Father died owing Creation Credit. Creation contacted Phillips and Cohen Ltd

vivvov

Hello All

My Mother just called me in a panic so I thought I'd write in for advice.

My parents had recently bought a couple of sofas from Harveys furniture outlet and had take out a credit agreement to spread out paying off the purchase monthly over a one year period.
Total cost of furniture was 1850.84.
They paid an initial deposit of approx 360.84 to Harveys on 19th of august 2016 via Dad's master card (sole name on account) and the sofas were delivered in November. The credit agreement was undertake via a company called Creation and regular direct debits started on the 19th December from my folk's joint current account..3 payments have gone out since..amount paid off so far 453.96.
Unfortunately, in the intervening period, my Dad died (mid December) and subsequently we've organised the change over from a joint current account to my Mum being the sole name on account.
Direct deductions for the sofas have not stopped and the debt was cotinuing to be paid off.

Not sure why, but today my Mum decided it would be a good idea to inform Creation about dad passing away.

Mum was informed by a representative that the account would be stopped and Phillips and Cohen Ltd would be notified. Phillips and Cohen would then contact my Mother.

Mum then called me upset.. because she googled Phillips and Cohen Ltd..saw Debt Collection and panicked. She's 77, has a heart condition and has never been in debt in her life. She now just wants to pay off the remainder owed in one go.. but doesn't know what to do.

I've not got an answer for her but said that I'd post a query on the forum and hopefully have advice for her asap.

Thanks for advice in advance.
Regards

wealdroam

vivvov wrote: »

Hello All

My Mother just called me in a panic so I thought I'd write in for advice.

My parents had recently bought a couple of sofas from Harveys furniture outlet and had take out a credit agreement to spread out paying off the purchase monthly over a one year period.
Total cost of furniture was 1850.84.
They paid an initial deposit of approx 360.84 to Harveys on 19th of august 2016 via Dad's master card (sole name on account) and the sofas were delivered in November. The credit agreement was undertake via a company called Creation and regular direct debits started on the 19th December from my folk's joint current account..3 payments have gone out since..amount paid off so far 453.96.
Unfortunately, in the intervening period, my Dad died (mid December) and subsequently we've organised the change over from a joint current account to my Mum being the sole name on account.
Direct deductions for the sofas have not stopped and the debt was cotinuing to be paid off.

Not sure why, but today my Mum decided it would be a good idea to inform Creation about dad passing away.

Mum was informed by a representative that the account would be stopped and Phillips and Cohen Ltd would be notified. Phillips and Cohen would then contact my Mother.

Mum then called me upset.. because she googled Phillips and Cohen Ltd..saw Debt Collection and panicked. She's 77, has a heart condition and has never been in debt in her life. She now just wants to pay off the remainder owed in one go.. but doesn't know what to do.

I've not got an answer for her but said that I'd post a query on the forum and hopefully have advice for her asap.

Thanks for advice in advance.
Regards

If she wants to pay it off in one go, then perhaps the best thing to do is for her to ring Creation again and tell them that.

bris

First things first, who is the executor of the estate.


Was the finance in your dads name only, does your dad have an estate?


if there is no assets then they don't need to be paid.

Keep_pedalling

Your mother was correct in informing them of his death and assuming the credit agreement is in his sole name they would have to stop taking payments. The outstanding amount owed is a debt owed by his estate, so providing his estate had sufficient assets to pay it off (after funeral costs) it will need to be paid. If that is the case best to sort it ASAP so you mother can forget the whole thing.

If his estate was insolvent things get a bit more tricky as it will not automatically be written off as under certain circumstances joint assets can be pursued, although that is unlikely for this level of debt.

vivvov

Thanks
There's money there to pay off the outstanding debt..so no problem there and Mum intends to visit RBS tomorrow and try and get advice from the staff (very helpful and known them for decades) in order to pay the outstanding amount. However not sure if she'll be able to now that Creation have put a stop on the Credit agreement.
I'm 200 miles away so can't look at the Credit paperwork but Dad initially paid the deposit with his credit card (not a joint card) and then this linked to my folks joint current account with RBS....then Dad died and the account became a Mum as account holder with account holding a record of Dad as deceased.
No doubt it will blow over and get resolved without Mum getting anymore upset.
Thanks

DomRavioli

Keep it on one board please. No need for multiples.

https://forums.moneysavingexpert.com/discussion/5614342

Fosterdog

My condolences on the loss of your father.

Although they are a debt collection company they do also deal with matters like this on behalf of a few finance companies, they will be in touch with your mother in due course. She will have to provide a death certificate and details of the executor of the estate. They will then discuss options of payment or returning the goods, in your case the sofas can be paid for outright and then they become assets of the estate.

in_the_Cotswolds

The same thing happened when my mother died last year. We informed the bank and they immediately shut her account down. This is to stop payments coming in and going out that may have to be repaid or reclaimed. They should pay all outstanding accounts that are in your fathers name provided there is enough money in the account.

Does the bank have a bereavement team? Mum was with the Nat West for 50+ years and to be fair they paid all the accounts for the funeral I sent them quickly.

Any questions please ask.

childofbaahl

I dealt with P&C when Tesco passed my late mother's account to them for payment. I was administering the estate and called P&C to explain. They answered my questions and the issue was settled without incident.


As you say your mother intends to pay off the debt so P&C won't cause any issues but it may be for the executor to handle and not her as the debt is due from your late father's estate.