Responsibilty for loan after death

regalpalms

Hi, can someone please advise. My dad died a few months ago and whilst notifying all the relevant authorities of this we learned he had taken out a bank loan. He was 78 with only a state pension as his income and it was for a period of 3 years. My Mum had no idea and nor did I. I wrote to the bank and explained the situation and they are now threatening my Mother with referral to a debt collection agency. She is in poor health and only has her pension as income. They say that although she didn't sign anything or have any knowledge as his nok she is now responsible for the repayment of it. She has had phone calls and letters and despite my writing to them to request they deal with me they refuse, even though my Mother has aked them to. Do I need to get legal advise on this?
Thanks for any help

bouncydog1

You need to establish how the loan was set up. Was it taken out in joint names and if so, did your mother sign the documentation? The bank will be able to let you have a copy of the agreement. If it appears to be in joint names but is not her signature then could it be possible that your dad signed the document for her?

If the loan was taken out only in your father's name, then it will need to be paid off from his estate. If he had no assets then I don't think that the bank can do anything as if it was in his sole name then your mum isn't liable.

If your father and mother owned any property is there a possibility that the loan was secured on that asset, which will probably make a difference as to how the bank deal with collection of the outstanding amounts.

Before you go any further you need to obtain copies of the documentation from the bank. Once you have this and can see precisely what it says you will then be in a position to choose your next course of action. You do need the full facts of the matter before rushing off on one course or another.

With regards to you dealing with the matter on behalf of your mother, your mum will need to write to the bank (you could draft the letter) explaining that she is requesting they deal with you regarding this matter going forwards. She could also ask that they only deal with you by letter and stop contacting her by telephone. If this does not bring about the desired result, I believe there are formal steps she can take, with your help to stop the calls. I'm sure others will be along to help.

regalpalms

Hi

Thanks for replying.

The loan was solely in my Dad's name and my mum did not know he had one let alone sign anything.
There is no estate, they live in a council flat and their only income was their pension. The small insurance policy that my Mum took out on his life just about paid for the funeral. The savings they had of just a few thousand have been subsidising their rent and living expenses, so there really is nothing.
We wrote a letter that my mum signed asking that all communication come to me. My Mums health is not very good and all of this has been very stressful, but they have ignored our request. We also have written and asked for copies of the loan agreement, again they have not been forthcoming with this. I can't see how they can give an unsecured loan to a man of 77/78 with only a state pension as income!! But they say age doesn't come into and he didn't have adverse credit, so it was appropriate to lend the money. He was of course above the age limit to have insurance for the loan.

iolanthe07

If your dad left no assets and the loan was only in his name, then the bank have to write it off. They cannot persue it and if they threaten your mum with legal proceedings then they are bluffing. Tell them politely to get lost.

CLAPTON

did he have any current or savings accounts with the loan compnay?

regalpalms

He had a current account but it was used only once a year. They saved weekly with a christmas club, as he had done for many years but they changed their method of payout to a cheque, hence why he opened an account. The cheque would get paid to him he would put it in his account and as soon as it was cleared the cash was taken out.

There was no items purchased with the loan as far as we can see. It seems that the cash was withdrawn which then contributed to their rent and living expenses which exceeded their income. He paid the loan every month, and we are assuming that again he used the cash from the loan to fund this.

I had the previous year completed forms for them to claim H/B but unknown to me he never signed them. I was given the impression by him at the time that they were all sorted in this area.

inmypocketnottheirs

Who is the finance company?

Clive_Woody

iolanthe07 wrote: »

If your dad left no assets and the loan was only in his name, then the bank have to write it off. They cannot persue it and if they threaten your mum with legal proceedings then they are bluffing. Tell them politely to get lost.

Spot on, the bank should be informed of this and then politely told to stop bothering you. Otherwise ask them about their complaints proceedure and then follow this.

regalpalms

Thank you all for your response. The company is Halifax.

We had a benefits advisor visit a few days ago that was referred by the housing officer and he has now taken all the paperwork to get some legal advise on it.

I will however, write again and make it very clear (again) that there was nothing left in the estate and my Mother will not be making any repayments.

bacard1

Who was the executor of his will?

regalpalms

bacard1 wrote: »

Who was the executor of his will?

He didn't have a will.