Responsibilityfor Deceased Mother's Car Finance Debt

My mother passed away suddenly owing a substantial amount on her car. She was with the RBS and did not have PPI. She had, however, paid off more than half of the debt owed. The bank will not discuss our rights/responsibilities as her children other than to keep asking for the money (and the car).
I need to know where I stand on this legally speaking? Can I just hand the car back or must I continue paying for it? Obviously I don't much fancy their suggestion of handing the car back and continuing to pay for the finance.
Apologies if this should have been posted in the legal section.
Thanks for your help

Firstly, May I offer my condolences on the death of your mother.

They can take the car back now if they wished. Also they can pursue the estate of your mother for the rest of the money. You as a child are not personally liable for your late mothers debts unless you or another child acted as a guarantee on the car loan.

Do you have a solicitor acting for the estate of your late mother? If so refer the RBS to the solicitor and request that they do not contact you or your family directly. I certainly would not continue to pay the finance unless you want to hang onto the car for yourself.

I had a similar problem with PTSB where they perused my family for outstanding finance after the death of the borrower. They were relentless until we set our solicitor on them. They were insisting that they be paid now and in full. They were told no money was available until probate was completed and insurance monies were released. This still would not do them and they wanted the family to pay up themselves. The solicitor advised them if they continued to contact the family he would sue them for harassment. Only then did the hassle stop.

I will leave this to some of the legal experts to confirm, but this is my view on it.

If it's an ordinary loan for a car, the car belongs to the estate and the estate owes the money to the lender. If there is insufficient assets in the estate to pay off the loan, you should sell the car and pay off the loan.

If it's a hire purchase agreement, the car belongs to the finance company. You probably would have the option of returning the car and walking away from it. But if the amount outstanding is less than the value of the car, you should seek an agreement with the Hire purchase company.

Have you got the loan or HP agreement? Does it cover death?

Brendan

If it's a hire purchase and if over half of the hire purchase is paid you can end the agremeent early by handing back the car under the halfway rule. It's a requirement of Hire Purchase agreements that this condition is in the contract. It's important that you clearly state this rule and don't just surrender the car. You need to find out how much has been paid off the agreement. if it's slightly less than half then there is still the option on handing the car back under the halfway rule and making up the difference.

I suggest you contact IFSRA (Irish Financial Services Regulatory Authority) 1890 777777 or check out their site at www.itsyourmoney.ie. the Hire Purchase provider doesn't seem to want to remind you of this right under the contract.

All inquiries about the debt should be referred to the estate. It is not up to you to sort out or decide whether or not payment should be made - indeed it would be very improper to do so without the permission of the estate and because probate has not been completed. Remember, the estate, not you, legally owns and is responsible for the car.

They should not be seeking money from you or your family and if they are, this would be regarded as illegal and unethical practice - should be reported to the financial regulator.

My advice would be to write back saying the person who owes the money is deceased and give details of whoever is the Executor of the estate. Alternatively, you could pass on the requests for money to the Executor and get him/her to deal with it (as this is their function). If they persist on contacting you, set the financial regulator on them.