What will the consequesnces

[owler81]

Hi Everyone,

So, hear me out....
Mum passed away 4 months ago. She was 82 and in very poor health for the last 5 years of her life. 3 years ago she took out 2 credit cards and got into a mess. We didn't know about this until a while afterwards. She struggled and the card providers ( one in particular) was quite aggressive in their approach. Disgusting really.

we are in the process of sorting her estate. The sale of her flat will generate some money and this has been split across me and my 2 siblings. The expectation is that the two credit card debts will be settled from this - the amounts are £2700 and £3100.

What would happen if we just ignored them and refuse to pay? We feel like we want to take a stand. Please be assured that this is not an attempt at increasing our inheritance - we have already agreed that we would donate the money to Macmillan.

I know that in theory we should settle the debts, but what would happen with relatively small debts, such as these if we just ignore them?

Executorers are required to settle debts if possible. They can be personally liable if they distribute the money without paying debts first.

Thanks for posting - how would they know? If we just say " sorry there's no money to pay". I know this probably sounds awful, but we are asbolutely disgusted and angry with how she was treated.

The executor must pay debts first.

Have you contacted the company to ensure they freeze interest? You could ask for a settlement value which may be lower than the outstanding balance.

https://www.gov.uk/probate-estate/settling-debts-and-taxes

You are expected to pay debts from her assets.

Thank you. We have instructed them that she has passed away but we haven't had any further contact.

Who do you think “should” pay these debts then? The other customers of the loan firm?

by all means, contact the firms and explain the circumstances (including if you think there is any element of mis-selling), concluding with an offer to pay what you feel is reasonable (half? The original capital remaining?) in full and final settlement, they may agree. But YABU to push this onto the remaining customers of that firm in order to make a charitable donation

I do understand your point but to be blunt... I don't care. For me, the finger of blame points directly at these two mainstream lenders who saw fit to allow a vulnerable elderly person to borrow unsustainably.

Follow their complaints procedure then, but set aside the money as legally the estate is liable. It's not down to you to decide that a charity should receive tye money unless your complaint is upheld

It's not clear what the issue is. Are you suggesting that older people shouldn't be able to get credit? Or is your argument that the lenders should have been more understanding when your mum didn't pay?
If you think she was treated unfairly, the right course of action is to follow the complaints process, all the way to the ombudsman if necessary.

This. She owed the money, and if you don’t think that she should have done then you need to follow the correct procedures.

Your first duty as executor is to settle estate liabilities, whether you like it or not. You don’t get to pick and choose. Your refusal to pay increases the costs for everyone else.

I appreciate the posts and I do understand what everyone is saying. I am just so so angry and perhaps that is clouding my judgement.

YAB completely U, especially at you already knew about the cards.

Are you aware that Macmilln doesn't have such great ethics either. They're recently list around 25% of staff but are continuing to recruit at senior level.

Yes I have heard about that, however for us, they provided the most exceptional support and care, so we have based it on that. We will be making a donation regardless of what happens with these cards.

we found out about the cards 1 month before she died.....

My point is that it's not your responsibility to decide which organisation have behaved ethically or unethically. Thatchers we have the Financial Ombudsman and Charity Commission. Follow the proper complaints procedure and they will decide if either financial institution acted badly.

It doesn’t change your obligation I am afraid

What do you think they did? Because most of it now is online - giving her the credit cards

but yes you have to pay

She was only 79 when she took the cards out. If she was so frail and infirm at the time, why wasn’t someone helping her with her finances? Just pay the build for goodness sake - that’s not your money till the debts are settled. It sounds like you’re just trying to keep as much for yourselves as you can.

When your mother applied for the cards she would have needed to declare her income and any other credit she had. They would have assessed her ability to repay according to the information she gave them. Many, perhaps most people have outstanding credit on cards when they die. The had the goods/services ect so the outstanding money is owed our of their estate. I am 73 this will happen when I die. My mum is 94 this will happen when she does. If your mother owned a house to share between you, then the money to pay her outstanding debt is available and should be paid out of her estate. I expect the credit card people will pursue the debt. There are ways they can find out about your mum's estate and her assets. Anyone who wants to has access to any will for a start and the land registry will have a record of her owning property. If she owes money they can also get access to records of the savings she had. They will already know what her pension was and have evidence of her signing on the dotted line. Unless you can prove they bullied her into having an accounting can't see how you can avoid paying them and, in fact, as a family, you are honoured bound to meet any commitments she died with before you and your siblings enjoy her estate.

I did explain what we would do with the money if we didn't pay the cards, but you have either not read that, or chosen to go with your own narrative.

This. Your dm must’ve know the debts would have to come out of her estate? I’m not sure why you’re angry with the card companies as that’s their business, what they do. It’s like saying “how could that vendor sell cigarettes to someone with lung disease?

Everyone must take responsibility for themselves unless they have family members to do that for them.

@owler81 All I’m going to say is I work in this area within a large bank and if I was in your situation I wouldn’t go out of my way to pay the bills.

I won’t comment further. I just want to give you the opinion of someone who works in the industry and understands the actual processes taken by banks.

Hmm, I'd be dubious about some of the advice on here. I understand your anger however is it really worth potentially getting a criminal record etc for? I think sometimes you just have to let things go. Ultimately, it isnt a massive sum of money and I think the more you dwell on it the more you'll just feel angry, which isnt helpful when you're trying to grieve.

I disagree. Irresponsible lending is a thing and one of the most frequent complaints that are received by the FOS. We would have done down that route if mum had lived, however it's not possible now.