Does credit card debt die with you?

filigree_2

Briefly my uncle is terminally ill. He is a "difficult" character and it is not always possible to reason with him. Somehow he got a credit card and is merrily spending money he doesn't have, convinced that they will have to take his corpse to court to get the money back!

He lives in a housing association flat on benefits and has no assets to offset the debts. Bluntly, can the CC company chase his surviving family to repay his debts?

Alfie_E

No. The CC company will have a claim against his estate, after his death. If the value of his estate doesn't meet his debts, it's tough on his creditors and the matter ends there.

The only time that doesn't apply is if a debt is in joint names, or someone else agreed to be a guarantor for the debt. Debt can also be transfered to a spouse.

skywalkerbm

The debt is his and his only.

When my dad died 6 years ago he owed about £15000 to various credit cards.

I called them up to let them know he had died and a couple asked for my bank details so I could repay them (chancers!!!)- I replied no thanks and his debt was cancelled.

Why do you think they charge such high interest rates vs personal loans.

Luke

seaniboy

most providers ask for the death certificate and never claim from an estate, legally your uncle is commiting fraud (obtaing credit knowing you have no intention/means to pay the debt) but then its not like they can charge him with fraud for it when he is gone

creditcardking_2

filigree wrote:

Briefly my uncle is terminally ill. He is a "difficult" character and it is not always possible to reason with him. Somehow he got a credit card and is merrily spending money he doesn't have, convinced that they will have to take his corpse to court to get the money back!

He lives in a housing association flat on benefits and has no assets to offset the debts. Bluntly, can the CC company chase his surviving family to repay his debts?

No they can not, I am sorry to hear about your uncle, I do not condone fraud but he may as well have fun before he departs. If he is likely to be a beneficiary of an estate then they would try to get the money back that way. It would be very bad publicity for a Credit Card company to be chasing grieving relatives for unpaid debts.

timbouk

Does anyone have any links for this. We have just found out my father in law has a few thousand debt on a card; he is unfortunatly on his last step in a marie curie hospice with cancer. We only found out today about his cards. Mother in law is really panicing now, they have no money!

Can anyone help here!

Am I correct in assuming if he has life insurance, the benificiary would be his wife. Therefore can they try to recover the debt from her? She is a pensioner and is struggling now!

smartsaver

filigree wrote:

Briefly my uncle is terminally ill. He is a "difficult" character and it is not always possible to reason with him. Somehow he got a credit card and is merrily spending money he doesn't have, convinced that they will have to take his corpse to court to get the money back!

He lives in a housing association flat on benefits and has no assets to offset the debts. Bluntly, can the CC company chase his surviving family to repay his debts?

Dodgy business - if he is well enough to gad about spending money one wonders just how 'terminally' ill he is.

I have known those so called terminally ill people to out lives ones who thought they had their whole lives in front of them. People have been given six months and lasted 3 years or longer. Hope he can keep up the minimum payments.. He is rather relying on dying isn't he? :eek: And it isn't an exact science.

While no one can blame him for having fun in the last sector of his life - I hope he keeps it in proportion. Here's to him :beer:

Phonix

[can the CC company chase his surviving family to repay his debts?

No.

Although I wouldn't encourage him or have any of this credit spent on his family.

Bossyboots

timbouk wrote:

Does anyone have any links for this. We have just found out my father in law has a few thousand debt on a card; he is unfortunatly on his last step in a marie curie hospice with cancer. We only found out today about his cards. Mother in law is really panicing now, they have no money!

Can anyone help here!

Am I correct in assuming if he has life insurance, the benificiary would be his wife. Therefore can they try to recover the debt from her? She is a pensioner and is struggling now!

Try this one http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DebtsAndArrearsArticles/fs/en?CONTENT_ID=10013093&chk=GeJ8kQ

timbouk

Thanks for the link, sadly he died about 2 hours ago. ;(

Bossyboots

timbouk wrote:

Thanks for the link, sadly he died about 2 hours ago. ;(

I am sorry to hear that. Condolences to you and your family.