Creditor refusing to deal with executors

monkeysrevenge

Hi all,

An estate I am executor for has now been fully valued, assets have been sold and funds are nearly ready to distribute to beneficiaries.

There is one outstanding issue that I cannot seem to resolve, where the deceased was paying a debt management company for an old debt that had been sold on. Despite numerous phone calls and e-mails, they will not speak to me about the account.

We have no paperwork regarding this debt, only responses to e-mails when the death certificate was sent, and only been given a verbal amount outstanding on the account - nothing in writing.

I have absolutely no idea where this debt has come from, as the deceased left no paperwork relating to it. It was discovered as a DD was deducted from the individual's account, I googled the debiting company's name and found a number to advise them of the death.

I am aware that there are several thousands of pounds that should be paid back to this company out of the estate (and there is more than enough to settle the debt) however whenever I contact them (4 times now, twice by e-mail and twice by phone) they say "since the account holder is no longer available, nobody else is authorised to deal with this account, so we consider the matter resolved".

As an executor, I feel very uncomfortable about considering this "resolved", especially when I outright asked them if the debt has been passed on, is repayable or has been written off, and that was their response.

My main concern is that at some point, someone at the company may decide to consider this "unresolved" and chase me and/or the beneficiaries for payment. I don't want to have distributed the estate and then that happen.

I'm thinking to perhaps withhold funds for this debt from the beneficiaries for a period of time until maybe 6/12 months have passed?

Or do I just go to this company, write them a cheque and say "here, just take the money!" and let that be that?

Marktheshark

You place an advert in the London gazette on behalfe of the estate of the deceased XXXX which states clearly any parties believing to have any claim upon the estate must make a written representation to the executors of the estate within 28 days.

pmlindyloo

Marktheshark wrote: »

You place an advert in the London gazette on behalfe of the estate of the deceased XXXX which states clearly any parties believing to have any claim upon the estate must make a written representation to the executors of the estate within 28 days.

According to this link the creditors can still pursue the beneficiaries.

https://www.thegazette.co.uk/wills-and-probate/content/100081

I suggest that you go to CAB and ask them to signpost you to a solicitor specialising in probate and try to get a free or reduced rate fee for a first appointment.

It may be that a solicitor's letter to the creditor asking for the full and final settlement figure and if no reply is received within *** days then it will be considered the matter closed blah blah blah would be sufficient evidence to prevent a future claim.

Alternatively, if you know the outstanding figure you could just pay it - they might return the cheque!

Morally the estate owes this amount and since it was a repayment plan it is likely that no interest was being added. Your call.

monkeysrevenge

You place an advert in the London gazette on behalfe of the estate of the deceased XXXX which states clearly any parties believing to have any claim upon the estate must make a written representation to the executors of the estate within 28 days.

The Gazette notice has been placed and time limit for claims expired several weeks ago. This is literally that last outstanding item until monies can be distributed.

According to this link the creditors can still pursue the beneficiaries.

https://www.thegazette.co.uk/wills-and-probate/content/100081

I suggest that you go to CAB and ask them to signpost you to a solicitor specialising in probate and try to get a free or reduced rate fee for a first appointment.

It may be that a solicitor's letter to the creditor asking for the full and final settlement figure and if no reply is received within *** days then it will be considered the matter closed blah blah blah would be sufficient evidence to prevent a future claim.

Alternatively, if you know the outstanding figure you could just pay it - they might return the cheque!

Morally the estate owes this amount and since it was a repayment plan it is likely that no interest was being added. Your call.

Agreed, the monies are definitely owed. A solicitors letter might be the right road to go down so that at least they have written warning.

getmore4less

Was it a paid debt management company?

They won't want to know now they are not getting paid.

What evidence do you have there was ever a debt other than this DD going to a debt management company.

monkeysrevenge

getmore4less wrote: »

Was it a paid debt management company?

They won't want to know now they are not getting paid.

What evidence do you have there was ever a debt other than this DD going to a debt management company.

I believe, on looking the company up on Google, they are a company who takes on bad debts from other companies (e.g. loans, credit cards) and sets up repayment plans with debtors.

There is no evidence in any paperwork in the deceased's property that this debt existed. Only know because of a verbal "the balance is £xxxx" on the initial phone call to them to advise on the death, before they stated that "neither they nor any third party would contact anyone in relation to this matter".

The latter is stated in an e-mail, sent in response to an e-mail copy of the death certificate, which is the only written communication from this company at all.

Yorkshireman99

monkeysrevenge wrote: »

The Gazette notice has been placed and time limit for claims expired several weeks ago. This is literally that last outstanding item until monies can be distributed.




Agreed, the monies are definitely owed. A solicitors letter might be the right road to go down so that at least they have written warning.

Don't waste money on solicitor's fees. The statutory notice protects you as executor. In theory they could pursue the beneficiaries but they are unlikely to do so. I would write, by signed for letter, one last time and ask them to confirm what, if anything is the balance within 14 days failing which you will distribute the estate.

BobQ

Yorkshireman99 wrote: »

Don't waste money on solicitor's fees. The statutory notice protects you as executor. In theory they could pursue the beneficiaries but they are unlikely to do so. I would write, by signed for letter, one last time and ask them to confirm what, if anything is the balance within 14 days failing which your will distribute the estate.

I agree. It also seems unlikely that if they cannot be bothered to claim a debt from a single, cooperative executor, they are most unlikely to want to pursue many, uncooperative beneficiaries.