Getting Banks to Waive a Credit Card Debt

Hello,

Im trying to help out an old pensioner I know who has had a Credit Card with a big4 bank that’s been maxed out for years costing him a fortune. He is hopeless with money and hoping to get some ideas to help him get out of this debt (no negative comments please about self responsibility, I think he spent the money on medicine). He has had the card 10-15 years and got it in the days when they sent out offers ‘sign here for a card’. He then accepted a number of ‘sign here’ to increase limit until it got to about $11k. He has never had any assets beyond a cheap car. All this time he was on pension so never has been capable of actually servicing if the banks did a proper assessment. I would also note he has been sick for many years (I think Dr’s keep telling him he has a few years left, for the last 10+ years).

One idea is if he (or someone on his behalf) contact the bank and make the case that this card should never have been approved, proper checks were not done etc. What are the chances of getting the debt waived? Also what are the chances of him getting his interest payments back (probably more than the card limit)?

Would it be better to get him to talk to a ‘debt help’ line or service (if he will) and get them to contact the bank for him?

If he just told them he is no longer paying what will the bank do? Would they bankrupt someone old and sick for 10-15k? Would they try to take the money from his estate (not that he has anything of value but worried about this)

Any other ideas most appreciated

Thanks

 

Call the National Debt Helpline on 1800 007 007 to talk to a free financial counsellor.

 

Can he make a small offer. I have helped a few in the past and if no assets and no hope of recovery they will likely accept a offer of about 10% of the amount owing - maybe less.

 

Thanks for your reply. Certainly a possible angle to take, potentially as a fallback after trying to get the whole lot back . Is it not worth him looking at the angle that he should never have been given the card? Given its a big4 they seem to care a bit more about their rep?

 

Yes why not. Just emphasis he shouldn’t have been given it, and he will likely be tipped into bankruptcy because of this debt.

 

Could be something for the banking ombudsman or legal aid to deal with.

 

Nothing to really add except a Thankyou to you for trying to help him. I hope the bank can waive all or most of the debt, you can’t get blood out of a stone anyway.

 

Makes sense why he was always short of cash, i thought it maybe Nifty or some other payday lender, this isnt quite as bad. Pride is the issue, should have bitten the bullet and dealt with if 5 years ago. I wonder how many old ppl are in similar position due to not want to ask for help.

 

Makes sense and a very good question. It's great the easy limit increases by banks are a thing of the past, but you're right, there will be many others caught in this trap and people around them don't know about it.

 

A payday lender is probably the worst thing to do. If they can, they'll take a chunk of his pension before he ever sees it. Their charges tend to be higher than interest ever would be.

 

The affected person should really be dealing with a licensed "financial counselling service". They know how to dance and you dont. Salvos and many other community and charitable agencies have such services. The matter crosses into legal territory too since legal dispute is often a part of having a lender deal with the debt. Also avoid credit repair firms who offer such services as they do it for hefty fees. The financial counselling teams know people and do it often. They can cut through layers of bank staff.

AFCA cant assist until resolution directly has failed.

The fact the debt relates to a time when they may have been able to take the credit and that THEY paid for matters on the card may be beyond the scope of dispute. That like arguing a hotel made you drink drive.

The other option if he has NO assets beyond furniture etc may be to service the card and then die with the debt. The lender would then write it off. That isnt suggested if he has any property