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Debt following death.


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My husband died suddenly a month ago at the age of 56.

We have been in a DMP with CCCS since Jan 2006.

I contacted CCCS who asked for a copy of the Death Cert.They have now removed DH's name and debts from the DMP but said the creditors will contact me about his estate.

They have suspended the DMP until September until I can sort things out and contact them for a review. I work and have a pension (I am 54)

 

Now, DH had no insurance. He had taken early retirement because of his health and only worked a few hours a week at minimum wage. His income was about £600 (including his pension).

He had no other assets apart from some new tools which he had been buying following the fire.

We had some money left from a house sale last year but not enough to get creditors to accept a F&F on our DMP so it is sitting in a high interest account which I have now transferred to my name only. Because of DH's surgery prior to his death, we had had to use some of this money towards living expenses.

 

Although I just want to crawl into a dark hole and cry, I am having to deal with this. He had made a will and I am sole executor. Everything was left to me.

We live in rented accommodation and have no assets.

 

Does anyone know what the creditors will do? I have read on a Bereavement Website that there is an order of priority for debts following death starting with Funeral Expenses and ending with loans, credit cards etc.

I have received my bereavement payment of £2000 and am waiting to hear about my application for bereavement allowance.

I am not entitled to any benefits but have got my Council Tax single adult rebate set up.

Will they expect me to sell his tools and give them the money?

 

Sorry this is loaded with questions but I have the memory of a goldfish and the brain of a gnat at the moment.

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Hi PriorityOne.

We each had debts in our own name but for the purposes of the DMP, everything was put on the one plan by CCCS.

Following my own Dad's tragic death 3 yrs ago I had to get my Mum out of debt which I managed fine.

But this is a whole different ball game.

 

I cannot sleep or eat and just don't think I can go through the whole threatening letter scenario again.

 

If the creditors write off my DH's debts, I could offer a F&F settlement figure in the region of 30% of my debt. Some of my debts have just been passed to DCAs and we had each just had a settlement offer from one of them at a 30% reduction on the total amount.

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Thank you again PriorityOne.

I will get the file out and post these up later as I am going to sit in the sun for a bit and try and concentrate on a book.

I have no CCJs. CCCS have sent copies of the Death Cert to all DH's creditors but I had already sent a copy to CL FInance who wrote asking for one. This has since been returned with an acknowledgement..I do send everything by Recorded Delivery.

I will be back a bit later.

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Can't settle.

Have been on CCCS website and they have removed DH's debts so the remaining ones are mine:

 

Credit cards: Payment:(month)

Argos £xxx £ x.xx

Cabot £xxxx.xx £xx.xx

Capital One £xxx.xx £x.xx

Egg £xxxx.xx £xx.xx

Lloyds TSB £xxxx.xx £x.xx

RBS £xxxx.xx £xx.xx

Tesco(RBS) £xxxx.xx £xx.xx

Robinson Way £xxxx.xx £xx.xx

 

Egg Loan £xxxx.xx £xx.xx

 

Until mu husband's debts were removed, we were making a monthly payment to the DMP of £418. This will obviously change and I don't know what it will be until I know what my income will be.

My landlord has said I can stay in the house as long as I want (I have it in writing) even though the house was sort of "tied" and we have been here 10yrs and done a lot to it as the rent has never moved.

Edited by saintly_1
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Hello Nuthatch

 

Sorry to hear about your loss. Did your husband have an active credit card he used, if he did he may have been paying protection insurance on it, so the insurance would cover the amount outstanding if he did.

 

The other thing is, the companies looking for the outstanding balances will probably have added charges to the accounts, which you could claim back to his estate. We can show you how to do that when you are ready.

 

You are in good hands with Priorityone, hope things turn around quickly for you.

All of our cards were cut up when we entered the DMP and we cancelled all the PPI. Also I got the bank charges refunded from RBOS just before the stay.

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Thank you for your replies. I will get my head round this but having a difficult couple of days.

The £418 per month payment was the amount the CCCS came up with based on both mine and my husband's incomes last year when we had our DMP review and included payments to his debts as well.

We did not have bank current accounts. Just basic building society cash account that allows standing orders/direct debits. I also have a Visa Electron.

