Detailed Answer — How to Verify and Contest a Payoff Quote

When a creditor provides a payoff quote for a debt of a deceased person’s estate, you should treat that quote as a starting point — not the final word. The administrator, executor, or interested heir should verify the quoted amount and, if needed, contest it through the probate process or negotiation. Below are step-by-step actions to verify the payoff quote, documentation to demand, common errors to watch for, and procedures to challenge inaccurate or inflated payoff amounts under Texas probate practice.

1. Confirm the creditor’s identity and authority

• Ask the creditor for written proof that they have authority to collect: account number, company name, mailing address, and contact information for the person who issued the quote.
• If a third-party debt collector provided the quote, request documentation showing that the collector is authorized to collect on behalf of the original creditor (assignment or servicing agreement).

2. Request an itemized written payoff statement

• Demand a detailed payoff statement in writing that lists the principal balance, interest, daily interest rate (if applicable), accrued late fees, administrative fees, attorney fees (if claimed), escrow advances, and the date through which the payoff is calculated.
• Require the statement to include the exact date the payoff figure is valid through; many payoff quotes expire quickly.

3. Obtain the account and loan documents

• Request copies of the original contract, promissory note, mortgage or security instrument, any modifications, payment history, and proof of the last payments posted.
• For secured debts (e.g., mortgages or car loans), request payoff quotes that clearly identify any subordinate liens or title issues that might affect sale or disposition of estate property.

4. Reconcile the creditor’s figures

• Compare the creditor’s itemized payoff to the estate’s accounting, bank statements, and any records the decedent left. Recompute interest using the contract rate and last payment date.
• Watch for duplicate fees, long-terminated charges, unauthorized attorney fees, or interest computed on accelerated balances that may be incorrect after death.

5. Use Texas probate rules on presenting and contesting claims

In Texas probate, creditors generally present claims against the estate to the personal representative (executor or administrator) and may file claims in the probate court if necessary. The personal representative reviews and may either allow, reject, or negotiate claims. If you dispute a creditor’s claim (including the claimed amount), you can object to the claim in the probate proceeding and ask the court to decide the correct amount or disallow the claim.

See the Texas Estates Code for rules about presentation, allowance, and disallowance of claims: consult the Texas statutes online for the Estates Code provisions about claim presentation and creditor procedures at the Texas Legislature website: https://statutes.capitol.texas.gov/ (search for the Estates Code sections on claims and probate). For general guidance on paying bills and creditor claims after a death, TexasLawHelp has helpful information: https://texaslawhelp.org/article/paying-bills-and-debts-after-someones-death

6. Send a written dispute and preserve records

• If you find errors, send a written dispute to the creditor and any collector. State which items you contest and attach your supporting records. Send by certified mail with return receipt and keep copies.
• Preserve all communications, payoff quotes, receipts, and mail. Courts and future negotiations rely on this paper trail.

7. Negotiate or litigate through probate

• Small errors can often be resolved by direct negotiation with the creditor or their attorney. The personal representative can negotiate a reduced payoff or obtain a release for a negotiated amount.
• If the creditor files a claim in probate or the personal representative allows a contested claim, interested persons (heirs, beneficiaries) can file an objection in the probate court asking the judge to resolve the dispute. The court may order documentation, hearing, and ultimately allow, reduce, or disallow the claim.

8. When to consider hiring a probate attorney

Get an attorney if the disputed amount is significant, if the creditor sues, if there are complicated secured assets (real property, multiple liens), or if the personal representative is uncooperative. An attorney can file objections, present evidence, and protect beneficiaries’ interests in probate court.

Key Texas statutory resources (where to look)

• Texas Estates Code — general probate and creditor procedures: start at the Texas statutes site: https://statutes.capitol.texas.gov/ and search the Estates Code (ES) chapters on presentation and allowance of claims.
• TexasLawHelp — practical materials about paying bills and creditor claims after someone dies: https://texaslawhelp.org/article/paying-bills-and-debts-after-someones-death

Important: the exact deadlines and procedures can vary depending on whether the estate is an independent administration, dependent administration, or whether the creditor has already filed a lawsuit. Check the applicable sections of the Texas Estates Code and consult a probate attorney for deadlines and court filings specific to your case.

Helpful Hints

• Always get payoff quotes in writing and confirm the exact “valid-through” date and time.
• Ask the creditor to detail interest calculation method and include a per-day interest rate so you can verify calculations.
• Check whether the creditor filed a claim in probate. If they did, the court file will show the claim amount and supporting documents.
• For secured debts, request a payoff that separately lists principal and each category of charge (interest, fees, escrow advances). That simplifies title transfer or sale of estate property.
• Keep all communications and send any dispute via certified mail. Proof of dispute and receipt matters in court and in negotiations.
• If the executor or administrator refuses to challenge a questionable claim, beneficiaries may be able to petition the probate court to act or to remove the personal representative in extreme cases.
• If you suspect a collector has no right to collect (no assignment or servicing agreement), demand proof; if they cannot prove it, you can ask the court to disallow the claim.