Personal Loans on death

lolpoc

I am dealing with my Mum's estate and she had a substantial loan with RBS. They have provided me with a settlement figure which is somewhat higher than I thought (nearly £2K higher). It was implied by a member of staff in a branch that the loan may have an early repayment fee so I assume that's what this relates to. I have calculated what I believe the balance to be base on last statement my Mum had, plus interest added every month etc and I do believe it should be around £2000 less than they have quoted. I have asked them in two seperate letters if the balance they have quoted includes an early repayment fee but they keep avoiding a direct answer. This implies they do not wish to disclose the information. I am wondering if anyone knows if a late payment fee should be applied on death as this seems unfair. My mother didn't 'opt' to repay the loan early and died very suddenly so was unable to sort her finances. Any comments would be much appreciated. Thanks.

CLAPTON

lolpoc wrote: »

I am dealing with my Mum's estate and she had a substantial loan with RBS. They have provided me with a settlement figure which is somewhat higher than I thought (nearly £2K higher). It was implied by a member of staff in a branch that the loan may have an early repayment fee so I assume that's what this relates to. I have calculated what I believe the balance to be base on last statement my Mum had, plus interest added every month etc and I do believe it should be around £2000 less than they have quoted. I have asked them in two seperate letters if the balance they have quoted includes an early repayment fee but they keep avoiding a direct answer. This implies they do not wish to disclose the information. I am wondering if anyone knows if a late payment fee should be applied on death as this seems unfair. My mother didn't 'opt' to repay the loan early and died very suddenly so was unable to sort her finances. Any comments would be much appreciated. Thanks.

maybe give us the details of the loan.

early setttlement can attract an early settlement fee but this is usally a couple of months interest only.

lolpoc

It was a personal loan taken out initially for 25K. They are asking for £19254.97 back but I calculate it to be roughly £17200. Obviously I worked this out based on the interest rate and a decreasing amount of interest being added each month. Is that the info you were after?

CLAPTON

well yes, but I was more thinking that with sufficient details we could check the figure for reasonablenss
so loan amount, period of loan, monthly payment , apr, secured or unsecured, number of payments made, any payment free period at the beginning of the loan or payment holiday .. that sort of thing

lolpoc

Hi, i have re done my calculations. It seems i work it out that we are due them £18257.06 but they are asking for £19254.97. The monthly repayment is £439.54 each month and the interest rate is £11.4%. I cannot find the original term but I know the last value on my mum's statement was £22640.61 as at 21/10/2010. Do you think the value they are quoting is fair?

Fabio_Fonseca

Seems high to me also, again I'd ask them to fully explain their settlement figure. Also ask them to confirm that your mother had no insurance / ppi attached to the loan. Best wishes.

iolanthe07

Also remember that you only have to pay this out of your mum's estate. If there is a shortfall you do not have to make it up out of your own resources, though some lenders will try moral blackmail.

CLAPTON

lolpoc wrote: »

Hi, i have re done my calculations. It seems i work it out that we are due them £18257.06 but they are asking for £19254.97. The monthly repayment is £439.54 each month and the interest rate is £11.4%. I cannot find the original term but I know the last value on my mum's statement was £22640.61 as at 21/10/2010. Do you think the value they are quoting is fair?

if your calculation is correct then their's is incorrect but you haven't provided sufficient info to check anything.

lolpoc

Thanks all for your reply. Sorry Clapton I realise I didn't give you all the info you asked for but I am not exactly sure when it was taken out and I do not know the term. I worked out my calculations from the last statement. It was an unsecured loan and there were no payment holidays and only one month of payment free period at the start of the loan (i remember her telling me this at the time). If I dont have quite enough in her estate to cover it, although I think I will have most of it, do I just write to them to tell them that?