Estate administration warning regarding debt claim by Consumer Rights Solicitors

Estate administration warning regarding debt claim by Consumer Rights Solicitors

It has recently come to light that false claims for outstanding debt are being brought against estates, with PRs now needing to ensure they are performing the proper due diligence before making payment.

When administering the estate of someone who has passed away, we always recommend placing adverts in the local paper and in the London Gazette to advertise the death to any unknown creditors. This allows said creditors to come forward to make a claim against the estate in relation to debt which is unknown to the Personal Representatives (PRs), with debtors having a period of two months within which to come forward.

If adverts are placed and creditors do not come forward within the specified timeframe, the PRs are protected against any potential claims. If no adverts are placed, PRs face the risk of claims being brought later down the line when the estate monies may already have been distributed, resulting in a potential personal liability.

We administer many estates throughout the year and do occasionally receive notification of a debtor unknown to the PRs which is genuine. We have however more recently received correspondence from a company claiming to be a genuine firm called Consumer Rights Solicitors and requesting payment of an outstanding invoice relating to a claim for PPI.

This scam has been noted by the Solicitors Regulation Authority (SRA) who have highlighted the need for extra care and due diligence when making payment to an unknown creditor.

The SRA have produced further information on this matter and this can be accessed via the following link: SRA | Correspondences misusing the name Consumer Rights Solicitors Limited | Solicitors Regulation Authority.

If you require help with regards to ensuring you are taking the appropriate steps to administer an estate and protect your position as a PR, or wish to discuss the above in further details, please contact us on 01752 660384 and ask to speak to a member in our Wills, Trusts & Probate team.