bank mistake?!!

[divine]

A friend of mine had a current  account with a well know bank with an overdraft facility, and payment protection. He was involved in a serious motorbike accident and was in a coma for 2 weeks, but remained in hospital 150 miles away for months. During this time SO / DD went out of his account and exceeded his overdraft amount. He had his mother as his next of kin but the bank refused to deal with her, saying they needed to see him in person. But how the hell could he if he was in a coma and in hospital for months. This was in 1996 and is still receiving letters from debt collectors for the sum owed. Surely the debt should be void by now as it is over 8 years!! Can someone enlighten me on this matter!!!

[scorpio61]

Hi Divine

Sorry to say that if they are still in contact with him then the debt is still valid. I believe that if there is no contact for 6 years then there may be a case of the debt being "buried" for want of a better word. If your friend is still being hassled by creditors then he can have a look at our website www.chambersmoore.co.uk as there may be some useful tips for him there, failing that he can call our free phone, and don't worry, we don't charge for giving information.

 

[divine]

thanks Mr Whyte... but they havent actually contacted him... he moved address and only 1 letter has been sent there in 8 years.

[Sammy Snake]

divine,  can you clarify please, you say in the original post that he is still receiving letters from debt collectors but in you answer abovem you say they haven't contacted him apart from one letter.  We will need to know this to be able to offer the correct advice.

As for Bank's not dealing with his next of kin, this is normal.  There are numerous fraudsters out there that will try every trick in the book to get access to other peoples accounts, this includes claiming that their child/husband/wife is in hospital/abroad etc etc.  I know in this case that it was genuine but unfortunately there are rules and regulations.  Was any paperwork offered to the bank to prove his incapacity?

[Mrs_Pegasus]

Banks will often sell the debt to a private debt collection company for �'s and in theory clear it from their accounts.  However, this company can legally continue to chase for the funds, they have in effect bought the debt.

I would recommend your friend, contacts the company and ask for the proof, the chances are they wont have it because the bank cant actually give details of an agreement without your consent!  These companies buy 100's of debts every year and if only say 30% pay up without challenge it will be worth it to them to keep pursing.

I cant believe no-one thought to get a letter from the hospital to support the fact he was unable to speak with the bank.  I am assuming he wasnt working or his money would have continued to go into the bank and therefore pay the bills??

[stevie21]

It's not really the type of thing that first enters your mind when a loved on is in a coma but if the comatose person is the sole owner of a personal account then only he/she is legally permitted to access it.
Banks can only accept legal documents to counter this (court of protection order, power of attorney) rather than heart wrenching tales of woe.

Although relatives might try to sort out the account out of kindness or whatever, the fact remains that the bank are obliged not to act on their authority unless they have some kind of legal access to the account(s).


Finally, if he was in hospital "for months" why hasn't this already been resolved after 8 years? Did someone try my trick of "ignore it and it'll go away" ??

[Solarjunkie]

There is a thing called an Enduring Power of Attorney that lets a named person take over the affairs of someone else if the need ever arises. For example, someone may be ill or abroad, but a trusted relative or friend can still deal with their affairs, and this continues if they die.

My point being, it has been suggested that everyone over 18 has one of these, in case such unexpected cicumstances arise.

You can get a form at W H Smith, by the way.