Executor paying DCA from mothers estate
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ranchhand
Posts: 17 Forumite
Hello everyone,
Dealing with mums estate, been through probate and have the " Grant". House is now up for sale and a small outstanding mortgage and a Barclays loan debt,which was on a CAB payment plan to clear needs to be paid from the proceeds.
I informed Barclays of the death sending in the death certificate as required and asked for a balance for probate purposes. I only have an old letter from them from Aug 2015
saying the balance was £4,500. They sent a reply saying the balance was now £7,000
I sent a letter asking them to provide details of how they arrived at this figure,since the account was on a payment plan which was kept to for at least the last 5 years as far as I can tell £10 a month, and now £27 up to mums death.
They sent a reply saying the account has now been passed to their probate specialists Phillips and Cohen. I received a letter from P&C saying the were acting on behalf of their client Barclays and a balance of £3,900 was now required to be paid from the estate. Bit of a difference but more like the true figure I would say.
I don`t dispute the debt and intend to pay it, I would just like some advise on asking for statements of payments received,charges,interest etc that arrives at this figure.
I have to justify any payments from the estate in the accounts. No payment can be made anyway until the house is sold, as the only money will come from the sale of the property.
I wrote and asked P&C to provide statemented evidence of the amount owed,I received a reply a couple of days later saying that they would request the additional information from their client.
A few days later they sent me a copy of a computer printed statement starting May 2007 £6700 and ending with a balance after a few pages of payments and interest added of £7079 C , June 2008 A/C closed.
I have put a C after the amount because it is in the receipt column and then says A/C closed. Does this indicate the debt was settled by their insures and sold on ? It definitely was not paid by my mother.
They say here is the information requested from our client and details to pay an amount of £3900. My question would be where are the records of the payments made since a plan was agreed with the CAB or even just the last 12 months payments towards the debt and how do you arrive at this figure. These statements are 9 years old.
What should my next move be?
Dealing with mums estate, been through probate and have the " Grant". House is now up for sale and a small outstanding mortgage and a Barclays loan debt,which was on a CAB payment plan to clear needs to be paid from the proceeds.
I informed Barclays of the death sending in the death certificate as required and asked for a balance for probate purposes. I only have an old letter from them from Aug 2015
saying the balance was £4,500. They sent a reply saying the balance was now £7,000
I sent a letter asking them to provide details of how they arrived at this figure,since the account was on a payment plan which was kept to for at least the last 5 years as far as I can tell £10 a month, and now £27 up to mums death.
They sent a reply saying the account has now been passed to their probate specialists Phillips and Cohen. I received a letter from P&C saying the were acting on behalf of their client Barclays and a balance of £3,900 was now required to be paid from the estate. Bit of a difference but more like the true figure I would say.
I don`t dispute the debt and intend to pay it, I would just like some advise on asking for statements of payments received,charges,interest etc that arrives at this figure.
I have to justify any payments from the estate in the accounts. No payment can be made anyway until the house is sold, as the only money will come from the sale of the property.
I wrote and asked P&C to provide statemented evidence of the amount owed,I received a reply a couple of days later saying that they would request the additional information from their client.
A few days later they sent me a copy of a computer printed statement starting May 2007 £6700 and ending with a balance after a few pages of payments and interest added of £7079 C , June 2008 A/C closed.
I have put a C after the amount because it is in the receipt column and then says A/C closed. Does this indicate the debt was settled by their insures and sold on ? It definitely was not paid by my mother.
They say here is the information requested from our client and details to pay an amount of £3900. My question would be where are the records of the payments made since a plan was agreed with the CAB or even just the last 12 months payments towards the debt and how do you arrive at this figure. These statements are 9 years old.
What should my next move be?
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Comments
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If the debt has been sold on to P&C, that would account for the £7079 credit to the account. That won't be what P&C paid for it as they usually pay pennies in the pound and specialise in "lemon debts".
I would recommend sending them a CCA request along with a £1 postal order (which is the standard fee for these things). Refuse to discuss anything until such time as the have provided a copy of the original signed paperwork including the terms & conditions that were in force at the time the loan was taken out.
There is a very good chance that the correct paperwork can be produced giving you leverage to negotiate a much reduced full & final settlement.Her courage will change the world.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.0 -
It is not really the executor's role to negotiate a reduction in debts however it is worth asking for a full and final settlement figure in hard copy writing, not by email, The OP needs to ask very firmly for proof of the actual debt due from the creditor. Taking a stonewall approach is not the way to get a good result.If the debt has been sold on to P&C, that would account for the £7079 credit to the account. That won't be what P&C paid for it as they usually pay pennies in the pound and specialise in "lemon debts".
I would recommend sending them a CCA request along with a £1 postal order (which is the standard fee for these things). Refuse to discuss anything until such time as the have provided a copy of the original signed paperwork including the terms & conditions that were in force at the time the loan was taken out.
There is a very good chance that the correct paperwork can be produced giving you leverage to negotiate a much reduced full & final settlement.0 -
As others have said, ask for a figure for full settlement, in writing (not e-mail) and also ask for a break down of how the figure has been arrived at.
Do you know how much your mum was paying? When did it change from £10 to £27 month? If you work out roughly what she has paid so far you can see whether the figure they are currently giving is close to £7,079 less payments to date, in which case it would probably be sensible to simply pay it. If the figure you get is significant different then it's reasonable to ask for a detailed breakdown. Was the payment plan agreed on the basis that interest was frozen, do you know?All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
Thanks for your responses,
Is it worth sending a CCA as the debt if definitely mums and only the amount is in dispute? The estate will have to pay it.
I know mum was paying £27 a month to Barclays via standing order for at least the last 12 months, which is all I have bank statements for. The debt was still with Barclays when mum died,I spoke to their collections department to inform them and to get the address to send the death certificate to.
It was about 16 weeks later when probate was granted, that I wrote to Barclays asking for a statement of the balance, they replied that the A/C had been handed over to P&C and they would be in touch.
I only have the financial assessment from the CAB,detailing income and expenditure at the time,back in 2008,which recommended a payment of £10. I know over a period of years that this increased to £20 and then £27 because mum told me so. I don`t know if the interest was frozen but I would of thought so.
The rest I have detailed in my first post. Someone must have details of the payments made by standing order in the last few years and if they have, why are they not producing them to allow us to see a correct balance?
I will write to them again asking for a full and final settlement figure and details of how this figure was arrived at. I have not told P&C at the moment that I have statements from mums bank account showing payments made to this debt in the last 12 months.
Lets see what they say.
Thanks for your help.0 -
P&C are used by quite a few places(banks utilities etc.) to deal with the legacy debts.
I suspect they do them for free(to the lender) in the hope of picking up probate work.
The issue seems to be a problem establishing the balance at DOD.
Could request the back statements of the account the SO came from(for free as it is to deal with a debt to them), and reconcile with the 2015 balance.
At £10pm it would be around £3,900 but if the payment went up it should be less0
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