inherited debts from deceased with only estate my home!!!!

[ethavielachasha]

Hi All,

 

I have a complex situation....

 

My Mum died In 2008 (when I was 21yo) she left a huge amount of debt and a small completely run down house.

 

As he next of kin I got probate, i contacted all known creditors and most when i explained i lived in the house wrote off the debt - great....

 

Except RBS who had been chasing me for her £3500 credit card debt...

 

By the time my mum was cremated I owed 10k for funerals administration costs and a loan which I took out to make the house habitable... (at 21)

 

I'm now being told The estate I.E my home (becuase there was not anyhting else) still owe's this money and RBS demand payment.

 

I have been told I have 3 options ....

 

Pay the full amount in a lump sum.... Immpossible

Sign a payment plan for an agreed amount untill it's paid off....

of they will put a charging order on the house ... which I understand means when the house is sold RBS get their peice of the pie.... Great I am planning to live here for the rest of my life so take what you want when I'm dead....however I dont claim to understand the full scale of a charging order and what that means (any further info would be greatly appreciated)

 

I want to know .. can they add interest to a charging order - or do they just get 3500 whenever I sell it.. or does this add extra costs of any kind ?

 

Obviously RBS are trying to convince me that it's best to offer to pay the debt through a monthy agreement , but I can't help but feel that some "advisor " at RBS is up for a big bonus if they can convince me to pay a debt they have been chasing for 10 years - even though legally I may not have to pay any thing, by agreeing to something the debt does become mine because I have entered the agreement.

 

Does any one have any suggestions how to sort this mess out?

 

I'm more than happy to pay them when the house is sold ... athough I don't plan to sell it for like 30 years - so just don't want to find interest has turned 3500 in to 35,000 .....

 

( also there is an option to make them and offer of what i'm willing to pay - any ideas what the least amount they are likely to accept would be ? baring in mind they have not had a payment on it since 2001)..

 

Can I just tell them to keep on chasing I aint paying ? and what else can they do to try to force payment ....?

 

surely no judge will allow a forced sale for 3500? I WOULD BE HOMELESS!

 

They have given my 2 weeks to seek advice before they expect my responce PLEASE HELP!!!!

[Ell-enn]

Are you saying there has been no payment on this debt for 10 years ?

[the_shadow]

Ok, who exactly is asking for this and how... ? Has this gone legal at all at the moment? Have they put these threats in writing or just by telephone.

 

I'm no expert but if that was your mums estate and she owed the money then yes I believe the estate still owes the debt although in the circumstances you'd expect them to write off such a small value debt.

 

S.

[the_shadow]

Ooo well spotted Ell-enn

[rondodiver]

Did a solicitor adminster the probate or did you do everything yourself to wind the estate up ? Have RBS proved the debt statements payments etc ? and did they make a claim, also did you put a notice in the local paper and london Gazette inviting creditors to contact the estate if they had a claim.

 

If they cannot prove the debt the estate owes them nothing

[ethavielachasha]

Ell-en - as far as I know no, there has been no payments since 2001 when mum took out the card in the first place .... until she died in 2008. I was under the impression they accepted the death certificate and wrote off the debt... they have been sending post to the wrong address trying to chase me i've therefore i've obly just realised they had been chasing it!

 

The shadow - I've spoken to RBS , no legal stuff has happened yet , They had wrote to me but My Dad got the post at his house and we have not been in touch for years .... They have discussed my "options over the phone " but I've not seen the letters.

[Cadbury1879]

Hi I am surprised that RBS are putting you through tis stress.It was your Mums debt I don't believe that there is alot they can enforce.

Just to put your mind at rest. IMO I am convinced that you have no chance whatsoever of any forced sale of your property.There attitude is appalling, if it was me I ignore them.

All the best

Cad

[cerberusalert]

It's a Statute Barred debt and they cannot take any enforcement, send them this; http://www.consumeractiongroup.co.uk/forum/content.php?408-Letter-sent-when-debt-is-statute-barred

 

The onus is on them to prove it is not statute barred & the only way they can do that is by showing that a payment has been made within a six year period or a written admission of the debt has been made by your mother.

[ethavielachasha]

rondodriver - I did the probate my self I couldnt afford a solicitor, I sifted through all the documents I could find and contacted all the companies myself to tell them the situation... they all said send the documents including RBS and suggested they would not need to contact me any further .... I was 21 nieve and skint (still am) I had to take out loans to pay for the funeral ..... and neadless to say I had 2 weeks to sort this lot out after my Mum died before I had to return to work!

[ethavielachasha]

cerberusalert - Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

 

The last payment of this alleged debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

 

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to CPUTR2008

 

We await your written confirmation that this matter is now closed and that no further contact will be made concerning the above account after that last letter.

