Detailed Answer
When an elderly person’s estate faces a claim from a creditor who used predatory lending tactics, the executor can challenge that claim by following Missouri’s probate rules and consumer protection laws. Predatory lending may involve unaffordable loan terms, hidden fees, or excessive interest rates that violate Missouri’s usury statutes (RSMo § 408.020). The executor’s first task is to review the claim notice and determine whether it was timely filed under the probate notice requirements (RSMo § 473.839), which generally gives creditors 30 days after notice to present their claims.
Next, the executor should gather all relevant loan documents, correspondence, payment histories, and any evidence of the decedent’s age or diminished capacity at the time the loan was made. Look for interest rates above Missouri’s legal maximum, undisclosed fees, or misleading disclosures. If the terms appear unconscionable or in violation of the Missouri Uniform Consumer Credit Code, the executor can file a written objection—often called a “Contest of Creditor’s Claim”—with the probate court and request a hearing to present evidence.
If the court finds that the creditor engaged in predatory practices—such as charging usurious interest above 10% per annum or failing to disclose key loan terms—the claim may be disallowed in full or reduced to the lawful amount (RSMo § 408.120). In addition, the executor may consider pursuing a separate action under the Missouri Merchandising Practices Act for deceptive lending practices to recover damages or statutory penalties.
Throughout this process, the executor must act in the estate’s best interest, adhere to all procedural deadlines, and pay any valid claims in the proper order of priority. Disallowing illegitimate or predatory creditor claims helps preserve the estate’s assets for rightful beneficiaries.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance.
Helpful Hints
- Track all notices: note the date you received the creditor’s claim and confirm filing deadlines under RSMo § 473.839.
- Document the decedent’s capacity: preserve medical records or affidavits showing the elderly decedent’s vulnerability at loan origination.
- Compare loan terms: verify interest rates and fees against Missouri’s usury limit under RSMo § 408.020.
- File objections in writing: follow local probate court rules for contesting creditor claims and request a formal hearing.
- Explore consumer protection remedies: the Missouri Merchandising Practices Act may offer additional relief for deceptive or unfair lending.