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?
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.