Debt collectors want debt paid now by us rather than waiting for estate to sell

chazsucks

My dad passed away last summer. One of the debts he had was car finance, he had £1000 left to pay for the car. I spoke to the car showroom where he had bought it and explained that we would pay it off in full once the estate had been sold.

Out of the blue we had someone from a finance company knock at our door last week saying we need to pay them £1,800 for the car, give it to them, or they will take us and then sue us for £3,000 for the costs of repossession.

We haven't been granted probate yet, therefore we haven't been able to sell the house to pay back debts. The other companies have been understanding and agreed that the debts are the estates to pay back, not ours and will wait for the sale of the house unless we decide to settle the debts ourselves early.

Now, I'm not sure where we stand - I assume our only option is to give back the car? Which is devastating basically as my dad has already paid around £12k for it, and I need a car so I would have to go and buy another one once we've given this one back anyway

RAS

Please ring National Debtline ASAP so you can sort this out.

Keep_pedalling

Yes you need to take advice, but I can see how this has happened rather than speak to someone in the show room you should have written directly to the finance company including a copy of the death certificate.

Also as you have released the car from the estate and are making use of it the wise thing to have done would have been to have paid off this dept as the car is almost certainly acting as security for the loan so and is not owned outright by the estate..

getmore4less

Where an estate is solvent.

Often the best way to deal with cars that are to be kept and used is for the prospective new owner to take on the car and keep up the payments or pay off the debt.

The estate finances can be sorted later, helps if the person taking the car is a benificiary and the car is just part of their share.


Car finance is often a secured debt, that needs checking
Having said that they should not be harassing you so the above debtline call is worth doing.

chazsucks

Thanks for the advice I will give them a call. The car isn't being used its Sorn at the moment and not taxed or insured. The thing is I can pay off the remaining finance (I couldn't when he first died, I've saved up) but I can't afford the extra £800 they've added and they've said they won't do it separately - the full £1800 now or they'll take the car back. Thanks again x

Keep_pedalling

You might want to talk directly to the original finance company first rather than the dept collectors. Explain the situation, you might find they accept the £1000 and call off the dept collectors.

Are you the executor of the will?

Mojisola

RAS wrote: »

Please ring National Debtline ASAP so you can sort this out.

Keep_pedalling wrote: »

You might want to talk directly to the original finance company first rather than the dept collectors. Explain the situation, you might find they accept the £1000 and call off the dept collectors.

Get advice from Debtline about how to handle this.

Keep_pedalling

Might also be worth talking to the sales manager of the dealership to see if he can be of any help.

g6jns_2

chazsucks wrote: »

My dad passed away last summer. One of the debts he had was car finance, he had £1000 left to pay for the car. I spoke to the car showroom where he had bought it and explained that we would pay it off in full once the estate had been sold.

Out of the blue we had someone from a finance company knock at our door last week saying we need to pay them £1,800 for the car, give it to them, or they will take us and then sue us for £3,000 for the costs of repossession.

We haven't been granted probate yet, therefore we haven't been able to sell the house to pay back debts. The other companies have been understanding and agreed that the debts are the estates to pay back, not ours and will wait for the sale of the house unless we decide to settle the debts ourselves early.

Now, I'm not sure where we stand - I assume our only option is to give back the car? Which is devastating basically as my dad has already paid around £12k for it, and I need a car so I would have to go and buy another one once we've given this one back anyway

The finance company is trying it on big time. The advice re the helpline is good. The supposed cost of repossession is ridiculous. In any case the finance company may have no right to possession. If they call again involve the police. In the meantime try and get the details of the finance deal from the dealer. It could be a lease rather than an outright purchase.

nelly12

Ring the finance company and explain the death. They should halt proceedings and send you a pack as next of kin explaining the options. All standard stuff. Don't bother with the car dealership as this could delay things further. To be fair to the finance company it sounds like they didn't know of the death. Sorry for your loss.