not meet repayments. I then got another job but salary was much less then in June 2023 I broke my back in a car accident and did not return to work until October 2024. I cannot currently afford repayments. My question is was the bank irresponsible in approving a loan for me at 19 years old and with only a few months full time employment behind me?
Sara (Debt Camel) says
How long ago were the loans taken out?