Debt after Death

[beldin32]

Hi

Not entirely sure where this goes in the forums, so starting here.

My mother died in Oct last year. She had a credit card with Creation Finance, with an outstanding balance of 200+ .. she had a monthly direct debit of £7 that came out the joint account she had with my father.

She was on State Pension, was the carer for my father, who himself is in very poor health, stage 3 dementia.

When she died, my father in his wisdom, cancelled all her direct debits from the joint account.

Creation were notified of the death of my mother, and as far as we knew, had written the debt off (she had no estate, no life insurance, no property etc)

My father just received a letter from a Phillips and Cohen ? addressed to my late mother, stating that according to the Credit Consumer Act 1974 Section 84e, he had no right to stop the direct debit, that he was now required to reinstate the dd, and was also liable for £235 in late payment charges and fines.

My father is distressed over this, and contacted me as he struggles with day to day life, and doesnt know what to do or how to deal with this. He also admitted to me that this is not the first letter, they have sent him more than 10 so far apparently.

So my question being .. is he liable ? is this correct that they can pursue him for cancelling the DD for his wife who died, from their joint account ?

Personally, I am a bit hot under the collar from it lol, but would appreciate any advice on the legality of the letter in terms of the debt ?

Thanks if anyone can help

~If this the wrong section for this, please let me know and i will move it

[echat11]

Sorry for your family's loss.

Firstly I don't think they should have addressed the letter in your late mother's name. Raise a formal complaint against Phillips and Cohen. Follow their complaints procedure, receiving the letter in your late mothers name would have distressed your father. State the points below in your letter.

When Phillips and Cohen send their response, if you're not happy lodge a formal complaint with the FOS.

The debt is still owed by your late mother's estate. Cancelling the Direct Debit is the correct thing, because DD's are variable, who is going to check what monies is being taken out, your late mother has passed away.

The following is the most stupid thing I've read for a long time, Phillips and Cohen don't get it, your late mother passed away.

'addressed to my late mother, stating that according to the Credit Consumer Act 1974 Section 84e, he had no right to stop the direct debit, that he was now required to reinstate the dd, and was also liable for £235 in late payment charges and fines.'

Wait for Des to respond.

des8 can you please take a look.

https://www.citizensadvice.org.uk/fa...e-who-has-died

[des8]

Tell P&C to go forth and multiply.

When your mother passed away the debt was not extinguished, but remains to be paid from her estate.
The joint account immediately became the sole property of your father, and he was quite right to cancel the direct debit.

NORMALLY I WOULD SUGGEST:
Have P&C been advised of your mother's passing? (I know Creation were, but they may not have told P&C)
If not write and tell them, including a copy of the death certificate.
Also tell .them your mother's estate was zero.
Tell them that if they write to you or your father (who is elderly and suffering from dementia) for anything other than to apologize, and to confirm they are instructing their principals in like manner, the letter will be construed as
harassment and a complaint laid with the relevant authorities

HOWEVER
P&C mention Credit Consumer Act 1974 Section 84e,
Now section 84 is about Credit Tokens, but there is no paragraph "e"
Was your father capable of and did he actually use the credit card?
Was it perchance in joint names, or was he named as an authorised user of the card?

[beldin32]

Hi

Thanks for your replies. My father had no access to nor use of my mother's credit card, it was in her name solely. He has his own credit card separately (that he never uses as it confuses him).

She was his carer in life (it was a shock, she went into hospital for a stomach complaint, got sepsis in there and died from complications thereby in less than 2 weeks), and she actually managed his money, his medications, dressed him etc.

So yes, very much having threatening letters turn up addressed to her, causes immense distress, as on occasion he forgets she has passed.

I have written to P&C sending them details of her passing, and a copy of the death certificate, as well as stating what you have suggested, and am awaiting their response. I did ask them to address all future correspondance to me, not sure if they will.

I will update further and close it if it gets closed down.