 

"Is this the case if they have been senting letters demanding payment throughout the period ? I know nothing has been paid on it in at least 6 years. however I have requested all the statements for the 5 years before she died to be sent to me by post. Because I also want to see how much she actually spent and how much of it is interest and charges ...... my mum *god rest her soal was a illiterate unemployed alcoholic so there will be no written accounts from her...

 

Personally I think the lending was wholly irresponcible in the first place considering she had no income ! who gives a credit card to an unemployed alcoholic who is already tied up with debts of over 20k not including morgages!

[cerberusalert]

It doesn't matter what letters they sent or 'phone calls they made. What matters is that there was no payment for any clear six year period (five in Scotland) and that your mother did not admit to the debt in writing.

[ethavielachasha]

Thank you all ever so much for your advice so far .... I'm not stupid by any most standards but I can't help feeling that because I don' t have in depth knowledge of the legal rights surrounding the case that RBS are just hoping to railroad me into something to scratch back some minor amount so some call centre phone jockey can meet their repayments target at my expence!

[cerberusalert]

Welcome to the real world of the finance industry. They are not content with the tax payer bailing them out, awarding themselves millions in bonuses but they also want to screw the last penny out of the little people as well.

 

As you have experienced, they want their cake and they want to eat it as well.

[cerberusalert]

From now on do not speak to them on the 'phone, if they contact you tell them you will only communicate in writing. In that way it leaves a nice paper trail which they cannot deny & they certainly won't commit to paper what they'll say on a 'phone.

 

Once they receive the letter in post #8 they must produce evidence of an enforceable debt, if they try to pursue otherwise they'll be in breach of OFT guidelines & you could sue for harassment.

[ethavielachasha]

cerberusalert - wow thank you, this might just be the thing.... So if there were no payments between June 06 and now and she has never sent them a letter accepting the debt I don't have to pay it! AND they have to stop hassling me! so IF I demand a copy of any correspondance my mother sent and the statements - I should be able to prove the debt is Statute Barred ... so if .. and I'm not expecting there are but if she has paid within the past 6 years could I just hold out until the 6 year has passed then it is statute ? Also I had to sent them birth certificate and probate letters explaining that she had died ... would this count as me admittin gto the debt? or did it have to be me Mum who sent a letter?

[Ell-enn]

RBS will know perfectly well that this debt is stature barred! while the fact that it's SB doesn't stop them from chasing the debt, they cannot take any legal action to recover the money. Looks like they are relying on your ignorance of the law to get you to agree to pay this off when you have no obligation to. Disgusting behaviour from RBS !

[the_shadow]

Thank you all ever so much for your advice so far .... I'm not stupid by any most standards but I can't help feeling that because I don' t have in depth knowledge of the legal rights surrounding the case that RBS are just hoping to railroad me into something to scratch back some minor amount so some call centre phone jockey can meet their repayments target at my expence!

 

This is why I asked if they'd put it down on paper... these firms are happy to leech of the lives of people and threaten all and everything over the phone, much less likely to put something in writing that wont stand up in court, its not unheard of but unlikely.

 

If they phone you just tell them you are recording the call for your protection and evidence purposes, this also seems to put them on the back foot

 

Hopefully the letter re: SB should be all that is required

 

S.

[cerberusalert]

I should be able to prove the debt is Statute Barred .

You don't have to prove anything.... they do, they have to prove it isn't Statute Barred.

[ethavielachasha]

I suppose It doesnt make things any worse for me is I sent them the SB letter and It's wrong though right? I'll look stupid but It's worth a try right? -Thanks to you all . If this works and I don't have to pay it I will certainly make the biggest donation I possibly can and recommend the site to anybody who has these types of problems and suggest they do the same !!!!

 

I'll keep my fingers crossed the statements dont show any payments for mum !

[cerberusalert]

Once they've realised you've twigged on to them they'll back off.

[Kayyak]

The advice you have received is great, but just as a back-up, make sure the house been put into your name with Land Registry. If it's in your name I'm sure this would benefit you further and they would never be able to get a charging order on the property (as I said, just as a back-up).

[ethavielachasha]

 

I can't believe this site and the amazing people on it have given me more sane advise in 1 evening than days of scouring the internet and complimentary initial consultations with solicitors.

 

My sincerest thanks to you all. Cerberusalert especially I may actually sleep tonight thanks to you.....

[dx100uk]

thats what we are here for

 

just to reassure you

 

both my parents died in quick order

 

i did the whole thing myself and even with debts within 6yrs no-one got anything.

 

there is absolutely no way any financial institute will go anywhere near a court unless the old debts are more than a few £1000

 

they will never want the bad publicity.

 

sleep tight

 

dx