Bank Listed As Payee on Life Policy Question

[supersupps]

A client of mine called with a question i do not know.. His family member recently passed away and there was a life policy in force where the bank was attached bec they had a loan.. the attachment was about 12 years ago. the bank merged several times and now the bank cant seem to find any record of what is owed and the insurance company wont release benefits until they get a letter from the bank saying what is owed. Is there a 7yr statue on this? any ideas on how this client can get his money if the bank can't act or doesnt respond? is there legal remedies regarding this?

 

[LGilmore]

What information does the client have that says the loan is repaid? Start there.

I don't think a new owner bank is going to do much of anything if the debt is repaid.

 

[scagnt83]

They want to make sure the bank isnt owed anything.

Get a letter from the bank stating that the bank has no accounts receivable in the deceased's name. It would probably be sufficient.

 

[supersupps]

the loan has not been paid.. but the bank cannot find info bec the loan is 20 yrs old not 12 like I posted. The member had a life ins policy and took out a bank loan that was guaranteed by the life ins policy..

 

[ims01]

There is no statute of limitations on a contract.

Check the deceased records for a record of payment or a release. If that cant be found, then the only option is to get the bank to provide a release. If they refuse, threaten litigation. The bank knows they cant produce evidence and will acquiesce.

 

[ActingBoss]

There is no statute of limitations on a contract.

Check the deceased records for a record of payment or a release. If that cant be found, then the only option is to get the bank to provide a release. If they refuse, threaten litigation. The bank knows they cant produce evidence and will acquiesce.

"There is no statute of limitations on a contract."

Actually, there is one on mortgages, in my state 20 years after the end date of the mortgage, which is trivial knowledge and doesn't help the poster.

The answer is the mortgage will have in the principal loan amount the amount of the premium.

If the bank can't deduce the principal amount, then IN MY STATE the mortgage is null and void from inception and ALL payments are due the payor WITH INTEREST.

Likely the poster is just being foiled by an clerk who doesn't know how to respond.

A dual complaint, filed with DOI and Dept of Financial Institutions will compel the proper answer.

 

[BNTRS]

There is no statute of limitations on a contract.

Check the deceased records for a record of payment or a release. If that cant be found, then the only option is to get the bank to provide a release. If they refuse, threaten litigation. The bank knows they cant produce evidence and will acquiesce.

This is incorrect, every state has a statute of limitation on a debt contract.

If the bank cannot provide evidence that the debt exists, then they do not have a legal right to collect it. It would behoove the executor/executrix to hire an attorney and pursue this avenue, that would hasten either the process of releasing the obligation, or making the bank find the papers.

 

[Norwayguy]

There is no statute of limitations on a contract.

Check the deceased records for a record of payment or a release. If that cant be found, then the only option is to get the bank to provide a release. If they refuse, threaten litigation. The bank knows they cant produce evidence and will acquiesce.

I'm sorry your post just made me think of the Mortgage mills that created paperwork for mortgages that were phony.

 

[supersupps]

I suggested my client refer with a lawyer. thanks for the advice. Referring to NY state law, would anyone here know how long a bank can stay on as a collateral assignee on a bank loan that was unpaid 20 years ago and the bank was attached to a life insurance policy at the time of the loan, as a guarantor of payment incase the client didn't pay, which he didnt,

 

[Sales71]

My opinion is the bank is still owed the money. Since it was never paid. Who owns the bank?

Maybe the beneficiaries can call the old or new bank and try to settle this debt with them.