Detailed Answer

When an elderly loved one passes away in Tennessee, an executor must protect the estate from illegitimate creditor claims. If a creditor alleges a debt based on a predatory loan made to your decedent, you can challenge the claim on statutory and equitable grounds. Below is a step-by-step roadmap under Tennessee law.

1. Identify and Review the Creditor’s Claim

• Obtain the claimant’s petition or proof of claim filed in probate.
• Examine loan documents for high interest rates, hidden fees, or unfair terms targeting the elderly.
• Check notice requirements: Tennessee law requires publication and mailed notice to known creditors. See Tenn. Code Ann. §30-2-306 (90-day deadline) and §30-2-311 (objecting to claims).

2. Determine Grounds for a Predatory Lending Challenge

• Unconscionability: If terms shock the conscience, you may disaffirm the contract. See Tenn. Code Ann. §47-1-2-302.
• Violation of the Tennessee Consumer Protection Act (TCPA): The TCPA prohibits abusive, deceptive, or unconscionable acts in connection with consumer transactions. Targeting an elderly consumer may qualify as an unfair practice. See Tenn. Code Ann. §47-18-104(a)(27) and §47-18-109 for remedies.
• Lack of Capacity: An elderly decedent may have lacked cognitive capacity, rendering the loan voidable for fraud or undue influence.

3. File a Timely Objection in Probate Court

• Under Tenn. Code Ann. §30-2-306, creditors must file claims within 90 days after the first published notice. Late claims become barred.
• Prepare a written objection (“response contesting the claim”) stating specific grounds: predatory terms, statutory violations, or incapacity. Cite Tenn. Code Ann. §30-2-311.
• Serve the objection on the claimant and file with the probate clerk before the objection deadline.
• Attend a hearing if the court sets one to resolve competing claims.

4. Pursue Additional Relief Under the TCPA and Common Law

• Separate Civil Action: If the claim survives the probate objection, consider a separate suit in chancery or circuit court for rescission of the loan under the TCPA (Tenn. Code Ann. §47-18-109) or for equitable relief such as restitution.
• Statutory Damages: The TCPA allows up to treble actual damages plus attorneys’ fees for unfair practices.
• Document Preservation: Keep all correspondence, medical records, and affidavits showing the decedent’s vulnerability.

Key Statute Links:
30-2-306 notice to creditors: Tenn. Code Ann. §30-2-306
30-2-311 objection to claim: Tenn. Code Ann. §30-2-311
47-1-2-302 unconscionable contracts: Tenn. Code Ann. §47-1-2-302
47-18-104 TCPA prohibited acts: Tenn. Code Ann. §47-18-104
47-18-109 TCPA remedies: Tenn. Code Ann. §47-18-109

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney before taking any action.

Helpful Hints

• Track all probate deadlines in a calendar to avoid waiving objections.
• Gather evidence of the decedent’s mental and physical condition near loan origination.
• Document communications with the creditor to show potential deception or harassment.
• Consider mediation or settlement before litigation to minimize estate costs.
• Consult a probate attorney experienced in consumer protection claims for strategic guidance.