Credit card debit and death

boymallory

Hello all, I need some advice.

My father suddenly passed away before Christmas. After going through all his financial affairs, my mother discovered a credit card (solely taken out in his name) with a bill of £3000.

After explaining to the CC company several times, they are insistent that she pays the outstanding bill.

My father's pension only paid out a lump sum of £600, he had no life assurance. He was named on the joint mortgage, but this was paid off several years ago. He has no will as there was nothing in his estate.

Effectively the only thing he left was a few items and the money from his pension.

As the CC was in his sole name, I have said to the CC company the debt is in HIS name and not with my mother's. But they are saying this is not true. Even if she was forced to pay it, she only has the £600.

Any suggestions/thoughts/comments would be greatly appreciated.

Thanks

Richard

Hominu

You need to provide death certificate to the CC company, they'll then cancel the card to prevent any further transactions (possible fraud, etc)

Since the debt is in his sole name, leave the estate responsible for clearing the outstanding balance. If there is insufficient money in the estate for doing so, the CC company will write off the debt as they are unsecured creditors.

chattychappy

In the absence of a will, there are no executors. But did anyone formally handle his affairs after he died as administrators?

If he joint owned the property with your mother (as "joint tenants", the usual way) then this did not form part of his estate. Technically they could claim off the house, but they must get a court order to do this. Very unlikely in the circumstances.

I would insist they deal with you by letter. Write in reply that your father died and left no assets. Tell them if anyone was appointed administrator and who they are or that administrators were not appointed. If they continue to assert that anyone in your family is personally liable follow their complaints process, warning them you will go to the FOS if necessary. If they wish to pursue the debt and no administrators were appointed, then they must seek to get themselves appointed - a process which will cost them more than they can recover - and handle the estate themselves.

thenudeone

boymallory wrote: »

After explaining to the CC company several times, they are insistent that she pays the outstanding bill.
....
there was nothing in his estate.
...
As the CC was in his sole name, I have said to the CC company the debt is in HIS name and not with my mother's. But they are saying this is not true. Even if she was forced to pay it,

What they're saying is wrong. She can't be forced to pay it. Tell her not to worry about it.

boymallory wrote: »

After explaining to the CC company several times, they are insistent that she pays the outstanding bill.

Some front line call centre staff are woefully ignorant even on the basics of legislation surrounding their own products.

If someone has no assets, then their debt dies with them.

Once you've provided them with a copy of the death certificate they should hopefully stop bothering you.

They are entitled to ask the executor / administrator whether there are any assets to pay their debt but they shouldn't write to your mother asking her to pay. I expect that by the time it gets to the stage where they write a letter, someone will have reviewed it and made sure that didn't happen.

If they do, raise a formal complaint.

sheilaluc

My husband died and had a cc only in his name. I just sent then the death certificate and told them I did not have funds to pay it off. The cc was closed down and no further action was taken.

londonTiger

chattychappy wrote: »

If he joint owned the property with your mother (as "joint tenants", the usual way) then this did not form part of his estate. Technically they could claim off the house, but they must get a court order to do this. Very unlikely in the circumstances.

Sorry to hear about your loss, if your father has left behind any assets like in the situation above. It would be better to just settle. Last thing you want is for the bank to start pursuing funds from the estate and giving your mother grief for a share in the house.

Shelldean

when f-i-l died he had £600 appox outstanding on his credit card, which was in his name alone.
A copy of the death cert, was sent explaining there was no estate ( he had 2 small insurances which were used to pay the funeral) They replied they would write in appox 8 wks asking us to confirm there was nothing. This they did we confirmed there was nothing, and that was the end of the matter.

However f-i-l and m-i-l rented not owned their property, not sure how it might've worked had they owned?

Wywth

boymallory wrote: »

Hello all, I need some advice.

My father suddenly passed away before Christmas. After going through all his financial affairs, my mother discovered a credit card (solely taken out in his name) with a bill of £3000.

After explaining to the CC company several times, they are insistent that she pays the outstanding bill.

My father's pension only paid out a lump sum of £600, he had no life assurance. He was named on the joint mortgage, but this was paid off several years ago. He has no will as there was nothing in his estate.

Effectively the only thing he left was a few items and the money from his pension.

As the CC was in his sole name, I have said to the CC company the debt is in HIS name and not with my mother's. But they are saying this is not true. Even if she was forced to pay it, she only has the £600.

Any suggestions/thoughts/comments would be greatly appreciated.

Thanks

Richard

What happened to his half of the house be bought?

chanz4

technically is he is on the deeds its his estate, so by saying their isnt one isnt true

jonesMUFCforever

If joint tenants then the property goes to the survivor.

antrobus

chattychappy wrote: »

....If he joint owned the property with your mother (as "joint tenants", the usual way) then this did not form part of his estate. Technically they could claim off the house, but they must get a court order to do this. Very unlikely in the circumstances....

No, 'technically' they could claim off the survivor i.e. the mother, in the OP's case. It's in s421a Insolvency Act 1986, and yes, they would need an an insolvency administration order. Whether the CC co would bother for £3,000 I do not know - it might depend on costs and recoverability thereof - but it would be an easy win for the CC co if they did.

londonTiger wrote: »

... Last thing you want is for the bank to start pursuing funds from the estate and giving your mother grief for a share in the house.

I'm inclined to agree with that advice.