Credit Card debt from family member

glb1234

Hi! I’m looking for some advice for my Grandad…  

A few years before my Grandma passed away she let her youngest son and his wife use her credit card because they were struggling. They managed to rack up around £10k. They have been paying the bare minimum on the card and have since borrowed £18,000 off my Grandad in addition to the card. 

In the meantime he is worried about people chasing him as they have missed a payment or 2 for the credit card, but I’m under the impression they aren’t too bothered because it legally is not their problem!   Is there anything he can do? 1. So people aren’t chasing him, and 2. Something that can but put in his will to say that the whole credit card balance is theirs?   He doesn’t want my mum being half responsible for this debt that is racking up upon his death

Sorry for the long post!

MorningcoffeeIV

Has no one advised the card company of the cardholder's death? They need to and it needs to be settled from her estate. 

If your grandfather wants to adjust the will to reflect debts then he can do that, but for now, the debt is the responsibility of whoever's name it is in (or of their estate if deceased). 

MattMattMattUK

glb1234 said:

Hi! I’m looking for some advice for my Grandad…  

A few years before my Grandma passed away she let her youngest son and his wife use her credit card because they were struggling. They managed to rack up around £10k. They have been paying the bare minimum on the card and have since borrowed £18,000 off my Grandad in addition to the card. 

In the meantime he is worried about people chasing him as they have missed a payment or 2 for the credit card, but I’m under the impression they aren’t too bothered because it legally is not their problem!   Is there anything he can do? 1. So people aren’t chasing him, and 2. Something that can but put in his will to say that the whole credit card balance is theirs?   He doesn’t want my mum being half responsible for this debt that is racking up upon his death

Sorry for the long post!

Legally is is very much their problem, at the very least they have been committing ongoing fraud and it could get worse from there. 

glb1234

We just assumed he was responsible until he died and then the remaining would come out of his estate. Does that mean we could let them know she died and it would be frozen until he passed away (as he obviously still lives in the house so isn’t possible for it to be paid out of her half of the estate yet)

HillStreetBlues

Once the grandma passes away any use of the card would be revoked.
So the son could be done for fraud.

This is as long as card was in her sole name not a joint credit card account.

MattMattMattUK

glb1234 said:

We just assumed he was responsible until he died and then the remaining would come out of his estate. Does that mean we could let them know she died and it would be frozen until he passed away (as he obviously still lives in the house so isn’t possible for it to be paid out of her half of the estate yet)

The debts that they incurred were not your grandma's, they are the those of the son, who is committing fraud by using her credit card. Also, who administered her estate? Her death should have been recorded, probate worked through, bank accounts frozen then closed etc. 

glb1234

Sorry I don’t think I’ve been clear with the post - she helped them out by letting them use the card and it soon racked up. She didn’t tell my grandad until a couple of years before she died that she’d helped them out. So not really fraud as she let them use it.   The card hasn’t actually been used since she died

HillStreetBlues

glb1234 said:

Sorry I don’t think I’ve been clear with the post - she helped them out by letting them use the card and it soon racked up. She didn’t tell my grandad until a couple of years before she died that she’d helped them out. So not really fraud as she let them use it.   The card hasn’t actually been used since she died

Did your grandma leave an estate?
House won't be included (assuming they were married),  but any money in a person account  or half in a joint account

DullGreyGuy

glb1234 said:

Sorry I don’t think I’ve been clear with the post - she helped them out by letting them use the card and it soon racked up. She didn’t tell my grandad until a couple of years before she died that she’d helped them out. So not really fraud as she let them use it.   The card hasn’t actually been used since she died

When you say it was her card, was she the account holder? If she was then this should have been dealt with as part of her estate and if the estate was insufficient to cover the debts the remainder would have passed with her

glb1234

HillStreetBlues said:

glb1234 said:

Sorry I don’t think I’ve been clear with the post - she helped them out by letting them use the card and it soon racked up. She didn’t tell my grandad until a couple of years before she died that she’d helped them out. So not really fraud as she let them use it.   The card hasn’t actually been used since she died

Did your grandma leave an estate?
House won't be included (assuming they were married),  but any money in a person account  or half in a joint account

Yes a joint account which is now just in my grandads name. Don’t think there would have been enough to clear the credit card

glb1234

DullGreyGuy said:

glb1234 said:

Sorry I don’t think I’ve been clear with the post - she helped them out by letting them use the card and it soon racked up. She didn’t tell my grandad until a couple of years before she died that she’d helped them out. So not really fraud as she let them use it.   The card hasn’t actually been used since she died

When you say it was her card, was she the account holder? If she was then this should have been dealt with as part of her estate and if the estate was insufficient to cover the debts the remainder would have passed with her

The credit card was just in her name. The estate was shared with my Grandad who is still alive so then her half passed to him and I’m assuming ‘her’ credit card debt also passed on to him.   As the bare minimum is being paid off - maybe that’s why it was left as it was?