Signed contract invalid, new one issued - is this legal?

b_Steppy

Thanks all, when he passed his estate was distributed evenly to his children. He did not have a will.

Thrugelmir

b_Steppy wrote: »

Thanks all, when he passed his estate was distributed evenly to his children. He did not have a will.

Who were the executors?

dunstonh

b_Steppy wrote: »

Thanks all, when he passed his estate was distributed evenly to his children. He did not have a will.

The executor of the estate appears to have made a mistake then (assuming that the loan was not repaid).

The estate should not be distributed until the debts are paid. So, if a debt was outstanding, you would expect the bank to ask for the money back.

PPI on loans often covers death. So, if the loan was repaid by the PPI then the PPI did its job. If that was the case and your mum is asking for the PPi to be refunded then that means the bank is required to put things in the position they would have been had the PPI never existed. So, with no PPI, the loan would not have been repaid and the debt would be outstanding. That debt would then be applied to estate and in most cases, the spouse would then have to pay the money owed.

If the PPI paid off the loan then complaining about the PPI would not seem to be a sensible thing to do.

Insider101

dunstonh wrote: »

If your father died and the debt was not paid in full from his estate, then they are allowed to offset the capital part of the redress (the PPI premium) against any debt that went unpaid.

They can do this without permission and dont need that in the letter. Its normal and requires nothing from your mother. They are just belt and bracing it to effectively show that she acknowledges what can happen.

This is the correct answer. Basically, if the debt was not paid in full, they have what is known in legal terms as the equitable right of set-off. All they are doing here is trying to pre-empt future problems by ensuring your mother is aware of and accepts this.

Insider101

b_Steppy wrote: »

Sorry, one more question please. The letter states that if the amount owed by my father exceeds the PPI amount, she will be held liable for the additional balance. Is this common practice and also can she be held accountable for the debt (if one exists).

No, unless she was party to the loan (in which case they are jointly and severally liable), the debt can only be recovered from your father's estate. Your mother cannot be held personally liable for it.