Anyone work in a bank ?

banxsuck

Hi there, need some advice- a few years back Mum & Dad took out a loan, wanted insurance with it, but were told they were too old! they were both pensioners, Mum's income was only disability allowance, they still were given loan. ( I'd say that the bank took the risk by doing that )
Then Mum dies, so Dad couldn't pay it without her income.
Family members have to pay for her funeral as he can't afford to.
Opened new bank account for pension to go in & never dealt with other bank again, just got threatening letters & charges added constantly.
Anyway Dad gets compensation money for work injury - still owes bank loan money & family members funeral money & now have to pay for his funeral!!!
Loan bank advised he has died they say the debt has not died with him & that it needs to be paid, but the only money he has is actually owed to family as they have now paid out for 2 funerals!! no will

My question is - Can the bank see that Dad had another account ??
The money has been paid back to family members, out of Dad's compensation cheque which he never got to spend a penny of, but they are scared to touch it in case the bank can get thier hands on it.
I know Dad owed the money, but they hounded him for 2 years & didn't give an inch ( freeze interest or anything to help )
Family really scared they will be done, but really cant afford to lose this money as Dad said he'd pay them back once he got compensation, which literally came through a week before he died!

This is not my real user id for obvious reasons, any help will be gratefully received

xmaslolly76

Firstly sorry for your loss. As far as i know the loan will have to be settled out of his estate but if there isnt enough to cover it then the debt dies with him and they cant hound the other family members for payment unless they are named on the loan ie as guarentors. I'm sure someone who nows more about it will be along shortly.

mum2one

Sorry I dont work in a bank, more to bump the post up.

So sorry you have to go through all this, and sorry for the lost of both ur parents.

From my perspective I think that the debt would still be classed as owed, as no insurance was taken, they would expect the money repaid, and in the event of death, then they would expect the debt to be paid from the insurance, or any funds in that persons account.

I really think you may need to take some advice, most solicitors do free initial appointment, my tip would be go to a larger firm as they have seperate departments, meaning ur get a specialised solicitor.

Again, sorry your having to go through all this.

banxsuck

Thank you for replies so far - Family have no qualms about not telling the bank about the other account, just worried they can find out.
I know the money was owed, but the bank treated him terribly in his time of loss & now is hounding the family member dealing with his money - or lack of it!!
It's not a huge amount - less than 6k I think & will literally cover the costs that have been involved in 2 funerals & other expenditures, that the family can ill afford, & were expecting to be paid back for ( well Mum's, didn't expect to have to pay for his as well! )

xmaslolly76

Well the funeral expenses for your father will have to be covered first but then i'm sure that they could and would lay claim to the rest. Unfortunately regardles of how they treated him ( and trust me i know how god damned evil they can be) they are still entitled to claim against the estate. I'm sorry i know this isnt what you want to her but to be honest it may be better just to pay up what can be afforded and get them off your backs. They basically cant have what you havent got and have no claim against you or other memebers of the family no matter what they try and say.

celyn90

I am so sorry for your loss.

In my understanding (I don't work in a bank) there is a certain order in which benefits and creditors are paid from the estate of the deceased. I think that the funeral costs are the first thing that has to be met from the estate - certianly was the case when my uncle died, who had just enough assets to cover the burial and a whole host of debts left.

http://www.communitylegaladvice.org.uk/en/legalhelp/leaflet10_13.jsp

Certainly your dad's funeral costs should be met by the estate, but I'm not sure about claiming money in lieu of your mum's if she died earlier. I would think, sadly, that her funeral costs would have been deemed settled from her estate or by family at the time of her parting.

I think you need to speak to a solicitor or CAB to put your mind at rest and clarify the situation. All the best, cel x

banxsuck

Thing is I know the bank are due thier money, but so are the Family, who can afford to lose it far less than the stupid bank, that worried Dad silly, Family member helped him open a new account as they were leaving him with no money to even eat as taking loan & adding charges, all this after losing his wife, made him very ill.
What I'm really asking is - CAN THEY FIND OUT ( oops sorry for shouting ) that the other bank account existed ?

McKneff

Most solicitors give an initial half hour free consultation.

and as far as i know the other posters are correct. The funeral payment has to come out of the estate first,(so that at least can be paid back to family) then debts then the family get the rest.
Dont try to hide anything from the banks, I think they send out asset forms or somenthing asking about the estate, cars, other bank accounts which you have to complete. they will eventually find out if you lie on the form and then your all (or just you will be if you fill in the form dishonestly) in trouble.

Sorry about your dad, hope he had a wonderful life.

xmaslolly76

Yes they can and will one way or another and as mckneff has said is it really worth all the extra hassle and trouble you would all get into. Pay what can be paid and tell them to go swivel for rest its all legal and above board then. :-)

banxsuck

Thanks Folks, yes he did have a wonderful life, until he lost his reason for living Mum !
So I expect if done above board Family will get funeral costs, but only for him, & bank will get the rest as loan has about 8k left to be paid.
To me it's the principal that they gave 2 pensioners, with only benefits a loan for such a large amount, both had heart conditions!
The fact they showed no compassion whatsoever when Dad was left in such a situation that he couldn't afford to eat, i'll admit Mum & Dad did spend way too much as Dad did manage to pay the credit cards off - as he felt so bad that he owed it, thing is Family had arranged for him to pay £1 a month & he wouldn't do it as they also kept ringing/writing threatening him & he was worried all the time.
Because family obviously said pay when you can, & didn't threaten, they didn't get paid - it's not me that will receive anything it's other Family, but I witnessed Dad saying on many occasions as soon as that cheque comes through i'll pay you back!

banxsuck

So family will be out of pocket to the tune of nearly 3K then, had he lived a week longer they'd have been paid back!
Horrible to just have to think of money at a time like this, but Family borrowed to get this money in the 1st place, because obviously he couldn't
I couldn't help out as was badly in debt myself - now feel terrible siblings have all this on thier plate