Detailed Answer
When a person dies in Montana, the executor (personal representative) must review and act on any creditor claims according to state law. Under Montana Code Annotated (MCA) 72-3-114 (https://leg.mt.gov/bills/mca/title_0720/chapter_0030/part_0010/section_0114/), creditors must present their claims within four months after letters are first issued. To challenge a creditor claim on predatory lending grounds, follow these steps:
1. Confirm the Claim and Deadline
Review the creditor’s claim form, the amount demanded, and the date letters testamentary were issued. If the creditor filed after the four-month deadline or failed to follow probate rules, you may object immediately under MCA 72-3-114.
2. Identify Predatory or Unconscionable Terms
Analyze the loan agreement for interest rates or fees that far exceed market norms or hidden charges. Montana’s Consumer Protection Act prohibits unconscionable acts or practices, including predatory lending, under MCA 30-14-103 (https://leg.mt.gov/bills/mca/title_0300/chapter_0140/part_0010/section_0030/).
3. Gather Evidence of Elder Financial Exploitation
Collect the decedent’s financial records, loan application, and correspondence. Look for misrepresentations or pressure tactics that may constitute fraud in the inducement.
4. File an Objection in Probate Court
Within the period allowed for creditors to respond to notice (typically 60 days after publication), file a written objection with the county probate court explaining why the claim is invalid or unenforceable. Cite the unconscionability or predatory lending provisions under MCA 30-14-103.
5. Move for Summary Determination or Trial
If the creditor refuses to withdraw the claim, request a hearing. You can move for summary determination if the facts are undisputed or prepare to present evidence at trial. The creditor bears the burden to prove the validity and enforceability of the claim under Montana case law.
Helpful Hints
- Act quickly. Strict deadlines in probate may bar your objections if missed.
- Keep organized files of all loan documents and communications.
- Consult an attorney experienced in Montana probate and consumer protection.
- Consider mediation to resolve disputes without a full trial.
- Check for federal laws such as the Truth in Lending Act if the loan qualifies as consumer credit.
Disclaimer: This article provides general information on Montana law and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.