Barclays loan

jonesMUFCforever

Sarn wrote:

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?

No they can't!
Don't worry (but make sure your mum has cancelled any direct debit in case they try for a payment) the loan debt belongs to your late father's estate.
Draw up a list of his assets (who does the car belong to now?) and confirm to the bank what this consists of. If the estate is negative then they will have to write it off.
Legally I do not know whether Barclays can 'recover' the car and sell it to recoup their money.
You don't say whether it is a HP type of car loan or a general Barclays personal loan which he used to buy a car (there is a difference).
My condolences.