How to Negotiate With Credit Card Companies After a Person's Death

The person charged with negotiating with credit card companies after a person's death is known as the executor of the estate, if the deceased dies with a will, or the administrator, if there is no will and the court appoints you to handle the person's affairs. If you're responsible for handling the affairs of a deceased loved one, one of your duties includes squaring away your loved one's debt with creditors, such as credit card companies.

The Federal Trade Commission states that credit card debt is paid from the assets the deceased leaves behind. If the debt supersedes the amount of the assets available, the credit card company will usually write off the debt. However, there are certain circumstances in which you may be responsible for the credit card debt after a loved one dies. How you negotiate with credit card companies after someone dies depends on your relationship to the deceased, your legal duties (if you're responsible for handling the person's estate) and your personal liability for the credit card debt.

Instructions

Procedure

1

Gather up all the deceased's bills and contact the credit card companies to notify them of the person's passing. You can do this by telephone, but you may be required to follow up your call in writing and send a copy of your loved one's death certificate. If you're not responsible for handling your loved one's estate, the executor or administrator will perform this duty. If the creditor calls you, the FTC states that you don't have to speak with them; however, if you represent the person's estate or are legally responsible for the debt, it may be advisable to see if you can resolve the debt. Send all correspondence certified, return receipt requested to document your communication with creditors.

2

Assess your personal liability for the credit card debt. Creditcards.com notes that if you are a co-signor to the account, the debt is deferred to you, regardless of your relationship to the deceased, be it spouse, family member or business partner. But if you're simply authorized to use the account and the credit card was held solely in your loved one's name, you are generally not responsible for the debt. Exceptions can apply if you are the spouse and reside in a community property state--these states may consider the credit card debt a joint debt, even if your spouse applied for the card individually, without you as a co-signor. Community property states include: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you live in a community property state, contact an attorney to see if you are responsible for the debt.

3

Be wary of cold calls from unknown creditors, the Federal Trade Commission warns. Con artists often read the obituaries to get names of people who have recently died and contact the person's family about a fraudulent credit card debt. Never give out your personal information (especially your Social Security card number) and ask the party to provide written documentation of the debt.

4

Work with an attorney who specializes in probate matters to determine which assets can be used to pay off credit card debt. Creditcards.com points out that certain assets (such as IRAs, 401(k)s, brokerage accounts and insurance) typically pass directly to the beneficiaries and are not included as part of the deceased's estate. If you're handling the deceased's estate and aren't knowledgeable as to which assets may be used to pay off credit card debt, always get an attorney's advice.

5

Protect your loved one from identity theft after death. It may be a good idea to write to the three major credit bureaus--TransUnion, Experian and Equifax--and let them know of the person's passing so that his Social Security number cannot be used by a con artist to procure credit cards or loans. In your correspondence, ask the bureau not to issue credit to the deceased. You may also request that the bureau inform you if any applications for a credit card or loan are made in your loved one's name.