What Is the Ford Credit Peace of Mind Program?
When someone with a Ford Credit loan or lease passes away, one of the first questions the family faces is what happens to the vehicle payments. Ford Credit offers a program called Peace of Mind that may forgive the remaining balance on a loan or the remaining payments on a lease when the account holder dies.
Peace of Mind is not a separate insurance policy and does not cost anything extra. It is a contractual benefit included in certain eligible Ford Credit retail installment contracts and lease agreements. However, it is not automatic -- the estate or a family member must contact Ford Credit and formally request the benefit. If no one files a claim, Ford Credit will continue to expect regular payments on the account.
This program is one of the most generous death-of-borrower protections offered by any auto lender in the United States, but it does not apply to every Ford Credit account. Understanding whether the deceased's contract includes this coverage -- and how to file a claim -- can save the estate thousands of dollars.
Who Qualifies for Peace of Mind Coverage
Not every Ford Credit account includes Peace of Mind. Here are the general eligibility requirements:
- Account standing: The account must be current on payments at the time of the account holder's death. If the account was past due, Ford Credit may still work with the estate, but full benefits may not apply.
- Contract type: The program applies to eligible retail installment contracts (loans) and lease agreements originated through Ford Credit. Commercial and fleet accounts are generally excluded.
- Account holder: The deceased must be the primary account holder on the contract. If the deceased was a cosigner but not the primary borrower, Peace of Mind coverage typically does not apply.
- Contract terms: Some Ford Credit contracts include Peace of Mind and others do not. The only way to know for certain is to review the original contract or call Ford Credit directly.
If you are unsure whether the deceased's account qualifies, call Ford Credit's estate services line at 1-800-727-7000. They can look up the account and confirm coverage.
What the Program Covers
The specific benefits depend on whether the account is a loan or a lease.
Retail Installment Contracts (Loans)
If the deceased had a Ford Credit auto loan with Peace of Mind coverage, the remaining loan balance may be forgiven entirely. Once the claim is approved, Ford Credit releases the lien and the title is transferred to the estate. The estate can then transfer the vehicle title to an heir, sell it, or otherwise dispose of it without the burden of the remaining debt.
Lease Agreements
For leases with Peace of Mind coverage, the benefits can be even more significant. Remaining lease payments may be forgiven, the disposition fee (typically $300-$600) may be waived, and excess mileage and wear-and-tear charges may be waived if the vehicle is returned promptly. The estate coordinates with a local Ford dealer to return the leased vehicle. For more on handling a leased vehicle when someone dies, see our dedicated guide.
Important Caveats
Coverage details can vary between contracts. Some older contracts or contracts originated through certain dealerships may have different terms. Always review the original financing or lease agreement, and confirm the specific benefits with Ford Credit before assuming full forgiveness.
How to File a Peace of Mind Claim
Filing a claim is straightforward, but it does require gathering specific documents and coordinating with Ford Credit. Here is the step-by-step process:
- Call Ford Credit estate services at 1-800-727-7000. Let them know the account holder has passed away. Have the account number ready if possible -- you can find it on the monthly statement or the original contract.
- Confirm Peace of Mind coverage. The representative will look up the account and tell you whether the contract includes Peace of Mind. If it does, they will walk you through the next steps.
- Gather required documents. Ford Credit will tell you exactly what they need, but plan on providing:
- A certified copy of the death certificate (not a photocopy)
- Letters testamentary or letters of administration from the probate court
- A valid photo ID of the executor or administrator
- Vehicle information including the VIN and current mileage
- Submit your documents. Ford Credit will provide instructions for where to send or upload the paperwork. Keep copies of everything you submit.
- Wait for processing. Ford Credit typically processes Peace of Mind claims within 2-4 weeks after receiving all required documents. During this period, confirm with them that the estate does not need to continue making payments.
- For leased vehicles, coordinate the return. If the deceased had a lease, you will need to arrange to return the vehicle to a Ford dealer. Ford Credit can help you identify a nearby dealership and schedule the drop-off.
What If the Contract Does Not Include Peace of Mind
If Ford Credit confirms that the deceased's contract does not include Peace of Mind coverage, the loan or lease becomes a standard obligation of the estate. The debt does not simply disappear. Here are the options:
- Pay off the loan from estate funds. If the estate has sufficient assets, the executor can pay off the remaining balance and transfer the title to an heir or sell the vehicle.
- Refinance in an heir's name. If someone in the family wants to keep the vehicle, they can apply to refinance the loan in their own name. The lender will evaluate the new borrower's creditworthiness.
- Sell the vehicle. The executor can sell the vehicle, pay off the remaining loan balance from the proceeds, and distribute any surplus to the estate.
- Return a leased vehicle. For leases without Peace of Mind, the estate can return the vehicle, but early termination fees, excess mileage charges, and wear-and-tear fees will likely apply.
- Negotiate with Ford Credit. In hardship situations, Ford Credit may offer accommodations such as a payment deferral or modified payoff amount. It does not hurt to ask.
If the vehicle has negative equity (the loan balance exceeds the vehicle's value), the remaining deficiency becomes a debt of the estate. Heirs are generally not personally responsible for the deceased's auto loan unless they cosigned.
How Ford Credit Compares to Other Lenders
Ford Credit's Peace of Mind Program is one of the most comprehensive death-of-borrower protections in the auto industry. Here is how it compares to other major lenders:
- Ford Credit: Peace of Mind may forgive the full remaining balance (loans) or remaining payments and fees (leases) on eligible contracts at no extra cost.
- Mercedes-Benz Financial Services: Offers a similar lease forgiveness program on eligible contracts. Remaining payments and fees may be waived upon the lessee's death.
- GM Financial, Honda Financial Services, Toyota Financial Services: These lenders generally handle death-of-borrower situations on a case-by-case basis. There is no standard forgiveness program, though they may offer payment deferrals or hardship accommodations.
- Third-party lenders (banks, credit unions): Terms vary widely. Most treat the death of the borrower as a standard default event and expect the estate to pay off the balance or return the vehicle.
If the deceased financed through a lender other than Ford Credit, contact that lender's estate services department to understand your options. You can also check the Ford Credit institution guide for additional details on working with Ford Credit during estate settlement.
How SwiftProbate Can Help
Dealing with vehicle loans and leases is just one part of settling an estate. SwiftProbate creates a personalized plan based on the deceased's specific assets, debts, and state laws -- including guidance on auto loans, lease obligations, and title transfers. Instead of calling multiple lenders and searching through paperwork on your own, you get a clear, step-by-step roadmap tailored to your situation.
This article is for informational purposes only and is not legal advice. Consult an attorney for guidance specific to your situation.