Outstanding loan should I remind them?

Fey_2

My friend committed suicide in January 2012 and I am the executor of her estate. She left behind a list of debts (friends, credit card companies and a payday loan). After selling her flat, I am in a position to off the debts.

The payday loan company were called in June 2012 and told that we were in the process of sorting out the estate and faxed a copy of her death certificate. We have not heard anything from them and have no paperwork. Their website has a security certificate expired message. Google search takes me to another company with the same address and phone number, the company exists but trades under another name.

Should I contact them or as they have not contacted us, should I just let sleeping dogs lie?
If I do contact them, will they want accumulated interest, which will take the amount into the many thousands?
If I do not contact them will I be liable for the debt and have bailiffs knocking later?

I just don't know what to do.:(

HappyMJ

Personally I wouldn't pay any payday loan companies. They get their payment when the borrower is next paid. The borrower in this case didn't get a next payment from their employer so no payment due....not exactly legal so it's up to you.

The interest is frozen so no further interest due.

You don't to chase too much. A few letters should do and if no response just give up.

dealer_wins

I would contact them and get it paid off. Otherwise you will only storing up problems as you the legal executor!!

You-kip

Play dumb don't say a word.

Clive_Woody

Fey wrote: »

My friend committed suicide in January 2012 and I am the executor of her estate. She left behind a list of debts (friends, credit card companies and a payday loan). After selling her flat, I am in a position to off the debts.

The payday loan company were called in June 2012 and told that we were in the process of sorting out the estate and faxed a copy of her death certificate. We have not heard anything from them and have no paperwork. Their website has a security certificate expired message. Google search takes me to another company with the same address and phone number, the company exists but trades under another name.

Should I contact them or as they have not contacted us, should I just let sleeping dogs lie?
If I do contact them, will they want accumulated interest, which will take the amount into the many thousands?
If I do not contact them will I be liable for the debt and have bailiffs knocking later?

I just don't know what to do.:(

As executor of the will you have legal responsibilities and I am not sure of the full consequences of not meeting these but I would advise caution.

As much as everyone hates payday loans they are still legal and could chase you personally as the executor of the will.

I would advise contacting them by recorded post (not email or phone) telling them that you are the executor of the will and you want to settle the debt of the deceased. I believe as somebody stated they are not allowed to continue charging interest after death (but I would check and not make any assumptions). Give them 14 days to respond with a final statement of account and a final balance for payment.

Personally I would seek legal advice here as you are taking on a role that has responsibilities and legal implications and this does not appear straightforward.

poppasmurf_bewdley

I don't think it's up to you as Executor to search out those who are owed money by the estate of your friend. That's why you put an advert in a national newspaper, asking for anyone owed money by the estate to put in a claim by a certain date.

To be safe (to protect yourself) seek legal advice, it shouldn't cost too much, and the cost would come out of the estate.

vassa

LOL at some of the responses here. You've contacted them. Your time and effort is not free, ball is in their court, you do NOT have a responsbility to chase them up even if people may make out you do.

Thrugelmir

These are your responsibilities as an Executor.

What are my responsibilities and liabilities as a personal representative?

An Executor (‘a Personal Representative’) can be held personally financially liable for any loss resulting from a breach of their duty – even if the mistake is made in good faith.
This will include:

Failure to pay the debts and liabilities of the deceased
Failure to settle the affairs of the deceased relating to: Inheritance Tax, Income Tax and Capital Gains Tax
Failure to settle any claim against the estate
Failure to identify and correctly distribute assets to the beneficiaries (including those initially not known about)

Disappointed beneficiaries have up to 6 months to make a claim after issuing the Grant of Probate while creditors’ owed money by the deceased can potentially make a claim against the personal representative for up to 12 years after the death.

Personally I know what what course of action I would take.

vassa

Thrugelmir wrote: »

These are your responsibilities as an Executor.



Personally I know what what course of action I would take.

Where does it say in any of that 'failure to remind the company in question that the debt is still live'? OP notified them of the death so i'm sure a bill should follow. If they don't send it that's not OP's problem. It doesn't constitute non-payment if they're not responding to her does it? Although of course it depends what the actual leter they wrote said, but they should have had a response regardless.

Thrugelmir

vassa wrote: »

Where does it say in any of that 'failure to remind the company in question that the debt is still live'? OP notified them of the death so i'm sure a bill should follow. If they don't send it that's not OP's problem. It doesn't constitute non-payment if they're not responding to her does it? Although of course it depends what the actual leter they wrote said, but they should have had a response regardless.

In accepting the responsibilities of being an executor. It's best to undertake the duties in a professional and diligent manner. Irrespective of how one may act on an individual level if it was ones own debt or liability. Sometimes it's best just to do the right thing. Particularly for any relatives etc left behind.

vassa

Thrugelmir wrote: »

In accepting the responsibilities of being an executor. It's best to undertake the duties in a professional and diligent manner. Irrespective of how one may act on an individual level if it was ones own debt or liability.

They've informed the place they're taking over and are aware of the debt. They've had no response. What are you talking about?