Credit card debt after death

[loonpants]

Hi all,

 

I'm after a bit of advice and i'd really really appreciate some help on it. My best mate's dad died this week leaving 4-5k of credit card debt that his mother didn't know about. He had PPI on it but it's a bit of a grey area as to where he stands on claiming on it. Does anyone have any ideas about the legal implications of where the mother stands with absorbing the debts? Is she liable for them? There's a lot of worry happening with it which i'd like to give her a definite answer.

 

I really appreciate any help.

 

 

thanks,

 

 

jon.

[cerberusalert]

His mother is most definitely not reponsible for paying this debt, If he was paying PPI it should be covered in the policy.

 

the Executor of the estate should notify the bank of his death enclosing a copy of the death certificate & that should be an end of the matter.

[cerberusalert]

See also; PPI LEAFLET 2

 

What is payment protection insurance (PPI)?

 

PPI is designed to help you pay your debts if you have an

accident, become ill or unemployed, or if you die. You can

buy PPI with most types of credit, such as hire purchase, a

personal loan, a mortgage, a secured loan (this is a second

mortgage on your home), a credit card or a store card.

PPI will pay part (or all) of your repayments on your loan or

credit agreement if you cannot work because you are ill,

have an accident or lose your job. It can also pay a lump

sum to your credit provider if you die before you have paid

the amount you owe on your credit agreement.

[loonpants]

That's brilliant. Thank you both so much. You've made a very sad lady a little less sad and worried.

 

Sorry for adding something but i'm finding things out as soon as i find them. He also had a sole bank account with barclays which his salary is paid into. IT's £500 overdrawn at the moment. What would happen with that?

[loonpants]

LOL. same person, sorry mate....

[cerberusalert]

The bank should be notified in order to freeze the account & stop further interest being added. Accounts are normally paid by the executors of the estate after high priority debts have been paid. This could take a year depending on how complex the estate is. Have a look at the following link which will explain things in more detail. What happens to debts when someone dies? : Directgov - Money, tax and benefits

[loonpants]

Ahh, i see. So as executor of his estate, she's liable for the overdraft despite it being completely in his name? Will they have to claim for that or is it up to her to instigate it?

 

Another thing that's come to light is that he wasn't the best at paying on time with the credit cards, What i would love is that she gets as much money to secure her future as i can offer her, would she still be able to claim back any credit card charges from them even though the debt has been paid by the ppi?

 

I really do appreciate this help.Thank you!

[yourbank]

Interest is only applicable up to the date of death.

[cerberusalert]

Ahh, i see. So as executor of his estate, she's liable for the overdraft despite it being completely in his name?

The Executor only pays from the Estate not their own money.

 

She will still be able to reclaim unfair charges on behalf of the Estate, but it would be better if that was done after the balance is settled by the PPI. This can be done within six years so there's plenty of time without having to rush things.

[loonpants]

That's brilliant, thank you so much. I've let her know and it's put her mind at rest. Thanks again.

[loonpants]

sorry to resurrect this thread but i need some more advice if possible. All the debts have been sorted apart from one loan that doesn't have ppi on it. They're now kicking off sending threatening letters to the widow demanding payment on the estate that simply isn't there. I've no idea where to take this, can anyone help? There's no money in the estate at all, what can they demand from her??

[dx100uk]

sorry to resurrect this thread but i need some more advice if possible. All the debts have been sorted apart from one loan that doesn't have ppi on it. They're now kicking off sending threatening letters to the widow demanding payment on the estate that simply isn't there. I've no idea where to take this, can anyone help? There's no money in the estate at all, what can they demand from her??

 

and this is who?

 

debts die with the debtor esp if they are civil debts

 

dx

[loonpants]

Hi,

 

It's HFC. And thanks for the reply. Do you know the law i can quote at them to make them go away?

[cerberusalert]

hello & wave

 

 

Make a complaint to your local trading standards & the OFT with regards to their harassment and threats, they are in clear breach of OFT guidelines & CPUT;

 

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/DebtCollectionComplaintForm.DOC

 

The Office of Fair Trading: Contact us

 

[email protected]

 

The Office of Fair Trading: Debt collection practices

 

tel: 020 7211 5823

Debt collection guidance - Final guidance on unfair business practices - oft664

[loonpants]

That's Brilliant. Thanks a lot for that. I'll let you know how they go on.

[grenadier2]

Hi,

 

I am in a similar situation. My father died and had 2 credit cards. One with Monument who immediately wrote off the debt and one with Egg who are hounding me for the money. My father has a property and hopefully when sold there will be some money left over to pay funeral expenses etc. He had no life insurance or other assets and my mother died 6 months prior to my father. When my mother died her banl loan and credit card with HSBC were immediately written off and HSBC were very helpful and understanding. Am I responsible for the debt to Egg and why did Monument write off the debt to them?

 

Whats the latest in your situation?

 

Any ideas ?

[loonpants]

Sorry, i forgot to update!

 

Everything was finally sorted out once threats were issued to them with regards to the OFT and trading standards. All the debts were cleared. You're definitely not responsible for your father's debt. All the above advice was completely correct and they didn't have a leg to stand on.

 

Thanks to everyone!

 

What exactly are EGG saying? That you're responsible for the debt now? Or that they want money out of the estate?

[grenadier2]

Thats great news, glad you got it sorted.

Egg say that I need to sell the property and pay them, but other credit card just wrote it off no qibbles. Was planning to move into the property myself, but if I have to pay egg then I will have to sell it.