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Interest charging if client deceased?

Can a Care Company charge interest on aged debtors if the client has deceased?

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Hi, 

I have tried finding an answer for this all over the web but there is nothing out there specifying when you shouldn't charge interest to an aged debtor. 

Working for a Care company we see a high volume of our debts getting into probate. Normally I back off with credit control when this happens but have recently been asked by my manager to start charging interest when the client dies, which I am a bit unconfortable with.

 Can we continue/start to charge interest even though the client has died and the debt is stuck on a bureaucratic process that takes time? 

Thanks in advance

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By paul.benny
06th May 2020 16:56

Agree with Patch. There are regulations allowing interest to be charged on late payment by businesses but nothing that would allow you to charge interest to the estates.

I think it would be reasonable to have a term in your contracts allowing you to charge interest on fees unpaid for more than, say 6 months after death. I'd get legal advice before actually doing that - and bear in mind it may not be easy to change contractual terms for existing residents.

Ultimately this is not your responsibility and not your decision. Your manager should be the one taking advice.

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