Barclaycard debt and death

[Deleted User]

Had a letter today from Barclaycard regarding my late mother's debt with them. It goes on to say that they can use money in her current and savings accounts with Barclays to offset this debt. Can they do this? Her estate is busy going through Probate. It also says that they will start charging interest in 3 months if the rest of the debt is not settled by then. Can they do this aswell?

Been trying to get through to them on the phone all morning without any success. I feel like walking into the branch and making a scene right now! :mad:

I will give the letter to the solicitor who is dealing with the estate tomorrow when I go and see her.

mags24

Probate rules are very clear. It is up to the executor of the will to assess all debts and assets outstanding at the time of death and to allocate the assets to pay off any outstanding debts.

From what I remember when i was executor to my mum's estate, first claim on the assets is an allowance to pay for the funeral costs. They certainly cannot claim interest on the debt - against whom? The person with whom they had a contract is dead. All assets and debts are frozen at that point.

It sounds to me like you have had a threat from someone at a branch who isn't familiar with probate rules, and doesn't work for the right department. If you have appointed the solicitor as executor, then leave it to them (although if you haven't, I wouldn't suggest involving a third party - they have no incentive to sort it out quickly & keep an eye on what's going on). Most banks have a specific department to deal with deaths and once you contact them, you should get a more sympathetic and legally correct service.

sicker

As far as I am aware your Mother's account is frozen from the date of death and Barclays would have to claim her estate. As you say best thing do do is hand letter to the solicitor dealing with her estate.

King_Of_Fools

I think the situation is slightly complicated by the fact that the deceased also has current and savings accounts with Barclays. If the account holder was still alive, Barclays would have every right to claim money in this fashion to pay off a Barclaycard credit card debt, if they chose to do so, as it is written in the contract.

I am not sure what happens to this contract when the account holder is no longer alive, however.

---lee---

King_Of_Fools wrote: »

I think the situation is slightly complicated by the fact that the deceased also has current and savings accounts with Barclays. If the account holder was still alive, Barclays would have every right to claim money in this fashion to pay off a Barclaycard credit card debt, if they chose to do so, as it is written in the contract.

I am not sure what happens to this contract when the account holder is no longer alive, however.

That's what I thought. I wouldn't be surprised if they have terms in the contract which say they will take the money from other accounts in the event of your death. We need a legal eagle to clarify…

jonesMUFCforever

Legally as has been confirmed here the first call is the funeral cost then HM Customs/Inland revenue , any secured creditors and then if there is anything left over the unsecured creditors (Barclays in this case).
I am not a lawyer but a bank surely cannot have a right of set off over a deceased customer.
Yes the bank has a right to claim on the estate and if there is sufficent cash there to pay their card division off - great but if not as an unsecured creditor they would have to write off some of the sum pro rata.

goldcoin_2

I have read these posts with interest. I asked a question along lines similar to this and received answers. But the replies to this question have helped me furthered my understanding of the situation.

Many thanks

CGG

Eight years ago I worked in Barclays Financial Services dept, dealing with Deceased's accounts.
This question cropped up many times.
Barclays do, or at least did when I worked there, take any funds that are in a Deceased's account to pay outstanding debts on a Barclaycard account.
I recall there was something in the small print in the Barclaycard Agreement that explained they would do this, if the Barclaycard holder died owing anything to them.

[Deleted User]

CGG wrote: »

Eight years ago I worked in Barclays Financial Services dept, dealing with Deceased's accounts.
This question cropped up many times.
Barclays do, or at least did when I worked there, take any funds that are in a Deceased's account to pay outstanding debts on a Barclaycard account.
I recall there was something in the small print in the Barclaycard Agreement that explained they would do this, if the Barclaycard holder died owing anything to them.

What about this interest they say they are going to start charging in 3 months time if the rest of the balance is not cleared? To whom are they going to charge it to? It's not by debt so I won't be paying them any interest that's for sure.

Thanks all for the helpful replies.