Detailed Answer — Step‑by‑step guide

When someone dies, unpaid debts become claims against the decedent’s estate. If a creditor provides a payoff quote for an estate debt, the executor (personal representative) or an interested party should verify the quote before authorizing payment. Below are practical steps to verify and, if needed, formally contest a creditor’s payoff quote under Rhode Island law.

1. Get the quote in writing and preserve communications

Ask the creditor for a written payoff statement that itemizes the principal, interest, fees, late charges, and the “payoff through” date. Save all emails, letters, certified mail receipts, and notes of phone calls. Written documentation is essential if you later dispute the amount or need the probate court to resolve the claim.

2. Ask for a full account history and supporting documents

Request an itemized account ledger showing all transactions, payments, advances, interest calculations, and the basis for each fee. Also request a copy of the original contract, promissory note, or security instrument (mortgage or deed of trust). These documents let you confirm whether the creditor’s balances and fees are correct.

3. Verify interest rate, daily/compound calculations, and fees

Check the original agreement for the interest rate, how interest accrues, and which fees the creditor may charge after default or after death. Recompute interest from the date last paid to the payoff date shown on the quote. Small calculation errors are common.

4. Confirm payments applied and posting dates

Compare the creditor’s ledger with the decedent’s bank records and cancelled checks (or electronic bank statements) to ensure payments were applied correctly and to the right account.

5. Check whether the creditor is a servicer or a third‑party collector

If a third‑party debt collector provides the payoff quote, federal law (the Fair Debt Collection Practices Act) allows you to demand verification of the debt. See the FTC’s consumer information on debt collection for steps: https://www.consumer.ftc.gov/articles/debt-collection.

6. Compare the creditor’s claim to probate filings and notices

Claims against estates in Rhode Island are governed by the probate statutes. Review the probate file to see whether the creditor filed a formal claim and whether the estate gave required notice to creditors. See Rhode Island’s probate claim statutes (Chapter 33‑15): R.I. Gen. Laws, Chapter 33-15. If a creditor did not present a timely claim according to the probate process, the court may disallow it.

7. Send a written dispute if amounts look incorrect

If you find errors, send a written dispute to the creditor (or collector) describing the errors, requesting corrected accounting, and enclosing supporting documents. Send the dispute by certified mail, return receipt requested, and keep copies. If the collector is a third‑party, include a request for verification under the FDCPA framework referenced above.

8. Ask the probate court to resolve the claim if the creditor insists

If the creditor files a formal claim and you believe the claim is incorrect or unenforceable, file an objection or answer in the probate proceeding and ask the court to set a hearing. Rhode Island probate judges decide whether to allow, disallow, or adjust claims based on the evidence. See the probate court’s guidance: Rhode Island Probate Court information.

9. Consider negotiating or settling the claim

Often it is faster and cheaper to negotiate with the creditor to reduce accrued fees or interest. Any settlement should be reduced to writing and approved by the executor (and, if required, the probate court).

10. Consult an attorney for complex disputes

If the claim is large, involves secured debt (mortgage), or raises legal defenses (statute of limitations, contractual breach, improper assignment), consult an attorney familiar with Rhode Island probate and creditor‑claim procedures. An attorney can file appropriate objections, represent the estate at hearings, and advise whether the executor’s actions might create personal liability.

Key Rhode Island legal points to remember

• Rhode Island statutes on presentation and allowance of claims guide how creditors must present claims and how courts handle objections. See R.I. Gen. Laws Chapter 33‑15: https://www.rilegislature.gov/Statutes/TITLE33/33-15/INDEX.html.
• Executors must protect estate assets and should not pay disputed claims without documentation or court approval when appropriate.
• Federal debt collection rules may give extra rights when a third‑party collector provides the payoff quote. See FTC guidance: https://www.consumer.ftc.gov/articles/debt-collection.

Disclaimer: This article explains general Rhode Island legal concepts and is not legal advice. It does not create an attorney‑client relationship. For specific legal advice about an estate dispute or creditor claim, consult a licensed Rhode Island attorney.

Helpful Hints

• Always request a written, itemized payoff quote with a clear payoff date.
• Send all disputes in writing and use certified mail to create a record.
• Keep a complete copy of the estate’s bank statements and cancelled checks to verify payments.
• If a creditor claims secured status (mortgage, lien), ask for recorded documents showing the lien.
• Do not rely on oral statements from collectors; insist on documentation before payment.
• If a claim is filed in probate, read the probate court’s notice closely to know the deadline and procedure to object.
• Consider small‑claims or negotiated settlement for modest disputed amounts to avoid legal fees.
• If a creditor sues the estate or seeks foreclosure, contact an attorney promptly; litigation deadlines can be short.