Littlewoods refused payment plan...

[wetwipesareus]

My Dad is 85
He and my Mum had a littkewoods catalogue.
They paid £150 a month
My mum passed away and Dad had to pay for funeral (mum had no insurance )
So now he just has the one pension and they have stopped his pension credit as he is slightly over the threshold.

I wrote a email to the specialist department explaining mum died and he could no longer afford the £150
I asked if we could set up a p/p for £80 a month
They said no
This was their reply

Would he get into trouble if we just pay the £80 a month ?
He's never missed a payment in 20 years

The end said would you confirm your happy to continue paying the £150
This was after I explained he couldn't afford it/mum died /funeral etc

Escalate it. Ask to deal with a Manager.

Otherwise there should be charities that can assist you in getting them to agree.

I'm not sure they would help
As he only has a littlewoods catalogue
No other debts
I read you needed £10,000 of debts
He has £2,800 on this catalogue

Was the catalogue in your mum's name only? Did she leave an estate?

When you say you read you need £10,000 of debts, what do you mean? Stepchange will help for free no matter how much debt you have.

If he pays less than they're asking then it will eventually be passed onto a debt collection company. That's possibly not as bad as it sounds - it will mean he can no longer use the account and they might add charges, however they are also likely to agree to a reduced payment.
I would suggest contacting somewhere like Citizen's Advice or a free debt charity - they can help prepare an income and expenditure and work out what he can afford, while also being able to live (I realise you can maybe do this too, but it's amazing how an official agency intervening often makes them more cooperative).
Good luck.

Use the words "vulnerable customer"

Is there any way some of the stuff that was bought can be returned or sold on so that the debt can be cleared. £2800 is a lot of money to have hanging over you and the interest rate will be high I expect.

Speak to citizens advice they can help with this

The problem is the interest rate on these catalogues are normally around 35% upwards.
Is there any other way of clearing the debt, such as a credit card with balance transfer etc.
can you sell anything to release cash and start clearing it?
is the account joint names? As if it's just in your mums name I don't think your dad is liable?

Its probably because £80 may not even service the interest so he would only get further and further into debt. Can you look at the interest rate being charged and work out an amount just a little higher than the monthly interest and suggest this as a repayment figure? that might be less than £150 even if more than £80

Definitely google your local Citizens Advice or use Step Change because these organisations have tons of experience dealing with creditors and negotiating payment plans.

If your Dad would benefit from an advisor coming to his home, Christians against poverty may be a good option. They do not proselytise and you don’t have to be a Christian to use them.
https://capuk.org/get-help/cap-debt-help

Surely it would be cheaper to get a personal loan if possible. The repayments wouldn’t be as much as he’s paying back currently.

Is the account in your father’s name?
If it is in your late mother’s name only, your dad may not be liable for the debt if your mum’s estate did not leave assets to cover it.

The problem here is that the interest rate on the outstanding amount will be so high that £80 a month would take years and years to clear it. At 85 it’s highly unlikely it would be cleared by his death.
I second asking Stepchange for advice.

Could you lend him the money to pay it off and let him pay you £80 a month? If you don't have the funds could you put it on a balance transfer card or take out a loan, this is what I'd do for my Dad.

This.
This was my first thought, it’s a lot of money if you don’t have it but not that much in the great scheme of things.
I would certainly be looking to pay the balance for him if I could even if that meant taking out a small personal loan.

A bit personal, but could you afford to pay it off on a 0% credit card, and your Dad could pay you 80 a month?

Littlewoods don't charge interest unless it's bnpl. It's not very. What the Balance is, is what the Balance is and even then the interest is a fixed amount with bnpl

Could you maybe not help OP with the difference?

Just reply and say no. Not happy to keep paying £150

Say it doesn't fit in with your repayment system 🖕

Whose name was the account in before your mum died? If it was just in your mum's name your dad doesn't have to pay it at all, it dies with her (albeit any debts should have been paid out if her estate if she left anything at all). If the catalogue somehow touched your dad into putting it in his hand the a strongly worded complaint would be coming. My mums just been tricked similarly by a utility company but that's another story!

This! Companies are not allowed to hound people for payments that they are unable to make.

I'd contact them back, state that your father is a vulnerable customer, ask them to freeze the interest and tell them that your offer has now reduced to £30 per month, as that is all he can afford. If they refuse, raise a complaint. They then have up to 8 weeks to provide a final response. After this, you can then take the case to the financial ombudsman service if you disagree with the outcome, or they've not completed their investigation.

The financial conduct authority introduced new consumer duty regulations in July last year, and this includes vulnerable customers.

Littlewoods did similar to my nan over a washing machine they’d bought before my grandad died. I found them awful to deal with. I eventually got it resolved but I really had to keep explaining the situation over and over again. Their staff didn’t seem well trained to be honest. It did make me wonder about how they treat people that didn’t have anyone to advocate for them.

If it's in her name, he doesn't have to pay a penny !

The estate if there is any money has to pay it, but the can wait

As others have said, it's really important to know whose name the account is in. If it was your mum's account, your dad shouldn't be paying off anything if she didn't leave an estate with money to cover the debt.