Loan

fairlady_2

My husband died 2 years ago and my solicitor is still dealing with the estate.
My husband took out an insured loan in his name for use with a small business which he ran with a fellow director who has also since died.
The loan company tell my solicitor that the insurance on the loan is invalid because my husband did not declare a medical condition,however despite my solicitors trying to obtain what this undeclared condition was the loan company have, to date, refused to supply this information and I stand to have to pay £15k from any estate monies. I knew nothing of this loan until the death of my husband.Could anyone advise me,I would be grateful of any response.Fairlady

lynzpower

Welcome fairlady to MSE

I would be asking your solicitor what basis they have for not stating.

I dont want to sound impersonal but wondering did your late huisband die of something that was a progressive illness that they did not know about?

Cumbrian_Male

Was it a business loan or personal loan?

If it was a business loan, is the business still trading? What happened to his share of the company upon his death prior to his business partners death?

If it was a business loan it should be listed among the assets and liabilities in the company accounts.

Hope everything works out in the end, if the company won't tell you on what grounds they refused the claim, instigate the complaints procedure and follow it through deadlock to the ombudsman.

fairlady_2

Thanks,unfortunaely the company records are poor,I think that the loan was taken out personally but put to buniness use.Company records are somewhat vague to say the least.I think Its a muddle,/ no way out other tha the financial Ombudsman....although that might unearth some issues(nothing illegal!!) of proper recording by the co. regards,Fairladu

fairlady_2

Thanks,unfortunately the company records are poor,I think that the loan was taken out personally but put to business use.Company records are somewhat vague to say the least.I think Its a muddle,/ no way out other than the financial Ombudsman....although that might unearth some issues(nothing illegal!!) of proper recording by the co. regards,Fairladu