Care home fees and the interest charged after death.

[Listentogold]

Mum died in September at that time she owed £7795 for the 6 weeks she was in the nursing home. Only received the results from the process of whether she had to pay or local health authority was paying 2 days before she died.
Mum was sent from hospital as she was at the end of life. But still didn't pass the rules for the health authority pay. I never signed any contract or was given the terms and conditions.
I received the invoice at the end of november. They were informed that I couldn't afford to pay it myself but it would be paid after probate. Mum's estate is going through a solicitor.
Today they have informed the solicitor that they will be charging 5% interest per week. Thank goodness my aunt is going to help me pay this ASAP. We will pay half each.
Why not tell me when I let them know.
I'm not disputing that I have to pay but it is now growing in total.

5% interest per week sounds completely outrageous.

Thats insane. However there's no way they should wait for probate as that can take months and months.

@Jaigh

then how should it be paid! It’s a debt from the estate and until the estate is settled and gone through probate they have to wait, just as any other bills would have to. The only bill banks can pay is the funeral bill. Anything else has to wait as the account will be stopped

it’s also wrong that they charge that amount of interest

Are you sure the interest isn't 5% per annum but calculated weekly so they add a tiny bit of interest on for each week you haven't paid.

If it's 5% per week that's loan shark behavior and I would be contacting your local press to expose them.

@Tinkerbyebye well wages still need paying, so in some cases waiting 12 months wouldn't cut it. I dont have the answers, and I agree that the interest is ridiculous.

You are aware most nursing homes make around 40% profit per week?

There is no reason at all to charge 5% per week - that is insane.

Good luck op.

Well given that I'm an accountant of care homes it's simply not true. Might be in some cases, in other cases there's closures due to lack of funding. Fully agree no need to charge the interest.

That is pure usury - your local loan shark or payday loan company might charge less than that.

Surely no care home can be remotely surprised that their residents are almost all elderly, very unwell and vulnerable and die frequently, thus adding commonplace complications with them receiving their fees promptly - not to mention the element of when councils have their lengthy decision processes as to whether or not they will fund a resident's needs.

I wonder if these same people also own soft-play centres for toddlers and routinely kit them out with expensive delicate furnishings and dry-clean-only fabrics throughout.

Im sorry for your loss. Can you appeal the Health Authority decision? Would the nursing home back with this?

I would ask them for a copy of their T & Cs and see how much the interest rate is quoted on unpaid fees. 5% a week is ridiculous.

Interesting.. I stand corrected... I got my information from the internet.. so what is the mark up?

I found it interesting looking round care homes. They all charged about the same amount.. an eye watering amount per week. (Trust me - childcare is super cheap in comparison)... but the 'not for profits' ..seemed to have less 'resources', staff and poorer amenities.. for the same money. I just couldn't work out where the money was going?

Charging weekly interest, although your mother is no longer here? The only 'caring' that care homes practice is in respect of grabbing the fees - they charge the maximum in return for condescendingly delivering the minimum.
During the Pandemic, when social services dumped me in a care home for rehabilitation, to prevent me bed blocking, I found and bought a retirement apartment. On the day I left the manager called me into the office and handed me an envelope with the final invoice in it requesting that I arrange payment promptly, ASAP. That was it. No wishing me well for the future, not even a brief goodbye. She couldn't even be bothered to see me to the front door.
I walked out of that place for the last time thinking "well, at least I'll be able to cook food I like and I won't wake up in the morning to the care home trademark odour of urine......"

How were you planning to pay the fees if you didn’t get funding? Was the plan always to pay the bill through the estate? If so, you definitely should’ve been informed of these fees and it’s weird they haven’t sent you any paperwork to sign. Lots of stress at a time when you don’t need it

Thank you for your support.
The home mum was in was actually very good staff were lovely.
This home is part of a group reading all the reviews they are a terrible firm.

Mum failed on getting funding because she was so ill.
Couldn't make it up.

As I've said the bill was being paid out of mum's estate.
Plenty of money. It is the fact that they didn't even have the desency to tell me about the interest.

The answer is that whoever asked the transfer decision is responsible. They then can recover it from the estate, if they aren't liable. Care homes aren't obliged to take people.
Local MPs are good at this sort of thing, but you seem happy to pay. It should concern us all that at the end of life you can be chucked out of hospital and have to pay for the privilege, with interest on top.

As others said, check that it's not 5% a year. But if it is weekly, I'm guessing it's because probate can take forever. And a lot of people would be able to pay if off but would prefer not to. So if pressed (like this!) will find a way.

I would check if the bill can be paid from your mums estate before probate. Funeral expenses can be paid direct from your mums accounts. Maybe this can too.