Van "Hire Agreement" who pays when the signer has died

dcs1968

Please help,

This is a hire agreement not hire purchase, the van was hired for 3 years, but unfortunatly the signer of the the contract died (my Mum)

we have sent the death certificate to Citroen, their reply was basically transfer name to another family member or they will sell the van and if there is any shortfall they will claim from the estate.

I have read the agreement and there is no mention of what happens if the the person dies during the contract term?

There is a year left to run on the hire.

My dad is a OAP and cannot afford to pay for another year.

WE really dont need this at this already painful time Help please.

Darren

Rafter

Darren,

You have to look at this like a loan. As your mum can no longer pay, the loan goes to her estate. If she has any savings or assets then these will be used to pay off any shortfall. Hopefully the van is worth more than the outstanding balance of the hire agreement.

Doesn't sound like you want to transfer it if nobody wants the van in the family or can afford the payments.

The contract doesnt have to say what happens when the person dies - it is standard under lending laws that the loan stops if the estate cannot repay what is outstanding.

Good luck

R.

dcs1968

thanks Rafter,

Just one question, the shortfall is what the van is worth at the end of the 3 years or the remainder of the last year of the agreement?

thank you for your nice responce

darren

theoretica

Indeed, it is rather odd what the shortfall might be. Are you sure you got someone who knew what they were talking about? I can see that they might have a case for whatever the cancellation fee of the hire agreement was to be claimed from the estate but selling the car seems irrelevant. Is there money in the estate, because if it isn't there they can't have it!

inmypocketnottheirs

If I understand correctly, there is around a year left on the agreement?

You need to ask what the settlement figure is and how much the van is worth to calculate the liability. Then this will give an indication of how much the finance company will be looking to reclaim.

They will then expect this to be paid out of your mum's estate. Simply if there isn't anything, then they can not get what isn't there.

Debt_Free_Chick

Agree with others - any money owed on the agreement is now a liability of the estate. However, the van also goes in to the estate as an asset and could/should be sold to repay the debt on the agreement, if necessary.

inmypocketnottheirs

Debt_Free_Chick wrote: »

Agree with others - any money owed on the agreement is now a liability of the estate. However, the van also goes in to the estate as an asset and could/should be sold to repay the debt on the agreement, if necessary.

Yes but no! It's on a rental agreement, so only the liability for the rest of the term figures.

Debt_Free_Chick

inmypocketnottheirs wrote: »

Yes but no! It's on a rental agreement, so only the liability for the rest of the term figures.

Sorry - yes.... "...it's not hire purchase" didn't seem to register with me