Deceased with outstanding LOAN with Hitachi Capital

Twilighter

Hi, I was wondering if anyone could please give me some advice

My nan in 2009 brought a sofa from DFS (finance over 4yrs 0% interest) for a very close family friend.
This family friend was very close to my nan, my nan classed her as another grandaughter, and brought her a sofa to help her out as she has been good to my nan over the years.

However, my nan sadly passed away in October 2011 due to lung cancer (diagnosed in September 2011) and this family friend became my nans permanent carer helping me and my mum out when my nan became seriously ill ... and now there is an outstanding amount of £389 still left to pay.

My nan had no estate, we havent applied for grant of probate, and the funds left in my nans bank only covered half of the funeral directors bill. So all the funds left went towards the funeral and we had to find the rest of the money out of our own pockets.

I informed Hitachi Capital of my nans death, sent over all the documents they requested and said they will send it off to their solicitors.

The solicitors have got back with me saying that they understand no estate has been left but now its the persons responsibility who owns the sofa to pay the remainder of the balance, or sell the sofa and pay off the debt.

Is this actually right? Can they push the debt on to the person who has the sofa even though it the finance agreement was in my nans name.

If anyone could give me advice I would be really gratefull

Thanks in advance for taking your time and reading this post

BitterAndTwisted

Did you tell them that the sofa was purchased for someone else?

In any case, if there's no money in your Nan's estate there's no money to pay them with. No-one can inherit someone else's debts like that.

A crappy two year-old DFS sofa would probably be worth less a tenner now so if you wanted to be completely mischievious send them that. Or tell them to jog on.

molerat

Sorry for your loss.

No, the debt belongs to the person who signed the deal but a lot depends on exactly what type of agreement it actually was. I suspect it was not HP but a loan, the agreement will state which. If a loan tell them to do one !! If HP then technically they still own the suite so I would ask them when they want to come and collect the goods, I suspect they will then quietly disappear and never bother you again.

jd87

Yeah definitely sounds like they're trying it on. You shouldn't have told them that someone else has the sofa now, but either way, the most they can have is the sofa back, and they won't want it.

tell_it_how_it_is

Have a read of the link below. It mentions the goods are not owned until the last payment is made, but that they'd have to get a court order to reclaim the goods (with over a third paid).

It mentions ringing the National Debt Helpline on there, so it might be worth getting the paperwork together and giving them a ring to clarify.

Either way, I suggest as mentioned above they will just decide to leave you alone, rather than arrange to collect it.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093

fatbelly

Twilighter wrote: »

My nan had no estate, we havent applied for grant of probate, and the funds left in my nans bank only covered half of the funeral directors bill. So all the funds left went towards the funeral and we had to find the rest of the money out of our own pockets.

I informed Hitachi Capital of my nans death, sent over all the documents they requested and said they will send it off to their solicitors.

The solicitors have got back with me saying that they understand no estate has been left but now its the persons responsibility who owns the sofa to pay the remainder of the balance, or sell the sofa and pay off the debt.

Is this actually right?

No

I've seen these agreements and they are NOT hp. They are an unsecured loan. Did you check the agreement?

Hitachi usually take county court action to recover the outstanding balance. They can try it in this case, taking action against the estate. But it would be pointless if it is agreed there is no estate.

Twilighter

Hi and thankyou for your replies so far.

Ive had a look at agreement again....and your right it is a LOAN aggreement with Hitachi Capital.
My nan has never owned this sofa ... on the DFS agreement form it quotes our family friends address as the delivery address, but the agreement is in my nans name and address.

I have proved to the solicitors that my nan has left no estate, i have showed them a closing statement of my nans bank with 0 funds in, so thats why they are saying the family friend who my nan brought the sofa for has to either sell sofa and pay outstanding balance off or keep paying the repayments. Can they do this?

Tixy

Twilighter wrote: »

Can they do this?

No. Simply write back to them and reiterate that there is no estate from which to repay nan's unsecured loan with hitachi and that you consider this to be the end of the matter.

Errata

It doesn't matter where the sofa was delivered to, nan was responsible for the loan and it can't be settled from her estate as there's nothing left in it after the funeral costs were met - they have priority over all other debts.
You may wish to phrase this slightly differently, but I suggest you tell them to buqqer off.

poppasmurf_bewdley

Send them a letter saying the friend has now sold the sofa as they requested, and enclose a cheque for £10 for the amount received. End of story.

Don't forget, it's not the fault of the finance company that they are not getting their money, it's just circumstances. They have probably not made a profit on this deal, but they probably haven't made a loss either.

CHR15

Tell them it has developed a fault and you want a new one.

I'm sure their story will change then, it will all be up to the person who signed the agreement to sort it out.

I don't think they are being unsympathetic, they are being down right callous. Tell them to stick it up their 'arris.