I have to do little things at once as it is only 3 weeks from the funeral and I cannot concentrate.

I have checked my file and the Robinson Way Debt is for HFC/Marbles CC.

The Cabot one is for Goldfish CC.

I have had a letter from CCCS today to say that they have contacted all my husband's creditors with a view to writing off his debts.

 

I do not know how long I will be off work and not sure what my income will be when I return. I am still waiting to hear whether I can get Bereavement Allowance (for a year).

I have the Bereavement Grant of £2000 already but still waiting for funeral bills to come in.

I will try and get the letters sorted to the DCAs tomorrow if I feel OK.

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Thanks for all that info.

That is interesting about passing any inheritance to my children. I am sole executor and sole beneficiary of the will. But there will be very little "inheritance".

My husband had been made redundant a few years ago so tried to go into business with his redundancy but got well and truly stuffed plus he was quite naieve and believed that business deals could be sealed with a promise. He was a very honourable man and a loyal friend but that didn't stop him being let down badly.

Then he started to work for a local employer, worked like a slave to get the man's catering business up and running and then that person did a moonlight flit owing loads (including DH's wages)

Then he got a job cooking (he was a chef) in a local hotel as he was so desperate to earn money to pay off our debts. He got the restaurant up and running and people queing to get in, then the owner cut his hours so low he decided to move to another hotel.

He improved the menu there but the owners again cut his hours so that he was only earning about £60pw plus his pension of £300ish a month. He was so depressed that I was having to work long hours to make ends meet.

In November we had a major house fire when I was in the house due to an electrical fault. (Rented house) We got our house contents claim paid in full so we decided to use it for an op for my husband.

He had major health problems because of his weight so we decided that weight loss surgery was the way. I had it last year and it had improved my life and fitness so much.

He had no sick pay while he was off....something to do with his early retirement pension but we knew it would be an investment and we used the rest of the insurance money to supplement our income.

 

I'm sorry to have gone on so much about things that are not related to my original post but I need to keep repeating things so that my head can believe that this nightmare is real.

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I am sorry I have not been back on but I am finding it difficult to get myself to take an interest in anything.

I have read the letters in the template library.

Can I send one off to my creditors even though I am in a DMP with the CCCS? The CCCC have suspended the payment they were due to collect on Aug 1st and said I can miss September's as well if I want.

I am going to try to get back to work at the beginning of September...if I can stop shaking long enough.

It was so hard to get ourselves sorted out 2 yrs ago and the thought of going through it all again is too much to bear.

If I could sleep and eat I might be able to concentrate. Its only a month since my husband died but there are so many things to do.

I will try and get my act together.

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One more job done.

I have downloaded the letter "N" from the template library and edited it to reflect me as a single person and put my own address and details on. The local Post Office is shut this afternoon so I will get the letters posted tomorrow.

Had a letter from the "Executor Help Team" at Egg today sending their condolences and asking for a copy of the Death Certificate. Unfortunately for their "Help Team" it was addressed to another person with a completely different name from mine.

How bad is that?

Had a major few minutes of crying and then got angry because its the second time this has happened. The previous one said "We are so sorry to hear of the death of (first name)"....but it wasn't my husband's name at all.

No doubt some other widow is getting a similar set of letters with my husband's name on.

 

Then I got a letter from DSS telling me I qualify for Bereavement Benefit for a year as I am under 55. Its awful when I think my DH tried so hard to find more hours to work rather then get benefits and now the government are throwing money at me for doing nothing. ( I do work but am off sick following my husband's death).

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  • 2 weeks later...

I was rather late posting my letters off as I seemed to lose the will to do anything. But they went yesterday afternoon by Recorded Delivery.

I was really angry to get a letter from my husband's Private Pension people to say that they had a Decree Absolute dated 1994 saying my husband and I were divorced.

As I didn't meet him until 1997 and we were not married until 2000 this was ridiculous. I was so mad I actually managed to phone the person who wrote the letter and blast him out.

Anyway, that did kickstart me into getting the letters finally posted.

