Credit Card debt from family member

DullGreyGuy

glb1234 said:

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?

Banks have been known to encourage people to take on the deceased debt, I know my mother cleared by fathers debts with his life insurance payout that wasnt part of his estate. 

You need to inform them that she is deceased, a dead person cannot continue to operate a credit card. 

HillStreetBlues

What should have happened is the card cancelled and the debt repaid if any estate is left.

If all she had was a joint account and no other assets, then half of that money would be her estate.
From that estate  then funeral expenses could be deducted.


What I would do is contact the CC card company  reporting the death and time it occurred

Then negotiate with the CC  for a full settlement.

Maybe other can advise with how to go forward with a settlement.
But as a start ask them to remove any interest since death.

MrFrugalFever

You almost have two separate issues here; one of potential fraud and the other power of attorney / legal rights to discuss an individual’s account.

Firstly, whether your grandmother has verbally given consent is neither here nor there in the eyes of the credit card company, they may or may not provide primary cardholders to add an additional cardholder. Now if your grandmother had taken the official line and added the son on to the account as a secondary cardholder then no ‘fraud’ has been committed as such because grandmother held liability. If she didn’t then it’s fraud, the use of someone else’s card consistently whether verbally agree upon or not will constitute fraud.

If your grandmother has passed a number of years ago then I am surprised various creditors etc haven’t been informed. Is grandad not of sound mind to do this? Who has power of attorney?

it may be that grandad needs to alert the credit card company of grandmothers passing, however, if the date of passing is requested and there is obvious large spend on a sole CC account post death then expect the CC company to do some background investigating.

NoodleDoodleMan

HillStreetBlues said:

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.

Can you get such a thing as a joint credit card ?

I always thought a second user was an additional card holder - and the principal card holder was reponsible for any usage.

km1500

There is no such thing as a joint credit card.

NoodleDoodleMan

km1500 said:

There is no such thing as a joint credit card.

And, as above the credit card account becomes null and void when the principal passes away.

Subsequent transactions by the additional holder(s) renders them liable for illegal usage.

penners324

Who dealt either the estate? Probate?

It may need reopening.

Sounds as though solicitor advise is needed

Alex9384

HillStreetBlues said:

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

According to some websites, joint credit cards don't exist in the UK.

For example: https://www.bankrate.com/uk/credit-cards/joint-credit-cards/

Although it could be useful for two or more people to be able to use the same credit card and share the responsibility of paying and managing the credit card, in the UK this is not actually possible.

phillw

HillStreetBlues said:

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.

There is no such thing as a joint credit card. You can have an additional card holder, but the debt is in the account holders name. If they die then you should stop using the additional card.

Additional card holder purchases probably won't receive section 75 protection

sourcrates

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

If that is the case, the debt was Grandmas alone, and as she has passed away, with no tangible assets, the debt died with her.

Debt does not transfer between people, nor does liability for it, it was in her name, so it was her debt.

If she had assets tied up in a jointly owned house, ownership of that house passes to Grandad, or another beneficiary, dependant on any will, and as Grandad is still alive, those assets are not recoverable.

Any money of hers should have been used to pay for funeral expenses etc, if anything was left, that would go towards any outstanding debts, paid in order of importance, if what was left did not cover all liabilities, as credit card debt is non essential debt basically, any balance outstanding on the card should be written off under those circumstances.

The card company should be informed of her passing, and that she left no assets, therefore the debt cannot be paid, and they should make a commercial decision and write off the outstanding balance.

This action should have been taken within a reasonable time since her passing, so you should deal with this as a matter of urgency.