Debt Client Gets Debt Written Off

Advice NI's Debt Service helped have a clients debt written off. Here's the case study:

Client had lost her job and been made homeless. She had been living on the street before being admitted to a mental health facility where she was received support for very serious mental ill health for six months. When she contacted Advice NIs debt service, she was in supported living accommodation.

The client owed £3800 in credit card debt, which had been passed to a Debt Collection Agency who had been sending numerous letters and contacting her by phone. The impact of the debt collection process caused stress which severely impacted on the client’s mental ill health.

Our debt adviser got a Debt and Mental Health Evidence form completed by the clients support worker. Evidence in the form clearly outlined the client’s inability at this time to set up and or keep to any sort of debt repayment option. When this form was sent to the Debt Collection Agency they stated that they were not taking the form into consideration.

Our debt adviser contacted the original creditor directly, and asked about their policy on vulnerable customers. The creditor responded to say that recovery action on the client’s debt would be put on hold for 6 months.

After 6 months our debt adviser contacted the creditor to inform them that the client’s situation was unchanged, and the creditor decided to write off the client’s debt. This outcome had a positive impact on the client’s mental ill health, by removing the financial stress she was having to deal with.

For anyone struggling with debt or mental health issues please contact us at 0800 915 4604.