Policy Holder passed away - leaving outstanding debt

emily2009

I really need some advice on this if any of you are able to help. My father passed away in 2006 . . this accounts were still active then. They were very old accounts and he had been paying a small agreed payment to them all (I think £5 a month) for the years since he had been diagnosed with terminal cancer - the account pre-date his first diagnosis and before diagnosis he was making payments as per usual it was only when he had to give up work entirely (a few years into diagnosis when he was diagnosed with secondary that he had to make the agreements). Anyway, the point is I believe that he had PPi on all of these accounts (mostly credit cards) and when he tried to claim when he was first diagnosed with cancer they all refused stating he wasn't eligible (which clearly he was). THIS is why I would love for my mum to be able to reclaim, basically because they put them under so much pressure, he'd taken out the policies in good faith that if he were to become unemployed or suffer illness then they would make the monthly payments . . . and they didn't. They didn't honour the agreements and as such were mis-sold. BUT all of the accounts when closed still had a large value outstanding so, if we were to claim (we still have all the paperwork) can they take the amount awarded and allocate it against the outstanding amounts (even though these were written off in 2006) ?

I'd really appreciate some advice. I feel like my mum has been through so much and, as a couple they were put under so much pressure because of the banks mis-selling of PPI and eventual refusal to pay out even in the face of terminal cancer (I think most people would consider that an illness which affect your ability to work!!) I just don't want them to re-open a can of worms, and, if they do, they can't re-open the accounts and expect my mum to pay them? (they were all solely in his name)

Thanks in advance for any help

Nearlyold

What was the reason given to your Father as to why the PPI wouldn't pay-out?

dunstonh

so, if we were to claim (we still have all the paperwork) can they take the amount awarded and allocate it against the outstanding amounts (even though these were written off in 2006) ?

Yes they can.

emily2009

To be honest I'm not sure . . I was only 15 when he was first diagnosed . . My mum may remember. I just remember as a young adult him telling me never to bother taking out ppi as they don't pay out anyway

emily2009

Thank you . . . Could they chase the rest of the value ?

-taff

Your mother isn't liable for your fathers debts, but if his estate left any money, they can take it out of that.

emily2009

Thank you. No, his estate did not leave any money at all. Only the house which was mortgaged and went to my Mum.