How to Close Credit Card Account When Account Holder Is Deceased
When a loved one passes away, the emotional toll can be devastating. Unfortunately, even after death, the decedent's credit card debts will still remain active. The family must protect the estate by requesting banks to close the accounts. By closing the accounts, you can protect the estate from additional fees and charges, as well as potential identity theft. Your efforts will also protect the family from fielding uncomfortable collection phone calls.
Unless an account is jointly owned, the estate is responsible for paying the balances due. The decedent's family is not liable for these debts. These rights are protected by the Fair Debt Collection Practices Act.
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Instructions
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Order a copy of the death certificate from the funeral home. If the funeral home cannot provide the document, contact the health department's division of vital records.
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Gather up the decedent's credit cards, credit card statements and credit report, if applicable. Review the documentation to determine which accounts need to be closed. The bank's phone number will appear on the credit cards, credit card statements and credit report. Keep written records of all communication with the bank.
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Call the credit card companies and explain that the cardholder is deceased. Ask if the decedent had purchased a credit protection policy, which would pay the balance upon the cardholder's death. If a policy is in place, ask the bank to activate it.
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Ask the bank to close the account. The customer service agent will probably need a copy of the death certificate. Ask for a mailing address and the name of a contact person who can receive mail at the bank.
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Send the document via certified mail. Mail it directly to the contact person, and send the signed certified mail receipt to the executor of the estate.
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Notify the executor of the estate of any outstanding credit card debts, as well as the written notes from your conversations with the bank. The estate is responsible for all accounts, which are solely owned by the deceased.
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Tips & Warnings
When ordering the death certificate, pay an additional fee to receive additional copies. This will save both time and frustration as you deal with multiple banks.
To obtain a credit report of the decedent, send a copy of the death certificate and a letter to the credit agency explaining the situation.
Equifax Credit Information Services
P.O. Box 740241
Atlanta, Georgia 30374
Experian
P.O. Box 9532
Allen, Texas 75013
TransUnion
P.O. Box 6790
Fullerton, California 92834
Never provide your personal information, including your Social Security number, date of birth, or mother's maiden name. In addition, do not personally pay any balance due on the accounts. The Federal Trade Commission protects the family from incurring debt from a deceased relative, unless the account was jointly owned or co-signed by another individual.
If the account was jointly held or co-signed by another individual, that person may be responsible for the balance due.
According to Consolidated Credit Counseling Services, surviving spouses in community property states may incur additional liabilities. In these states, the bank may be allowed to collect the account balance from the surviving spouse. If this situation applies to the decedent, contact an estate lawyer for further details.
