Detailed Answer

When an elderly person dies, their appointed executor must handle all valid debts and claims against the estate. Washington law lets an executor dispute a creditor’s claim if it stems from predatory lending practices. Below are the key steps and legal safeguards.

1. Understand the Probate Timeline

Under Washington’s probate code, creditors must file claims within set deadlines. In an independent administration, known creditors have six months from the decedent’s date of death to file. Unknown creditors get at least four months from the first publication of the notice to creditors. See RCW 11.40.020.

2. Review the Creditor’s Claim

Obtain a copy of the loan documents, disclosures and billing statements. Look for:

• Excessive interest rates beyond state caps.
• Hidden fees or undisclosed penalties.
• Deceptive language or failure to explain loan terms clearly.

3. Identify Predatory Lending Violations

Washington’s Consumer Protection Act prohibits unfair or deceptive acts in trade or commerce. A loan that misleads an elderly borrower on costs or terms may violate RCW 19.86.020. You may also find abuses under the state’s elder abuse statute (RCW 74.34), though that often applies to caregivers.

4. File a Formal Objection

To dispute the claim, file a written objection with the probate court before the claim deadline expires. Cite reasons and attach supporting evidence. Under RCW 11.28.120, the court must disallow any claim that lacks legal validity.

5. Attend the Hearing

The court schedules a hearing to review objections. Present your evidence of predatory terms and reference the Consumer Protection Act. The creditor can defend the claim. After both sides present, the judge rules to allow, modify or disallow the claim.

6. Seek Further Relief if Needed

If the court allows the claim despite your objection, consider filing a separate action under the Consumer Protection Act to recover damages on behalf of the estate. This step requires a petition in superior court.

Helpful Hints

• Keep careful notes on all communications with the creditor.
• Consult probate court handbooks for local procedure.
• Gather expert testimony on prevailing market rates for similar loans.
• Review sample objection forms available at the county clerk’s office.
• Document all loan disclosures and signed agreements chronologically.

Disclaimer: This article does not provide legal advice. It offers general information under Washington law. Consult a licensed attorney for guidance tailored to your situation.