Detailed Answer
Under New Mexico law, an executor (Personal Representative) must review and respond to creditor claims through the probate process. Creditors present their claims under the Uniform Probate Code codified at Chapter 45, Article 3 of the New Mexico Statutes (§45-3-801 et seq.).
1. Timeframe to File and Respond
Creditors have four months from the first publication of notice to present claims (NMSA 1978, §45-3-801). After service of a claim, the executor must admit or reject it in writing within 30 days. Failure to respond constitutes an allowance of the claim.
2. Recognizing Predatory Lending Violations
Predatory lending practices may violate the New Mexico Unfair Practices Act (NMSA 1978, §57-12-4) or the Uniform Consumer Credit Code (NMSA 1978, §56-9-2). Examples include:
- Hidden or excessive fees.
- Interest rates above statutory caps.
- Failure to provide required disclosures.
- Coercive or deceptive sales tactics targeting elderly borrowers.
3. Step-by-Step Challenge Process
- Gather Documentation: Collect the loan agreement, promotional materials and all communications with the lender.
- Identify Violations: Compare the loan terms against statutory requirements for disclosures, maximum rates and fee caps.
- Reject the Claim: File a written rejection within 30 days after the creditor’s service date, citing specific statutory sections.
- Petition for Determination: If the creditor objects, file a petition for a hearing under NMSA 1978, §45-3-811. Present evidence of predatory practices at the hearing.
- Consider a Separate Civil Action: The executor may sue the lender under the Unfair Practices Act’s civil remedies (NMSA 1978, §57-12-10) for rescission, damages or restitution.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Track all probate deadlines in writing to avoid default.
- Preserve loan documents and all creditor communications in the estate files.
- Document any signs of elder financial abuse and report them to Adult Protective Services if needed.
- Review local district court probate rules for filing and hearing procedures.
- Explore mediation to resolve contested claims more quickly and cost-effectively.