Help with settlement figure on late mothers loan

swanner

Can someone please help as Im at my whits end

My mum did suddenly almost two years ago, we (the family) knew she was paying off a loan with Lloyds, we are now finally in a position to settle it but upon contacting Lloyds TSB they cannot trace any loan...even tho we have the paying in book that she used 2 weeks before her death.
Ive contacted our solicitors who have had no replies whatsoever, I telephoned the Lloyds bereavement team who couldnt help, I visited the branch this afternoon and they couldnt find anything except they think the loan may have been sold off but dont know who too!
We have realised that my mum shredded everything (!) so are left without a paper trail except one letter which we remember saying Mum owed around £11,000 but over the past two years of family drama and selling her home has been lost.....
No idea where to turn but this is the final part of getting her estate sorted and for past 7 weeks no one seems able to help me. I realise that the letter should have been put in a safe place but i honestly thought once the payments stopped they would write saying pay us and nothing turned up. We only sold her flat 6 weeks ago so know no chasing letters were sent....
Can anyone please point me in the right direction?
xx

DebtFree14_2

First things first, don't panic!! I'm sorry for your loss.

The bereavement team at Lloyds should help you on this matter. Are you sure that the loan wasn't covered by insurance? They may have wiped it completely on notification of her death?

Either way Lloyds should be able to trace it as it is only 2 years old. They have to keep records back that far. The ball is in Lloyds park here and they should provide you with all details of the loan including any insurances she may have taken out with it.

You need not panic. Time is not of the essence and sadly your loved one has passed away. Her credit file is of no interest to anyone. Speak to Lloyds again and inform them that unless they provide you with information about the outstanding debt you will make no further effort to pay it. Even if the debt was sold they should still have a record of this.

While you are there please also make a formal complain about their handling of a deceased loved one. The whole point in having a bereavement team is to make time like this easier. They are not doing their job!!

Good luck and as I said please don't worry

jonesMUFCforever

Was the paying in book used to pay into her bank account in order to meet the monthly repayment?
If so then the loan account number would be on the statement.

Lloyds_Bank

swanner wrote: »

Can someone please help as Im at my whits end

My mum did suddenly almost two years ago, we (the family) knew she was paying off a loan with Lloyds, we are now finally in a position to settle it but upon contacting Lloyds TSB they cannot trace any loan...even tho we have the paying in book that she used 2 weeks before her death.
Ive contacted our solicitors who have had no replies whatsoever, I telephoned the Lloyds bereavement team who couldnt help, I visited the branch this afternoon and they couldnt find anything except they think the loan may have been sold off but dont know who too!
We have realised that my mum shredded everything (!) so are left without a paper trail except one letter which we remember saying Mum owed around £11,000 but over the past two years of family drama and selling her home has been lost.....
No idea where to turn but this is the final part of getting her estate sorted and for past 7 weeks no one seems able to help me. I realise that the letter should have been put in a safe place but i honestly thought once the payments stopped they would write saying pay us and nothing turned up. We only sold her flat 6 weeks ago so know no chasing letters were sent....
Can anyone please point me in the right direction?
xx

Hi swanner.

I'm sorry for your loss and for the difficulties you've experienced when contacting us about this. For info on how to escalate this matter, please visit our website by clicking here.

If you need any further help, please let me know.

Cheryl

WillyWonga

Sorry to hear about your loss, I myself have been going through the same process recently.

As the property recently sold sounds like the loan in question was unsecured. Most companies will demand money to be repaid but the debts should go with the person. They will try it on. I would not contact Lloyds as I have a feeling they have internally written it off.

When you contacted them initially they would have seen its unsecured and the chances of recovering any money were very slim. Hence why no one can find it now.

themull1

Can you not just send a letter to Lloyds telling them that they have 28 days to put a claim in for the loan money before the estate is divided.

jonesMUFCforever

themull1 wrote: »

Can you not just send a letter to Lloyds telling them that they have 28 days to put a claim in for the loan money before the estate is divided.

You could try but is not legally enforceable.
The administrator/Executor is legally responsible to pay all debts of the deceased before releasing funds to beneficiaries.

bigadaj

jonesMUFCforever wrote: »

You could try but is not legally enforceable.
The administrator/Executor is legally responsible to pay all debts of the deceased before releasing funds to beneficiaries.

It would be useful to know who the beneficiaries are. If it is just one or more children then I'd be tempted to set aside an amount of money to cover this and then see if the owner of the loan comes back.

The OP seems to have taken reasoanble steps to ascertain any debts and whilst this isn't legally definitive then if the debtor comes forward in the future then is it reasonable to expect full payment and if so within what timescale?