How do these big companies get away with being so unfeeling? I bet they spend hours putting together carefully worded plocies and protocols to tell their employees how to deal with grieving relatives. Shame they don't put them into practice.

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I don't know whether this next post is appropriate here but, I have had a letter this morning from RBOS about one of my husband's credit cards. Its from RBOS and is actually very nice...shame they couldn't have been the same 3 yrs ago when we were ready to top ourselves because of worry over debt. If only we had known.

Anyway, the letter says that they have been told by the CCCS there are insufficient funds in his estate to settle the remaining balance which is true. They are asking for copies of his bank statements to verify this and details of outstanding debts. Plus details of his assets..lol

I don't have a problem letting them see his bank statement for the last 3 months as all it shows is the pensions he was getting (£327pm + £37pm) and his tiny wage (between £30 & £50pw). But there is a deposit of £3000 which was what I transferred from my account as it was some of the insurance money we got following a house fire. I have a couple of letters from the Insurance Company about this money.

£550 in an ISA which he had saved hard for to give us a holiday soon.

Should I send these letters as well to explain why the money is there? TBH, by the time the Funeral costs are paid there will only be a little bit left anyway. The rest of our money was all in my name.

Can they ask to see my bank statements? I have moved any money we had into savings accounts as there was not enough to offer F & F settlements on the huge debt we had.

The RBOS did say to update them in 3 months if the estate is not settled.

The "Estate" my husband left has no monetary value. Just the memory of a great man who was loved by many. The house and garden are full of things he made from what other people would have thrown away. He had the gift to see a work of art in any piece of scrap wood or metal.

 

Thank you for the messages left so far. It's a lonely time at the moment and difficult to sit down and deal with this sort of thing.

Edited by nuthatch
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I am still here.

My GP has signed me off for another 2 months. I have contacted the CCCS asking for a telephone review as I cannot stop worrying about the debts.

I had a letter about my husband's EGG CC basically saying "Sorry he died, now send us a cheque for the outstanding amount and Grant of Probate".

I was sorely tempted to relegate it to the bathroom.

But I have written back to say I am the sole executor and I am sure they know that they are last in the pecking order to get any money after funeral expenses etc are settled. I also told them I have been informed by the local Sheriff's Office that I do not require a Grant of Probate as he had a will and his estate was less than £30,000.

I also said they would have to wait until I am ready to deal with this.

Do these people have no feelings at all? It was only 6 weeks after my husband died and they are demanding money.

I hate them with a passion.

Still waiting for the CCA from the 2 DCAs whose time is up end of next week.

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Mail has just been and I have a letter from Cabot.

 

"We acknowledge receipt of your request under sections 77 and0or 78 of the Consumer Credit Act 1974.

The Cabot Financial Group is not obliged to provide this information but we are pleased to help and have already requested the documentation for you from the original lender.

Cabot Financial does not accept the statutory fee required under section 77 and/or 78 of the CCA 1974 and as a result Cabot has returned the fee of £1 that you have sent.

We anticipate that we will be able to provide the information within 12 days. In the event we are unlikely to obtain this information within theose time limits, we will write to you again".

 

Can't do anything with the Postal Order though can I as its made payable to Cabot.

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Thankyou JC, The Godmother and PriorityOne

I think it is a good idea to get individual files for each of the debts as I do get mixed up at the moment. I am usually a well organised person believe it or not and my gift at work was bringing order to chaos.

I will get the letter off to Egg on Monday and get some files.

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Hi Godmother. Thanks for your kind and helpful comments.

I have encountered this situation a few years ago with Egg. I was not in arrears on any credit agreements then.

My father died tragically due to medical negligence and I forgot to transfer enough money into my current account that month to pay my Egg loan DD.Two days after the funeral (delayed by 2 weeks because of decision about whether to have full inquest)I received a call from an Egg employee about the missed payment.. I did apologise and explained the reason why I had forgotten. And his reply?

"Yes Madam, but that was 2 days ago. Surely you can find the time to pay your debt with a debit card now!!!!"

I hung up and wrote a letter of complaint pointing out that I had been a customer for years and never missed a payment.

I did receive a very nice call and an apology following that incident.

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Ok. I have just printed out 2 copies. One for Egg and one for the file.

