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  • FIRST POST
    • TonyWilky
    • By TonyWilky 20th Mar 17, 8:49 PM
    • 3Posts
    • 0Thanks
    TonyWilky
    Car Loan and Bereavement
    • #1
    • 20th Mar 17, 8:49 PM
    Car Loan and Bereavement 20th Mar 17 at 8:49 PM
    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
Page 1
    • PeacefulWaters
    • By PeacefulWaters 20th Mar 17, 9:00 PM
    • 6,041 Posts
    • 7,318 Thanks
    PeacefulWaters
    • #2
    • 20th Mar 17, 9:00 PM
    • #2
    • 20th Mar 17, 9:00 PM
    Your Mum's estate owes the money.

    Does she have any assets left after the funeral was paid for?
    • TonyWilky
    • By TonyWilky 20th Mar 17, 9:06 PM
    • 3 Posts
    • 0 Thanks
    TonyWilky
    • #3
    • 20th Mar 17, 9:06 PM
    • #3
    • 20th Mar 17, 9:06 PM
    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
    • By zippygeorgeandben 20th Mar 17, 9:07 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    • #4
    • 20th Mar 17, 9:07 PM
    • #4
    • 20th Mar 17, 9:07 PM
    I didn't want to just read and run, I just want to offer my condolences. Christmas must have been tough for you.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Bedsit Bob
    • By Bedsit Bob 20th Mar 17, 9:10 PM
    • 9,524 Posts
    • 49,786 Thanks
    Bedsit Bob
    • #5
    • 20th Mar 17, 9:10 PM
    • #5
    • 20th Mar 17, 9:10 PM
    Your Mum's estate owes the money.
    Originally posted by PeacefulWaters
    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.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • TonyWilky
    • By TonyWilky 20th Mar 17, 9:16 PM
    • 3 Posts
    • 0 Thanks
    TonyWilky
    • #6
    • 20th Mar 17, 9:16 PM
    • #6
    • 20th Mar 17, 9:16 PM
    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
    • By PeacefulWaters 20th Mar 17, 9:35 PM
    • 6,041 Posts
    • 7,318 Thanks
    PeacefulWaters
    • #7
    • 20th Mar 17, 9:35 PM
    • #7
    • 20th Mar 17, 9:35 PM
    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
    Originally posted by TonyWilky
    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
    • By Shakin Steve 20th Mar 17, 9:54 PM
    • 696 Posts
    • 489 Thanks
    Shakin Steve
    • #8
    • 20th Mar 17, 9:54 PM
    • #8
    • 20th Mar 17, 9:54 PM
    The T&C's of the loan agreement would have all of the information you need. Have you got a copy?
    I came into this world with nothing and I've got most of it left.
    • MEM62
    • By MEM62 21st Mar 17, 11:44 AM
    • 1,143 Posts
    • 779 Thanks
    MEM62
    • #9
    • 21st Mar 17, 11:44 AM
    • #9
    • 21st Mar 17, 11:44 AM
    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.
    Originally posted by PeacefulWaters
    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
    • By foxy-stoat 21st Mar 17, 3:26 PM
    • 1,563 Posts
    • 856 Thanks
    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
    • By sheff6107 21st Mar 17, 4:27 PM
    • 280 Posts
    • 184 Thanks
    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.
    • sheff6107
    • By sheff6107 21st Mar 17, 4:29 PM
    • 280 Posts
    • 184 Thanks
    sheff6107
    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.
    Originally posted by PeacefulWaters
    Au contraire. The reality is that the vast majority of loan companies write them off after death. The time and money chasing after estates for recompense doesn't make it worthwhile.
    • motorguy
    • By motorguy 21st Mar 17, 6:18 PM
    • 14,689 Posts
    • 8,115 Thanks
    motorguy
    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
    Originally posted by TonyWilky
    Firstly, sorry for your loss. I'm sure you dont need this hassle at this difficult time.

    Back to the question in hand - getting a settlement figure and clearing a loan is very different though than a finance company taking a car back.

    What they are saying is total monies owed - amount recovered from car sale = remaining monies owed.

    If you'd been able to clear the finance and sell the car (OR sell the car and clear the finance) you would have got the discounted settlement figure.

