Loan outstanding on death

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fijmurphy50@gma

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Hi ,
Can anyone help please ,
My brothers wife died suddenly leaving a credit union loan behind her in her own name, is he liable for it, he’s shell shocked and struggling to cope, so doesn’t want to contact them directly, any help would be appreciated
 
Very sorry for your loss.

Your brother has an amount of admin to do with Banks/ CU/ Revenue etc., following his wife's death; it doesn't have to be tackled immediately, but it does have to be addressed.

He can appoint an agent (family member) or a Solicitor to act on his behalf. So you could help him out here if you wanted to.
 
fijmurphy50@gma said:
Hi ,
Can anyone help please ,
My brothers wife died suddenly leaving a credit union loan behind her in her own name, is he liable for it, he’s shell shocked and struggling to cope, so doesn’t want to contact them directly, any help would be appreciated
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Hi,

Very sorry to hear of your sister-in-law's death, may she rest in peace.

Loan Protection Insurance may apply to her loan if she meets the qualifying criteria. Hopefully this will apply in her case and help ease her husband's worries. Best to check the rules for her particular credit union.

Any savings she had may well be covered by the Death Benefit Insurance if she held same with her credit union. Some credit unions are still providing this type of cover either by a premium each year or others provide it if a certain amount is held in the account. You will need to check the rules of her particular credit union as they all differ. It is considered to help towards the cost of the funeral.

The Citizens' Information site should be able to help with advice also.
 
AFAIK, All credit unions, have loan insurance protection built into all loan agreements, where the loan is fully paid off, if the person taking out the loan, passes away.
 
fayf said:
AFAIK, All credit unions, have loan insurance protection built into all loan agreements, where the loan is fully paid off, if the person taking out the loan, passes away.
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The Irish League of Credit Unions appears to give this information so there are eligibility rules to be met:

Loan Protection Insurance​

Loan Protection Insurance is the cover your credit union provides for eligible members with credit union loans. The premium for this insurance is paid by the credit union.

Benefits​

Should a member with an outstanding loan balance die, the balance is repaid in full, subject to terms and conditions and certain cover limits which apply. You should enquire when making your loan application to see if you are eligible.

If you are an eligible member, this means that you can borrow from your credit union in the full confidence that your dependents will not be obliged to repay the outstanding loan balance in the event of your death*. You should check with your credit union for full details of cover under their loan protection policy.

Eligibility​

When borrowing from your credit union, a member is eligible for cover if:

  • they have not reached their 70th birthday (check with your credit union as this can be extended up to the 80th or 85th birthday).
  • the borrower can confirm they can actively and regularly perform all the usual duties of their occupation and further terms and conditions can apply. For larger loan amounts a medical questionnaire may be required.
 
fijmurphy50@gma said:
, so doesn’t want to contact them directly,
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Could you contact the Credit Union directly and notify them?

They will not discuss her affairs with you , but they might give you general information e.g. all loans are insured and are cleared on death.

Then they will write to the person nominated on the account - presumably the husband.

If they are not contacted, when a repayment is missed, they will send a nasty letter.

But they are in the community so probably know of the death anyway.

Brendan
 
Thank you all for the kind replies, he hasn’t had any correspondence from them despite her loan repayments went directly from her wages which obviously have ceased!so unless the payments are coming off her shares I don’t know, I will try and find out , thanks again
 
Don’t forget that if she has shares she may get ‘share insurance’ and depending on amount the family could get double or there abouts up to a certain amount. A few credit unions refuse to pay this or do not tell you about it but it is there anyway.
Know of a family that their parent had €30k loan and €15k in shares. The €15k shares increased due to the insurance to around the €30k. The cu tried to get the nominated person to clear the loan with the shares but they refused. Cu cleared the loan with their own Insurance on loans and family got the €30k.
Also ask for details of the loan and copy of the signed loan document. She may have refused to allow the loan to be paid by her shares if she died before the loan was paid off.
 
fijmurphy50@gma said:
Thank you, I’m just surprised they haven’t been intouch with him, it’s been 3 months now !
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They might not know.
A lot of loans paid from salary deduction are rounded up repayments, so they are being overpaid and it could take a few missed payments before they go into arrears.

You can call the credit union to ask about the process. They should have someone who deals with bereavement cases who will tell you what they need without discussing the specific case. I know one that I deal with will start the process if you point them to the death notice on RIP.ie.
 
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