Car Loan and Bereavement

TonyWilky

Hi All,

Please can anyone advise if I am being had here.

• August 2016: My Mum buys a 63 plate car for approx. £8900 - Apr = 12.9%
• Sadly my Mother dies in in December (R.I.P. mum x)
• Finance company collect the car and tell me they will sell it and bill for the difference
• Today the Finance company tell me bills is £4000+
• I ask why
• They say because my mum died the credit charges still stand

Everyone load I have paid off early the interest is deducted..

Seriously is this correct?

On top of the above, they sold an overpriced car with very high apr.

Any help massively appreciated

Thanks

Tony

PeacefulWaters

Your Mum's estate owes the money.

Does she have any assets left after the funeral was paid for?

TonyWilky

Thanks, I know my mums estate owes the money - my point is why is a deceased person liable for the whole of the interest over a period the did not live.


Example- I take out a three year loan and settle it 3 months, interest is calculated only at the three months and a settlement figure is given.


What's happening here is they still want the interest to be paid, even though she's died.

zippygeorgeandben

I didn't want to just read and run, I just want to offer my condolences. Christmas must have been tough for you.

[Deleted User]

PeacefulWaters wrote: »

Your Mum's estate owes the money.

Correct.

If there is nothing left in the estate, after the funeral has been paid for, any creditors are just plain out of luck.

Relatives are not liable, for the debts of a deceased person.

TonyWilky

Thanks for replies and wishes x

Whether there is money in the estate or not is another question


Again are the finance company trying to pull a fast one by saying my mother is still liable for all of the interest as she died within the terms of the agreement


This seems somehow very very unfair

PeacefulWaters

TonyWilky wrote: »

Thanks for replies and wishes x

Whether there is money in the estate or not is another question


Again are the finance company trying to pull a fast one by saying my mother is still liable for all of the interest as she died within the terms of the agreement


This seems somehow very very unfair

Would you expect a savings provider to carry on paying interest after death? I would.

It works the same the other way round. A shame. But reality.

Shakin_Steve

The T&C's of the loan agreement would have all of the information you need. Have you got a copy?

MEM62

PeacefulWaters wrote: »

Would you expect a savings provider to carry on paying interest after death? I would.

It works the same the other way round. A shame. But reality.

Only until the point that the money is removed from the savings account. In the Op's case the loan will be settled early so it is not unreasonable to expect the appropriate reduction in interest.
Either way these arguments are academic. The terms of the contract will dictate the outcome and the OP has already been advised to refer to these.

foxy-stoat

If you rewind a few months....


How much would the settlement figure of been prior to the finance company collecting the car?


What was the value of the car on the open private market?


How much would it of cost you, or your Mums Estate to continue to pay for the car, including VED, insurance and marketing it until it was sold?


How much would you or your Mum's Estate would of owed at this point, less costs spent on selling?


You need to bare in mind that;
Some private buyers do not like to buy a car that has finance on it,
The finance may of been more than the market value of the car,
You may of had to settle the finance in full with your own money in order to sell it at possibly a loss,
You may not of been in a position to do anything if probate had not been granted.


If the Estate has no money or assets then its all irrelevant anyway.


Good luck and sorry about your Mum

sheff6107

Simply write to the finance company and tell that unfortunately there is no money left in the estate.

Most loan companies know their on to a hiding to nothing and you'll hear nothing back from them again.

This particular loan company is in a far better position than most - they've got a car out of it.