Trying to close HSBC bank account of late father

justdamo

My Father passed away in October last year.

Since then we have been dealing with HSBC trying to close his bank account and pay off the creditors of the estate.

HSBC sent a form for me to fill in listing the amounts he owed on credit cards etc which I did however they say they never received it so we had to go into the bank and do it again.

HSBC are saying that because he had a credit card with them that any money left over after the funeral costs will be paid to the HSBC credit card account from his HSBC bank account and that we will have to get the other creditors to write off the debt owed to them.

This seems completely wrong to me and I don't understand how HSBC can decide that we can pay them but no one else.

Can anyone offer any help or advice on what to do?

Olipro

banks have the right to offset; any funds held in credit can be used against a debt at their whim.

premierfella

The same as when your father was alive, the bank has the right to "set off" assets and liabilities held with the bank. If the net balance held with the bank is positive, this becomes part of the estate. If the net balance held with the bank is negative, they make a claim on the estate.

Think of it another way. What if the credit card debt was an £1000 debit balance on one current account with the bank, and there was £1000 credit balance on a 2nd current account with the bank? Would you expect the bank to release the £1000 and then claim on the estate equally with other debitors for the £1000 debit balance?

slopemaster

I wouldn't be so sure that that is right.
IANAE, and certainly it might be, if it's in their terns and cond.
But then again, I know that HMRC get preference over other creditors - so as executor it might be well to be cautious and try to get expert advice.
Presumably you don't want to pay a solicitor. who are those people, the probate registry, I wonder if they would help if you contacted them?

AnonymousForObviousReason

Sorry for your loss. I thought the only person that could actually get payment from an estate before things are sorted out was the funeral director. (Could just be Wales though)

jonesMUFCforever

I agree first call is the funeral cost - then creditors.

Loughton_Monkey

justdamo wrote: »

HSBC are saying that because he had a credit card with them that any money left over after the funeral costs will be paid to the HSBC credit card account from his HSBC bank account and that we will have to get the other creditors to write off the debt owed to them.

This seems completely wrong to me and I don't understand how HSBC can decide that we can pay them but no one else.

I expect they can do that, but only because of their terms of business which give them the whip hand on offsetting before any executors can get their grubby little hands on it.

But what's the overall position? Is there going to be a net 'surplus' after funeral costs, once all the other assets are taken into account? If so, then I would tell them to pay off the credit card asap (don't want further charges/interest) and send you the balance immediately. [Provided you are executor - or get Letters of Administration].