Card holder died and Barclaycard still want paying :(

Bossyboots

Dr.Shoe wrote:

Isn't it the case that secured loans (mortgages) take precedance over unsecured ones (credit cards)?

Um yes, see my post immediately above yours.

MarkyMarkD

TBC wrote:

What it was was that they told him that if she had to stop working due to the arthritis then they wouldn't pay out. He therefore decided it was pointless.....

But it WOULD have paid out if either of them had died. So it wouldn't have been pointless - just a rather expensive way of buying life insurance.

TBC wrote:

So what insurance did he take out with Capital One that made it so they just closed the card accounts once informed?

Card Protection Plan.

TBC wrote:

Don't worry too much about that, hindsight is a wonderfull thing but at his age you don't really expect to use life insurance...... Thanks for your input so far

If you don't expect to use life insurance at his age (and I presume he was in his 50s) then I'm not sure when you do expect to use it ... the cost of life insurance becomes fairly prohibitive once you are at the age where most people die (70s-80s) and the cost/benefit equation probably only makes sense whilst younger, but regrettably in the 50s it is not that unusual for men to die.

TBC

But it WOULD have paid out if either of them had died. So it wouldn't have been pointless - just a rather expensive way of buying life insurance.

He knew that but to be fair I don't think he planned on dying in such a short space of time and therefore decided if anything happened he could deal with it before it became a problem... I couldn't say, we didn't know he didn't have a policy before.....

With regards to the card protection plan is it just some of them that cover more than just that card, I only ask as my old credit card with Natwest had a protection plan but that also covered my Marbles card.....

He was 56 (by a couple of weeks) so yeh mid fifties, easy to say he should have had it and there is a moral here but not a lot we can do about that now weve just got to help the mother inlaw out to try and make the finances work.

I'm not sure with the responses on here but it seems most people are saying pay off the mortage (as much as poss) and then tackle the cards?
I would assume that if indead they have a claim on the life insurance tha it would be better to pay them off and the pay the remainder to the mortgage on the principle that the mortgage interest rate is lower? I'm going to give the CAB a call later on this as I'm not sure what should be done and I'm going to try and find out about any pension scheme to see if there was one.

Bossyboots

TBC wrote:

He knew that but to be fair I don't think he planned on dying in such a short space of time and therefore decided if anything happened he could deal with it before it became a problem... I couldn't say, we didn't know he didn't have a policy before.....

With regards to the card protection plan is it just some of them that cover more than just that card, I only ask as my old credit card with Natwest had a protection plan but that also covered my Marbles card.....

He was 56 (by a couple of weeks) so yeh mid fifties, easy to say he should have had it and there is a moral here but not a lot we can do about that now weve just got to help the mother inlaw out to try and make the finances work.

I'm not sure with the responses on here but it seems most people are saying pay off the mortage (as much as poss) and then tackle the cards?
I would assume that if indead they have a claim on the life insurance tha it would be better to pay them off and the pay the remainder to the mortgage on the principle that the mortgage interest rate is lower? I'm going to give the CAB a call later on this as I'm not sure what should be done and I'm going to try and find out about any pension scheme to see if there was one.

Please check the website I have linked to. It actually says on there that the mortgage is the first debt that has to be discharged from the estate before anyone else is paid. The best the credit card company can do is go after his share of the house either by forcing a sale through the courts or attaching a restriction to the property so that the debt is paid whenever the house is sold.

TBC

It most certainly does but I don't like the idea of the CC company trying to put an attachment on the property as to be honest I wouldn't put it past them

What that website doesn't say is if it must be Mortgage then unsecured debt bearing in mind one of the names on the mortgage is still here and available to continue paying the mortgage but the name on the credit card is not....
I think that website is showing if say in my example, the mother inlaw was deceased also and nobody was left to pay any of it....