A FUND was set up today to help a pensioner pay a £100,000 medical bill she received after being diagnosed with cancer abroad.

Phoebe Morley, 76, was on holiday in Orlando with second husband Peter and daughter Michelle when she was diagnosed with cancer of the kidney and bowl.

But her insurers refused to pay out, saying that she had failed to declare an illness of gallstones.

It left the family desperately trying to raise cash to get her home.

A £16,000 donation was received from the 19-year-old Prince of Dubai to fund an air ambulance to get her to Manchester.

But now the family have launched a fund-raising campaign to meet the £4,000 outstanding for the air ambulance bill.

They still risk losing their house to meet an estimated £100,000 in medical costs in America after her insurance was deemed void.

Phoebe was struck down with gallstones in the second week of her holiday but doctors at the Florida Hospital in Kissimmee revealed she was also suffering from cancer.

Husband Peter Morley, 60, of Ewood, Blackburn, described their ordeal as an "absolute nightmare".

Phoebe is still too weak to receive any chemotherapy sessions for the cancer and is undergoing treatment to reduce her heart rate and fight a virus.

He said: "We might have to cash in the deeds to our house to meet the £100,000 medical bill. I have had to get an overdraft at the bank but this kind of money is astronomical.

"It has been an absolute living nightmare. "

Peter said the couple were seeking legal advice and were in negotiations with a lawyer from London who might fight their case.

Phoebe's daughter, Susan Wilson, of Pendle Drive, Blackburn, said the family were "sticking together like glue" as they faced the mounting bills.

"The American hospital are being very good and have agreed to receive payments in bits but people are really starting to chase our heels now.

"We are taking the insurers to court but we need to keep up with payments, even if its just a gesture. We desperately need some money to come in.

"We don't really know what to do and are still coming to terms with everything. But mum is getting weaker and weaker."

Long-standing friends of the family at the Morris Car Club have set about raising funds.

David Harris, North West secretary of the club, has organised a raffle and poster campaign at the annual international rally in Nottingham in August.

David said: "We are having this raffle as we have to keep this story in people's minds and there will be hundreds of people from across Europe attending.

"The club is about helping friends out in their time of need."

Donations for the fund can be made to the family at the TSB Bank in Lord Street West, Blackburn.