Debt collector chasing a debt from my late Dad..

Temrael

Hi there,

I'm not sure this is the right board for this but here goes (mods feel free to move it to the debt board if you think this would be better off there).

My Dad died last August and his estate was settled just before Christmas with me and my siblings getting equal shares.

I have been getting and sorting his post since August and a couple of weeks ago got a letter (addressed to Dad) from a debt collection agency chasing a medical bill from abroad. They stated that Dad had received £150 of treatment abroad for an ear infection in April 2008 and that as he had failed to provide insurance details they have been asked to collect it (plus £120 of debt recovery charges). I know Dad went on holiday in April 2008 to the place they listed and do have a vague recollection of him seeking medical assistance when he was out there, but I've no idea if he provided his insurance details at the time or if a claim was subsequently made.

I phoned the debt collectors and informed them Dad had died last summer and offered to send a copy of the death cert. They said someone would call back.

They didn't call back but I then received a letter saying, in essence...

"Sorry to hear he died, but the debt doesn't just get written off. Please provide details of the estate where we can collect the money from or details of the solicitor handling it".

Unimpressed, I wrote them an email stating...

a) The estate was settled months ago.

b) The fact they have, from what I can see from Dad's paperwork, left it two years before beginning to chase this makes it very difficult for me to investigate.

c) If additional costs have been incurred this is down to their client (as I can see from their supporting documentation, that at the very least Dad gave his full contact details so it should have been a quick matter to resolve).

d) I have no way of knowing or verifying whether Dad provided insurance details but that I knew that Dad travelled a lot and (being over 70) always paid a lot to make sure he was insured and that I thought it unlikely he would not have had these details to hand.

e) That I was unable to help them further other than to say that I had found on an old credit card bill what looks like a payment by Dad's to his bank for their own travel insurance a few days before he went abroad and that maybe they would like to try chasing his bank (as that's obviously who he had been insured with). But that given the amount of time they had left it I thought they wouldn't get much joy.

What do you guys reckon? How did I do?

Are me and my siblings going to be liable for this debt, given the length of time that has passed since...

i) the estate was settled
ii) Dad received the treatment

It's sort of not about the money though, I don't like them making out that Dad didn't pay his way or do things properly, because he went to great expense to arrange insurance! :mad:

fluffnutter

I'm not an expert but I can offer the following.

When an estate is being settled, the executor should repay certain debts in a certain order, e.g. mortgage first, rent, utilities, personal loans, crown debts (such as tax).

Debts should be repaid before any assets are allocated, therefore if the sum of the debts equalled or exceeded the value of the estate assets, then it seems logical that the beneficiaries would inherit nothing. Likewise, if there are no assets, then the debts can't be repaid and have to be written off.

However, you and your siblings do not automatically become liable for a personal debt just because you (I assume) are the beneficiaries of your dad's estate. To be personally liable you'd have had to either be a joint name on the, say, loan or mortgage, or a guarantor. Neither of these apply I assume. Indirectly you can end up paying a debt in the sense that it's deducted from the value of the estate. But...

The debt is not your debt. It's a question for the executor of his estate anyway, unless that was you!

Temrael

Thanks for that, yes I was one of the beneficiaries but not the executor (that was Dad's solicitor) the thing is though the estate was settled months ago and this is the first we have heard of this "debt".

fluffnutter

I very much doubt that the debt collection agency can do anything much to recover this debt legitimately. What they certainly can't do (although they may well try) is to intimidate, threaten or generally harass you or any of your family.

Like I said, it's not your debt. Pass everything to the solicitor who originally dealt with the estate. Or just ignore it. Don't contact them any more yourself. You'll just get more hassle.

Optimist

Write to the debt collectors giving details of the solicitors who acted as executors let them sort it out.

hippyadam

Optimist wrote: »

Write to the debt collectors giving details of the solicitors who acted as executors let them sort it out.

Seconded, it's not your debt let the solicitor handle it...

Temrael

Thanks guys, my only hesitation with giving out the solicitors details is that the debt collection agency may then waste lots of the solicitor's time, racking up legal bills that me and my brother and sister may then end up having to settle.

fluffnutter

Did they charge you a single fee for executing the will? Or a percentage of the estate? Either way, I don't see how they could then make additional charges. In fact, if it's a percentage of the estate, you may be due a refund

fluffnutter

Or just ignore them. They have no legal rights to chase you at all. In fact, it's harassment if they continue.

hippyadam

fluffnutter wrote: »

Or just ignore them. They have no legal rights to chase you at all. In fact, it's harassment if they continue.

That is unfortunately not true. If you ignore them, it is not harassment for them to continue to chase the debt. You have to explain why the debt is not due or disputed and who to take it up with first. Then if they continue to bother you it is harassment.

Do not ignore these letters!

If your concerned about potential costs, call the brief explain the situation and see what he says. :beer:

Temrael

Thanks for that, yup I've asked the solicitor what he thinks, will see what he says.