Barclays loan

Amethyst

Hello,

My dad took out a loan 2 years ago (aged 74 years old) he died a week ago and we found out about it when we went in to advise the bank!

The manager asked if dad had left a will which we are fairly sure he didn't and then wanted to know if the estate would be able to cover the £5200 balance! (Which it can't)

Can anyone help/advise please as it is worrying my mum a lot, I told her I would contact some very nice people on her behalf!!

One thing I will say is that the manager said to use the money in the account to pay the outstanding bills, thereby reducing the balance - a very nice man!!!

Thanks in advance - I am still looking for any paperwork on the loan, dad was a hoarder!

Amethyst

jonesMUFCforever

Well the bank would know if the loan was insured or not!
Presuming that it was not - tell your mother not to worry. It was his debt and if his estate can't cover it then Barclays have to write it off.
If there is no will then your mother is the next of kin, all she has to do is confirm in writing to Barclays that the estate is insolvent and that should be the end of it.
Whatever is in his account (not clear here whether it is a sole or joint account) then use it towards the funeral expenses.
My condolences.

regularsaver1

Most banks would only insure up to age of 65 so he most probabaly was not eligible here

I also understood it that the debt can not pass to another family member if the estate can not pay it.

Amethyst

I have managed to get through all the papers now - loads to recycle! But nothing on the loan.

The bank account was in joint names but mum has now received a cheque book in her name only - wonder if they are going to drop the loan too?

I will get a letter typed for mum to sign as suggested and hope that they will leave the money which is in the account - I still can't get my head around them lending a 74 year old with an income of approx £400 per month, £8000 over 5 years - what hope do they have of getting all their payments??

Thank you both for your help

Amethyst

jonesMUFCforever

It's not you worry! Do you know what he spent the money on?

Amethyst

Hi, sorry for the delay in replying!

No idea what he spent the money on - none of it was given to me or my family - but he did visit his son a lot!

rog2

Amethyst wrote:

The bank account was in joint names but mum has now received a cheque book in her name only - wonder if they are going to drop the loan too?

I will get a letter typed for mum to sign as suggested and hope that they will leave the money which is in the account - I still can't get my head around them lending a 74 year old with an income of approx £400 per month, £8000 over 5 years - what hope do they have of getting all their payments??

Amethyst

Sorry, I have only just read your thread, but it does seem questionable that the bank would give an unsecured loan of that magnitude to a person in their 70s. Could I suggest that you talk to the Citizen's Advice Bureau before you send any letters to the Bank, as this may be a case of unethical lending.
Good Luck.

jonesMUFCforever

Why is it unethical?
We don't know here how he applied (whether in branch,by post internet or phone) but by whichever way Barclays would have had to carry out an affordability assesment on whether he would have been able to afford the repayments.We don't know what income he put down on the application or whether the repayments were causing financial hardship.
As the loan was unsecured Barclays were taking the risk that he might die before repaying the loan.
I work for a bank (not Barclays) and find your quote odd - if we don't lend on the basis of being able to repay we get accused of age discrimination.
Sometimes we can't win!

regularsaver1

I reember in the days i keyed loans - I was asking a man about his income in retirement and he went mad and sad he can afford it. I was jsut asking the question about his income. I was not being discriminative at all.

I now, in mortgages deal with lending in to retirement cases - if you can prove their income beyond 65 then it can be done

So I agree with ejones999 - they woulkd have had to do an affordability assessment,

it does not mean that as soon as we retire that our income is really low.

Amethyst

Thanks for your comments, as we were unaware that Dad had a loan we are unable to say how it was applied for - as far as income is concerned he had a state retirement pension and a part time job (earning approx £100 per week) - but I still find it hard to imagine him working till 79 as he was struggling to get there earlier this year!

Sarn_3

Dear Amethyst,

I am in the same situation as you with Barclays Motor Loans, my father took out a loan for a new car 2 years ago (he was 81 at the time) He told us not to worry as he had rcd death insurance with it.
He died last month and upon finding the loan details I find that yes he had rcd a policy booklet for payment cover, however the terms said no cover over the age of 65. He obviously saw the document & didn't read any further. The loan was is his name only, he left no will and only had a joint bank account with Barclays which has now been transferred into my Mums name. I have informed Barclays Motor Loans, but they have not even replied to me. I guess when they don't receive the next payment they may do. There is approx £9k including interest outstanding and no money to pay. I realise people are saying that banks should not descriminate on age, but I think they are being irresponsible giving 5 year loans to people in their eighties!! I am worried that as they are the same bank as their current a/c they will try to take what small amount is in her account thats left after paying for the funeral. Can they do this?