CoOperative Bank Unethical treatment?

[debtfreesoon]

For a bank declaring to be ethical, I feel that I am being treated in an unethical way and would like some advice.

In 2011 I entered a DMP paying £300 a month. Payments were made on time and all the debtors accepted it. In the last year, I have had to put a business overdraft onto it as I had to end my main self employment and become a carer for my mum (my health also is not very good and If I could get a job would find it hard). My only income is ESA (which may change to carers allowance)

Late last year I reduced my payments (£150) and again, the debtors accepted it all except the cooperative bank. They are around 20% of my total DMP. Despite me letting them know in 2011 about my DMP, they didn't do anything or call in their overdraft. They are now threatening to take it to court and get a charging order unless I agree to pay £180 a month (which is not possible). I am currently trying to draw on my civil service pension to pay off all my debts, but they still want to take it to court. They have applied any payment that the DMP company have paid but are still adamant on taking it to court. When I was self employed, I didn't contribute (financially) to any bills (including the mortgage) on the home. Can someone advise on where I stand and do you think that maybe I should change to an IVA instead of a DMP. I do hope to be in a situation where I can clear my debts in the next six months (this is dependent on my pension or my husband retiring and helping me out).

Thanks in advance and I hope the above makes sense.

[Debt Camel]

Re: CoOperative Bank Unethical treatment?

Can you say how large the debts in your DMP are? And how large the co-op debt is? Have all creditors frozen interest? Who is the DMP with?

You mention a charging order, who owns your house, just you or joint with your husband? How much equity is there? How large is the remaining mortgage?

How old are you? If you start drawing a civil service pension, would you get a lump sum?

Is your husband in a position to help you, does he have any savings?

[debtfreesoon]

Re: CoOperative Bank Unethical treatment?

Can you say how large the debts in your DMP are? (£26k total) And how large the co-op debt is? (£4200) Have all creditors frozen interest? (yes although still negotiating with Tesco as this was recently added) Who is the DMP with? (currently with Vincent Bond but looking to change to Step Change)

You mention a charging order, who owns your house, just you or joint with your husband? (it is joint but my husband pays the mortgage and has done for 10 year when I was trying to get my business off the ground and become profitable, which it never did) How much equity is there? (quite a lot house value £375-£400k- In 2011 I did try to release some equity with Coop to help with my debts but I am not creditworthy) How large is the remaining mortgage? (£170K)

How old are you? (42) If you start drawing a civil service pension, would you get a lump sum? (I am hoping to so that I can clear my debts. It is a small pension but I can cash it in for one final payment - I'm trying to get it on ill health grounds as I can't do the job that I was then employed to do)

Is your husband in a position to help you, does he have any savings? (My husband is retiring in the next 1-2 years and he will gift me the money to pay, but I would rather clear this debt myself)

I am quite annoyed that the coop would rather go down the court route than wait a few months. I will be unable to remortgage for ages and I won't be selling as my disabled mother lives with us and because I haven't contributed to the mortgage, I don't feel it right to get my husband to mortgage it. I have informed the coop that I am trying to do this, but the people in the office just don't seem to have any empathy or to care.

[Debt Camel]

Re: CoOperative Bank Unethical treatment?

Moving to StepChange sounds like a good move - why pay fees when you dont have to?

quite a lot house value £375-£400k

in that case I don't think moving to an IVA is at all practical.

I am quite annoyed that the coop would rather go down the court route than wait a few months.

It's a business account and they are taking a business decision - they will have had clients tell them the debt will be settled in a few months before and nothing happened.

How much would you get if you cash in the CS pension now? And how much would it be worth later if you don't?

Is your husband well off? What will happen to the mortgage if he retires? Does he have savings at the moment? Because if he has, you could probably get full & final offers on your debts.

[debtfreesoon]

Re: CoOperative Bank Unethical treatment?

my husband if fully stretched financially as he pays all household bills. My pension won't be worth much more if I leave it. My husband will be paying off the mortgage when he retires as he has a pretty good lump sum and pension.

If I don't get my pension payout, he will be getting an extra amount to help me pay off my debts in F&F offers. That feels like a long way off at the moment. My pension may come in quicker as the terms for getting it is because I can't do the job I was employed to do and that is the reason I was let go off 10 years ago (after 2 years of sick leave). Unfortunately, it is taking a while because I am no longer employed so don't have any direct contacts to sort it.

Business decision or not, I am still a human. I'll just have to sit it out.