A family member recently passed away suddenly with an outstanding balance on their personal loan a/c of £2,000, £400 in their current a/c and £500 in their savings account

DWP have contacted me to inform of an overpayment of pension credit of £200 which of course must be repaid

Next of kin has been in touch with RBS bereavement service, whom claim they can take the £900 in the deceased's RBS a/c's against the outstanding balance of the loan

1. Is this true?

2. What happens to the remaining balance of the loan?

3. Should we inform RBS of the DWP overpayment? &

4. Can the DWP overpayment be taken from the £900 in credit?

Advice appreciated

Hello there. I'm sorry to hear about your loss.

Is the loan in the sole name of the deceased? And are there funeral expenses to take into account?

Have you looked at whether there was any PPI with the loan?

HB

Honeybee13, thanks for your prompt reply

Yes, the loan is in the sole name of the deceased. A memorial fund has been setup to cover funeral expenses. I have looked and there does not appear to be PPI on the loan

My OH had the same thing when he dealt with his father's estate. RBS are not entitled to just take the money.

People with more knowledge than me should be along later.

HB

A family member recently passed away suddenly with an outstanding balance on their personal loan a/c of £2,000, £400 in their current a/c and £500 in their savings account

 

DWP have contacted me to inform of an overpayment of pension credit of £200 which of course must be repaid

 

Next of kin has been in touch with RBS bereavement service, whom claim they can take the £900 in the deceased's RBS a/c's against the outstanding balance of the loan

 

1. Is this true? Yes its known as offsetting when the accounts are connected with the same banking group...but they must inform you and ask if you have alternative means

2. What happens to the remaining balance of the loan? The bank will have to write it off if there is nothing left in the estate.

3. Should we inform RBS of the DWP overpayment? & Not yet just pay it fast before they grab theirs

4. Can the DWP overpayment be taken from the £900 in credit? Yes ...you can do it by switch if you have the facility and the account is still open.

 

Advice appreciated

Regards

Andy

Many thanks Andy/Honeybee,

I suspected as much that RBS can take the money. Difficulty is, next of kin has not yet been granted control of the bank a/c's so we cannot touch any of the money

My thoughts are to inform RBS of the DWP overpayment and instruct them to make the refund, or at least freeze that money until next of kin has control of the a/c's

Suggestions welcome

Thats why it always pays to inform the bank last..then the executor have access to funds until probate is agreed.

I dont think DWP can reverse...they will require a payment.