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Detailed answer — how to verify a creditor’s payoff quote and what to do if it looks wrong

1) Understand the legal framework

Creditors may make claims against a decedent’s estate. Utah’s probate statutes and the probate process govern how claims are presented, allowed, or disallowed. For the governing law and deadlines, review Utah Code Title 75 (Estates; Wills; Trusts) and the portion addressing claims against the estate. See Utah Code, Title 75: https://le.utah.gov/xcode/Title75/75.html and the chapter on claims against the estate: https://le.utah.gov/xcode/Title75/Chapter3/75-3.html. Utah courts also publish practical probate information at Utah Courts: https://www.utcourts.gov/howto/probate/.

2) Immediate practical steps to verify a payoff quote

When a creditor provides a payoff quote (for example, for a loan, credit-card balance, auto loan, or mortgage), use the following checklist to confirm accuracy:

• Request a written payoff statement. Ask for a dated, itemized payoff that shows principal, interest to payoff date, per diem interest (daily rate), fees (late, collection, foreclosure, reconveyance), and any escrow or insurance advances.
• Confirm the payoff date and per-diem interest. Payoff figures usually expire quickly because interest accrues daily. Confirm the date the payoff is calculated and the per diem so the estate can calculate any change if payment occurs later.
• Obtain account history and ledger. Ask the creditor to provide a full payment ledger showing payments, credits, charges, escrow advances, and the date of the last payment posted.
• Check contract terms and security. Review the original loan or card agreement (secured vs. unsecured). For secured debts (mortgages, vehicle liens), confirm the lien holder’s recorded lien and that the payoff will produce a release or reconveyance recorded with the county.
• Verify interest rates, fees, and acceleration clauses. Ensure the creditor actually has the contractual right to the fees and interest it lists. Watch for duplicate or unauthorized collection charges.
• Confirm payments already made by the estate or estate representative. Make sure the creditor credited all payments, refunds, insurance proceeds, or other offsets.
• Ask about assignments. If a debt was sold or assigned to a debt collector, request proof of assignment or chain of title to show the person quoting the payoff has legal authority to demand payment.
• Check for third‑party credits. For mortgages, determine whether escrowed property taxes or insurance were paid and whether those amounts are included correctly.

3) Document your verification efforts

Send written requests and keep copies. Use certified mail or email with read receipts when possible. Create a clear paper trail showing you asked for the payoff, the supporting documents you received, and any responses. This record supports a later objection if necessary.

4) How to contest or object if the payoff quote appears incorrect or inflated

If the payoff looks wrong after verification, you can challenge it through these steps:

1. Dispute the account directly in writing. Tell the creditor which line items you dispute and request correction. Provide copies of documents that show payments or offsets.
2. Request an itemized accounting under the loan agreement. Explain in writing that you are the personal representative (or an interested person) and need a full accounting to allow or disallow the claim.
3. When a formal creditor’s claim is filed in probate, file a written objection with the probate court and serve it on the claimant. State the basis for the objection (incorrect balance, invalid fees, statute of limitations, lack of proof of assignment, etc.). Under Utah probate procedures, the court decides whether to allow or disallow contested claims. See Utah Code, Title 75 (estates and claims): https://le.utah.gov/xcode/Title75/Chapter3/75-3.html.
4. Ask the court for interim relief if the dispute will block administration. For example, request authorization to reserve or pay undisputed amounts while holding disputed funds for later resolution.
5. Use discovery tools if the creditor resists. In probate contested‑claim proceedings the court can compel production of account statements, contracts, and assignment documents so you can evaluate the claim.
6. Consider settlement or partial payment with a reservation of rights. Sometimes negotiatiing a reduced payoff or paying the undisputed portion preserves estate value while you litigate the disputed portion.

5) Check statute of limitations and timing rules

Statutes and probate rules set deadlines for presenting claims and for the personal representative’s handling of claims. Claims not presented or claims disallowed under the statutes may be barred. For the precise deadlines and procedures in Utah, review the probate claims chapter of the Utah Code: https://le.utah.gov/xcode/Title75/Chapter3/75-3.html and consult the Utah Courts probate guide: https://www.utcourts.gov/howto/probate/.

6) Special issues to watch for

• Secured creditor vs. unsecured creditor: secured creditors (mortgage, vehicle lien) have priority and remedies like foreclosure; their payoff quotes should include lien release language.
• Debt collectors and assignments: collectors must prove they own the debt and show chain of assignment; without proof, you can challenge their right to a payoff.
• Co‑signed or joint debts: a joint obligor remains personally liable; the estate may not be solely responsible for the entire obligation depending on contract and community property rules.
• Estate liquidity: do not pay large disputed claims if payments would exhaust the estate before debts are resolved—ask the court for instructions.

7) When to get outside help

Consider hiring an attorney when:

• Large sums are in dispute or the estate lacks liquidity;
• The creditor refuses to produce documents or provide a reasonable accounting;
• You expect litigation (objection hearing, motion to disallow) or foreclosure/collection activity; or
• You need guidance about deadline-driven statutory procedures under Utah probate law.

Utah’s probate process can involve strict deadlines and formal filings. If you need help, a probate attorney in Utah can explain filing timelines and represent the estate at hearings.

Helpful hints

• Always get a written payoff that includes the payoff date and per‑diem. Oral quotes often change.
• Compare the creditor’s ledger to the estate’s bank records to confirm all payments are posted.
• Ask for a lien release or reconveyance language in the payoff letter for secured loans before sending funds.
• Keep communication in writing and save receipts and delivery confirmations.
• If a debt collector is involved, request proof they own the debt and the assignment chain.
• Don’t rush to distribute estate assets until allowed claims are resolved or the court has approved distributions.
• Use the Utah Courts probate resources for step‑by‑step forms and local procedures: https://www.utcourts.gov/howto/probate/.