Liability for credit card due to bereavement.

jeanmd

I'm asking on behalf of a family friend so...

Her husband has just died suddenly and she has found two credit cards that he took out totaling almost £20k. She had no idea about these credit card and as he was the person that took care of all the bills (older couple) it was a bit of a shock. She has phoned the credit card companies to tell them he has passed away only to be told that when he got the cards he applied for her a card in her name making her responsible.
She insists that she never knew about the cards, has never had one in her possession and of course never used the card.
Does she have to pay the debt?

Unfortunately he's left her in a lot of mess financially after getting secured loans on the house (which is in his name only) without insurance to cover, canceling his life insurance and other things.
She has a decent job and had just reduced to part time due to her age. He always told her she would be well looked after if anything happened to him. I feel so sorry for her as she has no idea about taking care of the household bills and now has all this on top.

bossymoo

Your friend could do with some advice from the CAB really.

It's odd that they say he applied in her name - implies they know she didn't apply.

Also, credit cards cannot be joint accounts - the credit agreement is with him, he may have asked for an additional card in her name but that doesn't make her liable.

Unfortunately a lot of standard call centre operators will not understand this.

So, unless she signed a credit agreement she is not liable. The estate will however be liable for the debt, assuming there is any money left (which sounds questionable).

So really, she needs to know if he left a will, who the executor is (if not her) and take things from there.

if there is no will, then someone needs to apply for letters of administration to wind up his estate according to the laws of intestacy.

She should also contact the DWP - there are bereavement benefits she may be eligible for - which may help in the shorter term. This will depend on his NI contributions - when I was widowed I got a one-off bereavement payment plus I get widowed parents allowance (this is if you have children- not grown up ones), but there was also another that paid out for a year, if WPA wasn't awarded.

Reassure her that it will get sorted out, although it may take time, but not to hand over her hard earned cash without some proper advice first!

molerat

Were the "cards in her name" an account fraudulently opened in her name or a second card on his account ? Either way she should not be personally responsible for the debt but the estate will be subject to normal rules.

It may be worth her contacting Age UK, they will be used to dealing with this sort of situation.

jeanmd

Sorry my fault for not explaining properly, The cards were in his name and she was the additional card holder. Thanks for your replies.

grumbler

jeanmd wrote: »

...She has phoned the credit card companies to tell them he has passed away only to be told that when he got the cards he applied for her a card in her name making her responsible.

jeanmd wrote: »

Sorry my fault for not explaining properly, The cards were in his name and she was the additional card holder.

An additional cardholder isn't responsible for any debt; so she was told porkies.

PeacefulWaters

jeanmd wrote: »

Sorry my fault for not explaining properly, The cards were in his name and she was the additional card holder. Thanks for your replies.

Then complain about misleading information the card company has given regarding liability.

His estate is liable. She isn't.

bigadaj

The estate needs to be looked at in the round, if the house was only in his name then it could be repossessed and sold to meet the debts. Credit cards would need a charging order but it's not impossible.

Anthorn

The debts become part of her husbands estate and are deducted from any assets, if any.


If she is being unjustly pursued by the card company give the story to the press, "Evil Card Company Victimises Poor Grieving Widow".

jeanmd

Thanks everyone. I have passed all your information on.
Anthorn, it's still early days yet. She found out about the credit cards etc. whilst looking for the insurance policy.

MEM62

jeanmd wrote: »

Sorry my fault for not explaining properly, The cards were in his name and she was the additional card holder. Thanks for your replies.

That does not make her liable for the debt. She needs to take proper advice.