Need help quickly please

happyhaddock_2

Sorry to post with a question when I've not been on much lately but I know you kind people will be able to help me:)

As some of you know my Dad passed away on Monday and I've just learned that my mum is in a bit of trouble with her finances:(.

In particular there is an outstanding loan that my dad took out last year, he was sole signee, but the payments are funded from their joint a/c. The bank has rung my mum tonight as she has been struggling to make the loan repayments and have told her that even though dad signed the papers she is liable for repayment of the loan as it is a joint account:(.

Please can anyone tell me if this is correct as it seems wrong to me, as you can guess my mum is really worried now and just doesn't need this stress at the moment. Also she did tell them what had happened to dad but the bank said it didn't affect the fact that she was liable, although they did apologise for ringing:mad:

Please help!

Ames

I'm so sorry for your loss.

that is absolutely appalling of the bank - she is not liable for his debts! They need to be paid out of his estate (did he own half the house?), and if that doesn't cover them then they're wiped out.

I really think you should complain, but that's probably bottom of your list.

happyhaddock_2

Thanks for the quick reply Ames, there is no estate, they don't own their house, and dad had nothing of any value. What can the bank do?

Ames

Nothing, if there's no estate then the debt is written off. Not sure how you make them do it, but someone who does will be along soon I'm sure.

happyhaddock_2

Thanks Ames, was hoping that's the case will ring national debt line tomorrow and get their advice xx

Tixy

Hi HH

I am so sorry to hear about your Dad. I saw your post last week but this is still so very quick.

Very good idea to contact national debtline.

Is the loan from the same bank as the joint account? If feasible it might be a good idea to move any income she has to a new account with a new bank, to protect them from taking payments until this is sorted out.

happyhaddock_2

Hi Tixy, yes it's the same bank, have already set the wheels in motion to get a new a/c sorted xx

planning_ahead_2

I would suggest your mum gets any money in the account out and into another bank asap. They can't touch it whilst it's not with them. It's easy for them to take it and make your mum argue for it back all the time she has money in an account with the same bank that the loan is with.

Edit: oops...just read your post properly and note that your mum is sorting a new account asap.

Lexxi

I'm sorry to hear of your loss. If anyone phones then tell them your father has passed, get an address and forward on a copy of the certificate when you get it. Data Protection still applies so the bank shouldn't be discussing this with you or your mum. Debts are to be paid out of the estate before being distributed as per the will, if there is no estate then there is no way they can be paid, unless they are joint debts.
Hope that helps before whilst you wait for debt line to open.
If there was housing benefit in your dads name it willl stop from the Sunday following the death so your mum would need to start a claim from that date, she would still be entitled but the accont won't be credited until she starts a new claim
http://www.dwp.gov.uk/docs/dwp1027.pdf this is a pdf with lots of info on it, most wont apply to you butit does give details of financial help for different things. Grab a brew before you open it, it is really long! Apologies if you already have a copy

beanielou

Sorry to hear that HH
As has been said the bank are very much in the wrong.
It should be fairly painless hopefully to sort.

sparklymessygirl

Hi HappyHAddock - so sorry about your dad.

Just a quick thought - if there is a DD which usually pays off the bank loan regular payment from the joint account then she should cancel that so she isn't getting any charges on the bank account.

Sparkly