Proof of debt after a bereavement

StuartJP

Hi

After coming across loads of helpful posts on this site during the last five months of incessant googling I thought I might register to see whether anybody could advise on our situation.

My Dad passed away in September last year. There were some debts we weren't aware of. Mum is now being chased for these even though there is no estate to mention.

The main one is owed to Aktiv Kapital. We had no knowledge of the debt and they are unable to provide any documentation proving the original loan.
After much hassling Mum has agreed to pay them a reduced amount of £1000 even though she is not happy doing so.
Can they really make Mum pay a debt with no evidence of the original agreement?
On top of this there are other issues we are far from happy with.
If we were to lodge a complaint could they revoke their acceptance of what Mum has agreed to pay and chase for a higher amount?
Thanks in advance for any help

Tixy

This debt was in your Dad's name only? did he have an estate at all? a share in a property with Mum etc?
His debts are only payable if there is a sufficent estate to pay off the debt.

If there is an estate and its that Mum doesn't want to sell the house then it might make sense for her to agree to repay it. But she should certainly be asking for proof of the debt before she does this. If they cannot or won't provide any proof then she does not need to pay anything. And should not.

RAS

Hi
Send a prove it letter.

Amongst other things, AK buy a lot of statute barred debt, which your mother would not have to pay, even if there is an estate.

MrsTinks

There is also the possibility that the debt wasn't actually your dads but someone with the same or similar name... They spotted his name in obituaries and WHAM... Ultimately they don't care WHO pays a debt so long as it's paid to them... and they won't care who they scare and worry to get their pound of flesh

dancingfairy

Firstly you've got to find out what debts your dad owed/did owe I would have thought.
I don't know whether it's possible to check his credit file as a starting point- not sure if this is possible for someone who's died or not?
I would go to your library or possibly purchase the Which book - called something like What to do when someone dies as a starting point.
I also would send off the prove it letter if post comes claiming he owed money and would expect to see proof before deciding what to do.
I presumed there are processes that have to be followed to tidy everything up even if no money was available and as has already been mentioned if there was any property jointly or anything. Hopefully the book mentioned will give you the info you need.
You might find more help at such places like your local Citizens Advice Buraeau as well.
df

StuartJP

Thanks for your help everybody folks, really is very much appreciated.

I think the statute barred comment is the key.

We asked AK if we could see the original contract. Apparently they asked GE Capital (the original lenders if all is as they say it is) for the contract but apparently GE no longer had it on file as it is so old.

RAS

StuartJP wrote: »

We asked AK if we could see the original contract. Apparently they asked GE Capital (the original lenders if all is as they say it is) for the contract but apparently GE no longer had it on file as it is so old.

Well unless they can provide documentary evidence that your father owed the money and that the debt is not statute barred, they should NOT even be trying to collect this debt.

Make plain that without this, you will complain to the OFT if they make any further claims.

dancingfairy

If they can't provide proof how can they expect you to pay - it's bonkers. I wouldn't pay out because some person/company claimed I/my famile owed money without proof.
df

rosyw

Firstly, sorry to hear of your loss.
Any debts owed by your dad are now debts of his estate, it is not up to your mum to pay themout of her own pocket. If there is not enough capital in the estate to cover the debts, then they simply don't get paid, end of. If you parents owned a house as ~"joint tennats", the house now belongs to your mum and is NOT part of your dad's estate, if they owned a house as "tennants in common" then 50% of the value of the house is part of your dad's estate, and sadly your mum may be forced to sell it to pay the debts IF they cannot be paid by other means.
Lots of creditors try to get money from the famlly of a person who has died, this is incorrect, and they should not do this, if they persist report then to the OFT etc.
Whatever happens, don't let your mum pay anyone unless the debt has been proved AND there is enough from you dad's estate to cover it. there is info on the Directgov site http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093.