Detailed Answer

This FAQ explains how to verify or formally challenge a creditor’s payoff quote for a debt of a deceased person under West Virginia law. It assumes you are the personal representative (executor/administrator) or an interested heir with responsibility for or exposure to estate debts. This is general information only and not legal advice.

Quick overview

When a creditor sends a payoff quote after someone dies, you should not rely on the quote alone. A valid payoff depends on the account terms, whether the creditor properly proved the debt, whether the debt is secured, and whether the claim was timely presented in probate. You can verify the amount by demanding documentation and, if necessary, contest the claim in the probate court that is administering the estate.

Key West Virginia legal references

• West Virginia Code, Chapter 44 (Decedents’ Estates): https://code.wvlegislature.gov/44/
• West Virginia Attorney General — Consumer Protection (for billing or collection disputes): https://ago.wv.gov/consumer-protection

Step-by-step: How to verify a creditor’s payoff quote

1. Get the quote in writing and check the date.

   Ask the creditor for a written itemized payoff quote that shows the payoff date, the principal balance, interest to that date, itemized fees or charges, payments applied, and any escrow amounts. A payoff quote is accurate only through its stated payoff date because interest and fees can keep accruing.

2. Obtain the account contract and recent statements.

   Request a copy of the original contract, promissory note, security instrument (mortgage or lien), and the account statements covering the last 12 months. These documents show how interest and fees are calculated and whether the creditor properly accelerated the balance on death.

3. Confirm whether the debt is secured or unsecured.

   Secured debts (home mortgage, car lien) attach to property. The creditor’s remedy will typically be enforcement of the security interest rather than a personal claim against heirs. If secured, verify the recorded lien through county records and confirm payoff instructions for release of the lien.

4. Check whether the creditor filed or presented a claim in probate.

   In West Virginia probate, creditors generally must make a claim against the estate to be paid from estate assets. Check court files or ask the personal representative whether the creditor has filed a formal claim. If the creditor has not timely filed a claim, the estate may have defenses. See West Virginia Code, Chapter 44: https://code.wvlegislature.gov/44/.

5. Compare the creditor’s figures to estate records.

   Match the payoff breakdown against the account ledger and estate accounting records. Check that recent payments by the decedent or estate are applied and that no duplicate charges or late fees after probate began are included without explanation.

6. Ask for proof of assignment or transfer if a collector provided the quote.

   If a collection agency or purchaser provided the payoff quote, demand documentary proof the agency holds the debt (an assignment, bill of sale, or chain of title). Collection agencies frequently purchase debts; you have the right to see proof before you pay.

7. Confirm the quoted payoff payoff handles post-death charges correctly.

   Some accounts add default interest, late fees, attorney fees, or collection charges after notice of death. Verify whether the account agreement permits those charges and whether they were actually incurred. If the creditor inflated charges, you may be able to dispute them.

8. Check statute of limitations and prior settlements.

   Some debts may be unenforceable because the statute of limitations has expired or because the creditor previously settled or released the debt. If you suspect these issues, get an attorney to review them before paying.

How to formally contest a payoff quote or creditor claim in probate court

1. File a written objection or denial of the claim with the probate clerk.

   If the creditor presents a formal claim and you disagree with the amount, file a written objection with the probate court that is handling the estate. Include the reasons for the objection and attach supporting documents. Follow local probate court rules on timing and form.

2. Request a hearing.

   After you object, request a court hearing to resolve the dispute. The court can require the creditor to prove the debt, show the calculation, and produce account records.

3. Use discovery to obtain proof.

   In contested matters, the court may allow subpoenas or written discovery so you can obtain the original contract, payment history, assignment documents, and correspondence. Use discovery to test the creditor’s accounting method.

4. Consider summary resolution or settlement.

   Often these disputes settle with reduced payoffs after you show billing errors or weak chain-of-title. Mediation or negotiation can save time and expense.

5. Appeal or seek other remedies if court rules incorrectly.

   If the probate court decides against you, West Virginia law provides appeal rights under certain circumstances. Consult counsel promptly about deadlines and the appeals process.

Practical documents to request from the creditor

• Written, itemized payoff quote with the payoff date
• Original loan agreement or promissory note
• Security instrument (mortgage, deed of trust, UCC-1 financing statement)
• Account statements and payment ledger
• Assignment or bill of sale if the debt was sold
• Proof of charges (late fees, attorney fees) and calculation method

When to hire an attorney

Get an attorney if the disputed amount is significant relative to estate assets, if the creditor refuses to produce documentation, if the creditor claims a secured interest in estate property, or if the probate court process becomes contested. An attorney can file pleadings, conduct discovery, and negotiate or litigate on behalf of the estate.

Helpful Hints

• Always get a written payoff quote. Oral quotes change and are hard to enforce.
• Preserve all emails, letters, and account statements in case you need to show them to the probate court.
• Never pay a payoff to an unknown party without proof of assignment; ask for wiring instructions in writing and confirm by phone using a number you obtain independently.
• Time matters. Payoff quotes have expiration dates. If you need time to verify, ask the creditor for an extension in writing.
• Be cautious about paying from personal funds. If you pay a creditor personally, you may not be able to recover the payment from the estate unless the payment was authorized.
• Check county land records online for recorded liens before making payoff payments on real property.
• If a collection practice seems abusive or unlawful, contact West Virginia Attorney General — Consumer Protection: https://ago.wv.gov/consumer-protection.

Closing note and disclaimer

This article explains common steps under West Virginia probate practice and points you to official resources. It is educational only and not legal advice. For advice about a specific estate, claim, or local probate procedure, consult a licensed West Virginia attorney.