Credit card debt of deceased person with life insurance option?

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5 posts
lairepme
 
Posts: 2
Joined: Mon Aug 15, 2011 12:01 pm
Location: VA

Credit card debt of deceased person with life insurance option?

Postby lairepme » Mon Aug 15, 2011 12:11 pm

Hello all,

This is my first post. I've done a little searching on the site but didn't see an answer to my question. My mother had a credit card and passed away recently. She was the only account holder/user on the card. She really didn't have an estate. The house was moved to my father's name.

The credit card company is demanding repayment of the balance. We feel she probably had life insurance on the card. They can't say whether or not she did because they can't produce any record of her application, probably due to recent mergers. Is there some sort of protection to keep them away from the house since they have no way of showing whether or not she had insurance on the card, much less even have record of the application?

Is there a VA state government agency I can pose this question to for further clarification?

Thanks


Money card
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Location: New York state

Postby Money card » Mon Aug 15, 2011 6:56 pm

I believe since they were her charges. if your father is still alive, even if they were divorced living in different states, he might have to help out because the house is under his name and at 1 time they were married.

which credit card company is this?

I'm sorry to hear about your Mom.

DarkLabel
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Location: Florida

Postby DarkLabel » Mon Aug 15, 2011 9:58 pm

lairepme wrote:Hello all,

This is my first post. I've done a little searching on the site but didn't see an answer to my question. My mother had a credit card and passed away recently. She was the only account holder/user on the card. She really didn't have an estate. The house was moved to my father's name.

The credit card company is demanding repayment of the balance. We feel she probably had life insurance on the card. They can't say whether or not she did because they can't produce any record of her application, probably due to recent mergers. Is there some sort of protection to keep them away from the house since they have no way of showing whether or not she had insurance on the card, much less even have record of the application?

Is there a VA state government agency I can pose this question to for further clarification?

Thanks


Unless your father was a co-applicant they have NO RIGHT to demand any sort of repayment and you can indeed report them. Ignore them and find a lawyer to find out how you can completely stop them from harassing you. Once a person dies, all debt is automatically erased unless the other person is a co-applicant (Authorized users aren't necessarily responsible for it, but it will negatively affect their credit report).

As for the house, that is something you will have to talk to a lawyer about. While the name transfered into your fathers name and they can't sue for it (unless you just stop making any mortgage payments, then the bank who issued the mortgage has the legal right to take the house back). If the house is in a reverse mortgage, then it belongs to your father until he dies and then the bank takes the house back.

If you're talking about a credit card company (or most likely a collections agency) and you fear that they will try to garnish your wage/posses your home etc. then don't worry. They issued an unsecured loan to someone who just passed away, I'm afraid they can't get that money back and are just scaring you guys in order to be repaid. Remember, these companies prey on you and have no souls. They will use any means to get their money back with interest.

lairepme
 
Posts: 2
Joined: Mon Aug 15, 2011 12:01 pm
Location: VA

Postby lairepme » Tue Aug 16, 2011 3:02 pm

Money Card
The card was originally a Wachovia Platinum Visa which is now Wells Fargo. That's part of the reason they can't find any history of the original application. My parents were married the whole time.

DarkLabel
When the card was opened, there was no co-applicant. When she died, there were no authorized users aside from herself. The house is completely paid for, so there is no mortgage company involved. The title is free and clear now in my father's name.

Money card
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Postby Money card » Tue Aug 16, 2011 10:15 pm

Just got off the phone with a wells fargo account manager, she says you have to contact a lawyer.



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