    Surely the way to handle this would have been through her estate -

    Asset = car
    Liability = loan

    Clear loan from estate, sell car?
    Last edited by motorguy; 21-03-2017 at 6:30 PM.
    Regards

    Paul
    • Nearlyold
    • By Nearlyold 21st Mar 17, 7:15 PM
    • 828 Posts
    • 667 Thanks
    Nearlyold
    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.

    .
    Originally posted by sheff6107
    Doesn't the Executor have a legal duty to settle estate debts if the funds are available to do so.

    This particular loan company is in a far better position than most - they've got a car out of it.
    Surely if it was an HP agreement (as is likely) they owned the car anyway and would have taken steps to recover it
    • sheff6107
    • By sheff6107 22nd Mar 17, 11:05 AM
    • 280 Posts
    • 184 Thanks
    sheff6107
    Doesn't the Executor have a legal duty to settle estate debts if the funds are available to do so.
    Originally posted by Nearlyold
    Yes and no. You are not obliged to prefer creditors by amount or by which creditor comes knocking first.

    Practically though, most creditors will just write off the debt in the same way they would if a dissolved company owed them.
    • foxy-stoat
    • By foxy-stoat 22nd Mar 17, 4:15 PM
    • 1,563 Posts
    • 856 Thanks
    foxy-stoat
    Yes and no. You are not obliged to prefer creditors by amount or by which creditor comes knocking first.

    Practically though, most creditors will just write off the debt in the same way they would if a dissolved company owed them.
    Originally posted by sheff6107

    Errr yes and yes.


    The Executor should be paying debts off in the correct order. If there is a few creditors then the logical way is to pay an equal percentage to each creditor - although before paying they should make the offer as full and final settlement so the lender writes off the rest of the debt.
    • dresdendave
    • By dresdendave 22nd Mar 17, 5:07 PM
    • 566 Posts
    • 607 Thanks
    dresdendave
    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.
    Originally posted by sheff6107

    The OP has been evasive as to whether there is money in the estate to cover the debt. If they followed the above advice (and funds were available), wouldn't the executor become personally liable for the debt were the finance company to find out after the event?
    • foxy-stoat
    • By foxy-stoat 22nd Mar 17, 5:09 PM
    • 1,563 Posts
    • 856 Thanks
    foxy-stoat
    The OP has been evasive as to whether there is money in the estate to cover the debt. If they followed the above advice (and funds were available), wouldn't the executor become personally liable for the debt were the finance company to find out after the event?
    Originally posted by dresdendave

    This is correct
    • PeacefulWaters
    • By PeacefulWaters 22nd Mar 17, 5:10 PM
    • 6,041 Posts
    • 7,318 Thanks
    PeacefulWaters
    In a country where home ownership is around the 70% mark creditors don't just roll over and write off debts without a little bit of effort.

    And executors have a personal liability if they distribute the estate before settling debts.
    • cj1974cr
    • By cj1974cr 16th Apr 17, 12:51 AM
    • 14 Posts
    • 6 Thanks
    cj1974cr
    Hello Tony,

    So sorry to hear the news about your mum,

    I work for a bank and frankly I'm outraged by the Car Finance provider approach and failure to consider your circumstances.

    Firstly you aren't liable for the debt - full stop , the next issue is the estate - if there is likely to be any money after other costs are paid.

    If there are no funds left - then you cannot and shouldn't be expected or asked to pay anything further.

    Lodge a complaint without a delay, and depending on the type of debt you might be able to lodge with the Financial Ombudsmans (it's free and call them)

    The most sensible approach is to write off the debt, u dear the circumstances.

    Dont forget to provide them a copy of the death certificate, if the Car is on HP, depending on how far your mum was through the repayment - she retained the right to return the Car without penatly

    Ask the lender to take possession of the Car , don't attempt to sell the Car as technically your not the owner and the lender has registered the car for HPI check , so this will prevent the sld without their permission.

    But remember -

    Check the payment schedule and if Car can be returned without penalty

    Complain - get there name , dates time of calls , copy letters, including acknowledgement of bereavement - this is priority!!!

    Ask lender to write debt off

    Is there any money in the Estate - yes - depending how much short settle ( last resort)
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