I have not signed it, just put a squiggle and will send it off RD tomorrow.

 

I have had a little panic. I did actually send them a copy of my husband's will which does state I am the only beneficiary.It was only one page...we haven't got much.

My 2 sons are named as beneficiaries in the event of both of us dying. I have blanked out their addresses though.

Is that a big mistake on my part?

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Have received a reply from Robinson Way re my CCA request on the HFC debt (Marbles CC)

I have been checking back through recordes I have of this debt which you may be interested in.

Had been paying via CCCS since beg 2006 on DMP.

 

19.03.08 Letter from HFC advising that a Default Notice had been issued and agreeing to accept reduced payments which was accepted 22.10.07 and to review account on 1.04.08.

 

26.03.08 Letter from HFC agreeing to extend DMP.

 

15.04.08 Letter from CCCS advising that HFC had notified them that they were no longer dealing with the debt and so they would hold onto the DMP money until they knew where to send it.

 

15.04.08 Letter from Robinson Way (Formal demand for payment).

"As we have now purchased the debt we are authorised to recover the full amount due. This is a formal notice of intended court action we intend to take unless you pay, or agree an arrangement with us" etc

 

17.04.08 Letter from Robinson Way to say they had purchased the debt

"and are wholly responsible for administering your account noted above. We note you are paying through a debt management company etc....."

 

Letter received today dated 13.08.08 from Robinson Way

 

We refer to your recent correspondence requesting a signed agreement under the CCA 1974.

We have requested a signed agreement from our client and this will be forwarded to you as soon as possible. Please be advised that your account is on delay in the meantime.

As a simple assignee from the original creditor we have acquired the rights but not the duties of the creditor as defined 189(1) of the CCA 1974 and accordingly are entitled to pursue the customer for the monies that remain due by reason of section 136 of the Law of Property Act 1925.

 

Yours sincerely etc

 

Don't understand this. From reading around CAG forums, I thought that when a DCA purchased a debt, they took over all responsiblities?

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The debt I have CCA'd Robinson Way on is actually one of my debt's, not my husband's. I haven't CCA'd any of my husband's debts yet...just asked Egg for proof that they have the right to collect the money.

 

I don't want things to get too complicated at this stage as I can't get my head round it.

 

I have bought a pile of files and am going to start putting things in seperate creditor order.

Now, that is a simple job my brain can process :)

 

I did attempt to start reading the link posted by The Chancellor (thank you) but could feel my eyes glazing over.

The relevant piece posted by The Godmother I can understand. So should I just write back to RW quoting that bit?

 

And JonChris....who are Dimond and Lovell? I will Google it to try and find out so silly question really.

I have now read this....3 times...and I still don't really understand it

 

In a perverse way, dealing with these people is helping my grief. I need someone to be mad at and I have had so much help from friends, relatives and the Medical Profession, I can't find a target there.

And as my DH tried so hard to get us out of debt and worried so much about it, these creditors are going to get the full blast of my anger using all the combined expertise of CAG.

Thank you all so much.

Edited by nuthatch
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As long as you lead be by the nose and tell me what to do I will do what you say.

I will tell you if my brain seizes.

 

I was supposed to be getting an email from the CCCS this week about my DMP review but have heard nothing yet.

When they do contact me, should I say I have CCA'd 2 of my creditors and if they don't reply by Friday they are out of time as it is more than 12+2 days I calculate?

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The letter cancelling my husband's debt has been safely put away in one of the new files.

 

Letter from Cabot re my CCA request for my Goldfish account received today:

 

Although Cabot has requested the information, the original lender is experiencing a delay in retrieving the information from its archives.

We shall send you the information as soon as we receive it.

 

We will, as a gesture of goodwill put your account on hold until we receive further communication from the original lender.

I think this could be good news or am I jumping the gun?

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Yes you should wait & see. However if you should get one, & this is relevant to all you creditors, make sure what you get is a true copy & that any signature purporting to be yours is in fact yours.

 

Following this advice and other posts on CAG, I used a squiggle of my initials on both the CCAs I submited to my creditors. I have never used this "signature" before so if I get an agreement with this on it is obviously a reconstructed document.

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