help for my dad please? nat west loan..

[stokielass]

Hi everyone,i am loving this site..lots of valuable advice so thanks guys!!
I would like to ask advice for my dad,he's not very computer savvy so the job has been left to me.
In 2005 he took a personal loan out with the nat west (he can't remember how much for) and was advised to take out ppi,he asked if he could do this because of his medical history (he's uncontrolled insulin diabetic) and he was assured he could and,if he was taken ill/unable to work the loan would be paid off in full.
In Dec 2010 he was taken ill and spent 3 wks in hospital with complications due to his diabetes and query swine flu which in turn,exacerbated his chest problems and left him unable to work,he's registered disabled due to diabetic neuropathy (he has no feeling in his hands/feet) he is also retired due to ill health and draws state pension and DLA which isn't alot.
In July last yr (2011) he received a letter from the nat west saying that they were no longer going to pay his loan for him and he would have to make the £450 monthly payments by himself,he doesn't get £400 a month to live on. He pointed out that he was told that the loan would be paid off in full,this was denied by the nat west,they stated that no such conversation took place and had no record of it ever happening.
The chap that he spoke to on the phone told him that if he couldn't pay up,he would have to sell his house!!!
since september last year the nat west have been taking £450 out of his current account every month to pay the loan leaving him penniless,he can't afford to pay any other bills,he has asked the nat west why they are doing this but he doesn't get any answers and they keep telling him that it needs to be paid,they are also repeatedly making him overdrawn as they are charging him for returned direct debits,which he would be able to pay if they didn't take all of his money off him!!!
He has 2 months payment left on this loan and the stress of it is making him ill again,he's not sleeping/eating and is worried he will lose everything.
He went to see the CAB who told him to move his DLA and pension out of the nat west into another bank and write to the financial ombudsman,which he has and he is still awaiting the reply,it seems to be taking an extremely long time and in the meantime,the nat west are leaving him barely enough to live on,he has told them about his financial hardship but they really don't seem to care...just wondering if anyone has any advice at all on what to do,he's not disputing the fact the loan needs to be paid off,they've not offered him any help at all..he has always paid his own way,never been in debt in his whole life..and this is really making him ill,he's aged overnight and now looks all of his 67 years and more..thankyou........

[bluebottle]

Re: help for my dad please? nat west loan..

Hi everyone,i am loving this site..lots of valuable advice so thanks guys!!
I would like to ask advice for my dad,he's not very computer savvy so the job has been left to me.
In 2005 he took a personal loan out with the nat west (he can't remember how much for) and was advised to take out ppi,he asked if he could do this because of his medical history (he's uncontrolled insulin diabetic) and he was assured he could and,if he was taken ill/unable to work the loan would be paid off in full.
In Dec 2010 he was taken ill and spent 3 wks in hospital with complications due to his diabetes and query swine flu which in turn,exacerbated his chest problems and left him unable to work,he's registered disabled due to diabetic neuropathy (he has no feeling in his hands/feet) he is also retired due to ill health and draws state pension and DLA which isn't alot.
In July last yr (2011) he received a letter from the nat west saying that they were no longer going to pay his loan for him and he would have to make the £450 monthly payments by himself,he doesn't get £400 a month to live on. He pointed out that he was told that the loan would be paid off in full,this was denied by the nat west,they stated that no such conversation took place and had no record of it ever happening.
The chap that he spoke to on the phone told him that if he couldn't pay up,he would have to sell his house!!!
since september last year the nat west have been taking £450 out of his current account every month to pay the loan leaving him penniless,he can't afford to pay any other bills,he has asked the nat west why they are doing this but he doesn't get any answers and they keep telling him that it needs to be paid,they are also repeatedly making him overdrawn as they are charging him for returned direct debits,which he would be able to pay if they didn't take all of his money off him!!!
He has 2 months payment left on this loan and the stress of it is making him ill again,he's not sleeping/eating and is worried he will lose everything.
He went to see the CAB who told him to move his DLA and pension out of the nat west into another bank and write to the financial ombudsman,which he has and he is still awaiting the reply,it seems to be taking an extremely long time and in the meantime,the nat west are leaving him barely enough to live on,he has told them about his financial hardship but they really don't seem to care...just wondering if anyone has any advice at all on what to do,he's not disputing the fact the loan needs to be paid off,they've not offered him any help at all..he has always paid his own way,never been in debt in his whole life..and this is really making him ill,he's aged overnight and now looks all of his 67 years and more..thankyou........

This sort of behaviour by banks really makes me angry. Unfortunately, the FOS are rather slow in dealing with complaints. It might be a good idea to give your local Law Centre a call. You can obtain free legal advice there. From what you say, the advice of a legal professional would be a must.

[labman]

Re: help for my dad please? nat west loan..

I'm extremely surprised the CAB did not offer to intervene to negotiate a Debt Management Plan. The Lending Code, to which Nat West are subscribed, Section Nine (I think page 28 if I remember rightly), talks about what the bank should do for cases of financial difficulty. It would be worth your while reading it:

http://www.bba.org.uk/download/6673

Any decent debt adviser ought to be able to help. It's a question of whether the bigger debt charities would do this sort of negotiation on your father's behalf. It should not be a complicated matter to arrange a sensible repayment plan.

[Bill-K]

Re: help for my dad please? nat west loan..

Hi StokieLass and welcome to you. I agree with the above replies by BB and Labman - this needs to be properly formalised, it seems - so that the debt as it currently stands is clearly being dealt with, as opposed to being ignored.

Next, I guess we need to look at the PPI, as I doubt if this would be resolved quickly enough to affect the settlement of the loan. BUT - if all that there is left is just two repayments on the loan, then it seems to me that a good plan might be to make sure that these can be made - thus clearing the debt, and establishing some security for your Dad with regard to the vile threat of having to sell his home.

And..while we're on that subject - PLEASE do not let that threat upset your Dad. Sure, take it seriously, but it will take a HELLUVA lot more than 2 defaulted repayments on a LTSB loan to force such a sale.

Eventually, you should - hopefully - get a PPI refund. This will include account interest and compensatory interest. It may also include a 'lump sum' compensation for distress.

Stay positive - for your Dad !!!