It’s never easy to lose a loved one, and handling their financial matters can be very difficult. Cancelling their credit cards is just one of the many things you might have to take care of. Even though it might not be your top priority, you should take quick action to resolve this in order to prevent future problems like fraud or identity theft.
We’ll answer commonly asked questions, take you through the steps of canceling a credit card after a loved one passes away, and provide you with additional resources to help you through this process in this guide.
Steps to Cancel a Credit Card After Death:
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Notify the Credit Card Issuer:
- Contact the credit card issuer as soon as possible to inform them of the death. You can usually find the contact information on the back of the card or on the issuer’s website.
- Be prepared to provide the deceased’s name, Social Security number, date of death, and a copy of the death certificate.
- The issuer will guide you through the cancellation process and may ask for additional documentation, such as a will or court order naming you as the executor of the estate.
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Resolve the Account Balance:
- The deceased’s estate is responsible for paying off any outstanding balance on the credit card. This will be handled by the executor of the estate during the probate process.
- If the estate doesn’t have enough assets to cover the debt, creditors may be out of luck. This is because credit card debt is considered unsecured debt.
- Family members are not responsible for a loved one’s credit card debt, except in the case of a joint account. Authorized users are also generally not responsible for paying balances.
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Check for Rewards Redemptions:
- If the deceased had any rewards left on their credit accounts, you may be able to redeem them as an authorized representative of the estate.
- Contact the issuer to inquire about redeeming rewards and make sure the account balance is paid in full.
- Many issuers have a timeframe for paying off the balance, so be sure to check this detail. Rewards will be issued in the deceased’s name and sent to the address on file.
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Cancel Recurring Payments:
- If the deceased used their credit card for recurring payments, such as utility bills or subscriptions, you’ll need to cancel these. Canceling the credit card is not enough to stop these payments from being processed.
- Check any statements your loved one left behind for recurring bills, including cell phone service, internet service, and cable. Any services that have automatic payment with a credit card will need to be canceled with the service provider.
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Dispose of the Card:
- Once the card account has been canceled, it’s important to destroy the physical card. Also, try to gather and destroy any cards from authorized users.
- The best way to dispose of any cards is to run them through a shredder or cut them into pieces so that the magnetic stripe and EMV chip aren’t viable and the personal information isn’t readable.
- Also, check to see if anyone has access to any credit account numbers and inform them that the accounts are no longer valid.
- Lastly, destroy any remaining card statements that are more than 60 days old. However, if any of the credit accounts were used to make tax-deductible purchases, hold on to those statements from the past six years. You will probably need them to help complete any final tax returns.
Additional Resources:
- Bankrate: https://www.bankrate.com/finance/credit-cards/how-to-cancel-a-credit-card-after-death/
- Synovus: https://www.synovus.com/personal/resource-center/managing-your-finances/what-to-do-when-a-credit-card-holder-passes-away
- Experian: https://www.experian.com/blogs/ask-experian/what-to-do-with-a-deceased-persons-credit-cards/
- Equifax: https://www.equifax.com/personal/education/credit/article/what-to-do-with-credit-cards-after-a-death/
- TransUnion: https://www.transunion.com/credit-help/credit-and-deceased-relatives
Frequently Asked Questions:
Q: Can I use a deceased person’s credit card to pay for funeral expenses?
A: No, using a deceased person’s credit card is never recommended. It is fraud to use someone else’s credit card, even if you were an authorized user. This could lead to legal and financial consequences.
Q: What happens to a joint credit card account when one of the cardholders dies?
A: The surviving cardholder becomes solely responsible for the account. The deceased’s name will be removed from the account, and the surviving cardholder will be responsible for any outstanding balance.
Q: What if I don’t know all of the deceased’s credit card accounts?
A: You can request a copy of their credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion). This will provide you with a list of all open accounts in their name.
Q: What should I do if I’m being contacted by debt collectors about a deceased person’s credit card debt?
A: You are not responsible for a deceased person’s credit card debt, except in the case of a joint account. If you are being contacted by debt collectors, you can inform them that the person is deceased and that you are not responsible for the debt. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if you feel that you are being harassed or treated unfairly.
Remember:
Dealing with a loved one’s death is a difficult time. Don’t hesitate to seek help from family, friends, or professionals if you need it.
Finding authorized users and co-signers
Making contact with any authorized users to request that they stop using the credit card right away is an essential step in canceling your loved one’s credit card. It is fraud to use a deceased person’s credit card, and doing so could result in unforeseen financial penalties or even jail time for the authorized user. To that end, ask authorized users to destroy or return their card to you.
Only joint account holders can use the credit card freely after someone’s passing. If the account was opened jointly, the person who opened it with your loved one may be liable for any unpaid debt.
You may also be responsible for settling the account balance if:
- If your state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin) is community property, you are a surviving spouse. You and your spouse are equally accountable for any debts your spouse accrued during your marriage, including credit card debt.
- You must pay specific expenses (like medical expenses) as required by state laws because you are a surviving spouse or an adult child.
- As the executor or administrator of the estate, you failed to follow the probate regulations. Should you make an incorrect payment at the incorrect time or give assets to beneficiaries that were intended to be used for debt repayment, you might be responsible for compensating any loser creditors, such as a credit card company.
Tips for closing a loved one’s credit card accounts
- Make a list of the active accounts that your loved one currently has and the passwords that are required to access them.
- Determine who is authorized to use it, then request that they destroy or give back their card to you.
- Verify that the surviving account holder is managing joint or co-signed accounts.
- Submit your request to close the accounts. Additionally, get in touch with the three credit bureaus to freeze the credit of your loved one and shield them from identity theft.
- Compare your loved one’s bank statements to see if there were any automatic or recurring payments made during the six months after their passing.
It’s normal to want to put off the paperwork associated with a loved one’s passing when they pass away. But in order to safeguard the identity and memory of your loved ones and your family, there are some things that must be done right away.
After a loved one passes away, you’ll have a lot on your plate financially, and canceling their credit cards should be your first priority to avoid fees and unintentional charges. The following actions to cancel their credit cards should be taken as soon as possible, even though you should take the time necessary to handle the administrative side of your loved one’s passing with clarity.
Your loved one may have left you with a list of all their active accounts that are currently open, along with the passwords you need to access them, if they were neat about things. If not, you should request a copy of your loved one’s credit report from the three credit bureaus when you contact them to freeze their credit. This will have a full list of all your loved ones credit accounts, both active and inactive.
If you can provide the identity-verifying information requested by the credit card company, you can obtain account information over the phone even if you don’t have the passwords.
After compiling a list of all the credit card companies connected to your loved one, investigate whether any balances are owed on the accounts. You can accomplish this by calling the credit card company, checking your mail for any bills or statements, or accessing their account online.
Credit card companies usually require the estate to request payment of the outstanding balance or to take full responsibility for the costs before they will cancel your loved one’s credit cards. Creditors are not allowed to use dishonest methods to force you or your family to pay outstanding account balances under the Fair Debt Collection Practices Act.