How to verify or contest a creditor’s payoff quote for an estate debt in Washington

Quick overview: When a creditor gives a payoff quote for a debt of a deceased person, the personal representative (executor/administrator) and heirs should verify that the amount is accurate before the estate pays. In Washington, creditor claims against an estate are governed by the probate statutes (chapter 11.40 RCW). You can request documentation, compare the quote to estate records, and, if necessary, formally dispute the claim in writing or in probate court. This is general information, not legal advice.

Detailed answer: step-by-step actions to verify and, if necessary, contest a payoff quote

1. Get the payoff quote in writing

   Ask the creditor for a written payoff statement that includes: the account number, the date the payoff is valid through, principal, accrued interest, late fees, collection fees, finance charges, and any offsets or credits. A written statement creates a record you can verify.

2. Request an itemized accounting and supporting documents

   Ask the creditor to provide supporting documents: the loan agreement or contract, the last periodic statement, a ledger showing each charge/payment, and proof of any assignment if a third party now owns the debt. If the debt is secured (e.g., mortgage or car loan), request the recorded lien documents.

3. Compare the creditor’s figures to estate records

   Compare the creditor’s itemization to the decedent’s bank and payment records, the original contract, and any payments the estate already made. Confirm interest rate, last payment date, and whether post-death interest or fees are authorized by the contract or law.

4. Confirm the creditor’s authority to collect

   If a collection agency or buyer of the debt provided the quote, ask for proof of assignment or chain-of-title showing they have legal authority to collect. Without proper documentation, you may have grounds to dispute the claim.

5. Check whether the creditor filed a claim in probate and the probate bar date

   In Washington probate, creditors generally must present their claims against the estate in the manner and within the timeframe required by chapter 11.40 RCW. Review the probate court docket and notices to see whether the creditor filed a formal claim. If the creditor missed the court’s claim deadline, the personal representative may be able to disallow the claim. See RCW chapter 11.40 for the statutory rules: RCW 11.40 (Claims against estate) and the rules on presenting claims at RCW 11.40.020.

6. Send a timely written dispute to the creditor

   If figures differ or documentation is missing, send a written dispute that lists the specific items you challenge and requests verification. Keep copies and use certified mail or another method that provides delivery proof. A detailed written challenge helps preserve the estate’s rights and creates evidence if a court contest becomes necessary.

7. If the creditor filed a claim in probate, file a formal objection with the court

   If the creditor files a claim and you believe it is incorrect or barred, the personal representative (or an interested person) can object to the claim in the probate case. The probate court can allow, disallow, or reduce claims based on the evidence. See the probate claims chapter: RCW 11.40. If you need more than paperwork—for example, discovery or evidentiary hearings—you will typically file a written objection and ask the court for a hearing.

8. Consider mediation or settlement

   If the estate has enough assets but the claim disputes are unclear or costly to litigate, consider negotiating a reduced payoff or mediation. Courts often encourage settlement when it conserves estate assets.

9. Keep careful records and follow court rules

   Retain copies of all communications, itemizations, receipts, and court filings. Follow the probate court’s procedures and timelines when filing objections, because missing deadlines can waive defenses.

10. When to consult an attorney

    If the claim is large, the documentation is complex, or the creditor pursues litigation, consult a Washington probate attorney. An attorney can draft objections, represent the estate at hearings, and handle discovery and settlement negotiations.

Key Washington statutes and resources

• RCW Chapter 11.40 — Claims Against Estate (procedures for presenting, allowing, and disputing claims)
• RCW Chapter 11.36 — Probate of Wills and Estate Administration (general probate procedure)

Helpful hints

• Always demand a written, itemized payoff quote before you pay anything.
• Verify whether interest or post-death fees are permitted by contract or statute.
• Confirm the creditor’s ownership of the debt if a collection agency provided the quote.
• Preserve all communications and send disputes in writing with proof of delivery.
• Check the probate docket for a creditor’s filed claim and the court’s claim deadlines.
• Use the Washington statutes linked above to understand filing and objection procedures under RCW 11.40.
• For complex disputes or large claims, consider hiring a probate attorney early to protect the estate’s assets.
• If you cannot afford an attorney, look for local legal aid or the county law library for free or low-cost guidance.

Disclaimer: This article explains general Washington law and is for educational purposes only. It does not constitute legal advice. For advice tailored to your situation, consult a licensed Washington attorney.