Bank Credit Cards Collections
09.05.11
Many people may not realize that they could be held liable for bank credit cards owed by a deceased family member. Some children who have recently lost a parent are appalled to receive letters from the credit card issuers of their deceased relatives just week after their death. Discover Card, for example, sends out form letters offering "sincere apologies" on the death of the card holder.
This is followed up by an offer for the family member to assume the debt balance on the card at an introductory APR of 0% which increases after 6 months. The bank then threatens that if the family member does not want to take over the account they will have to "discuss" how the estate can pay off the credit card balance. While this is highly unethical, it is not illegal as the estate can be held liable for debt if it has sufficient money to pay it.