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PSo my dad passed away a month ago and he left behind two credit card bills one was a SBI card which has an outstanding amount of 28,000 rupees other is a HDFC card which has an outstanding amount of 9,000 rupees. I talked with sbi customer care and they very rudely told me that you’ll have to pay there is no other option and if you don’t the amount will keep on increasing. Same with hdfc they told me we cannot waiver it off you’ll have to pay. My dad was the sole earner in the family and we cannot manage to pay the credit card bills as we are already struggling with other bills. We received calls from sbi and my mom picked up and told them that my dad has passed away and they just said “okay” and cut the call. Even though they are not pressuring us to pay right now but maybe in the future they will so if i can get any advice on how we can avoid paying or settle it at a lesser amount, that would be appreciated.
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UBefore proceeding, make sure to carefully read the terms and conditions associated with the credit agreement. Within these terms, you may discover a specific threshold or limit that exempts you from certain payment obligations. It’s essential to understand these details to ensure you are fully aware of your financial responsibilities.
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ANo. You don’t have to. Just a few months of calls and some letters and emails they will send … All low cost things …
They won’t engage in anything which costs them serious money
Just to explain the legal stand point
His loans are suppose to be paid from his inheritance, but recovering that is too much effort for 28000.. so they won’t actually do it
also credit card debt is unsecured , they can only spoil his cibil score nothing else
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BThey can’t force the family to pay. At the most, they can file a civil suit for recovery from the estate of your father or if your father had any other accounts with them, debit those accounts.
Some people have also raised question about insurance. Normally, majority of the cards have only accident insurance only and that too air accidents. Other accidents may not be covered and natural deaths may certainly not be covered. Go to the bank web site(s) and download the card feature. Check there. If life insurance is given with the card, then the outstanding would be recovered from the insurance and rest insurance would be paid to you. You would have have to dig up the nominee information to claim that & supply supporting documents, if applicable.
Don’t unnecessarily keep on emailing or calling the banks about the outstanding. They have to send either a registered letter or an email (on your father’s email id) before taking any action. If any recovery agent calls you or threatens you, record the call and report to police.
Hope it helps.
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PPlease exhaust the credit card you’re not liable to pay anything fvck these CC companies. My friend’s father passed away last year he had a car loan for swift on his name, 3 years of instalments are still pending my friend hasn’t paid a single penny yet and is not planning on giving in the future as well.
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LMail to them with a copy of death certificate and tell them that you cannot afford to pay the bill and that you are ready to offer a one time settlement ( OTS) of upto “X” amount ( whatever you are comfortable with) they will negotiate tell them that it is a mental harassment from banks side and that you want to settle asap else you will write to ombudsman.
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BNAL but worked for banks. They will pressurise you and maybe even send someone for a visit but you don’t need to pay. The amount is also small so wouldn’t put too much effort in collections apart from the hard calls and visits which you got a glimpse already. Don’t budge, they will let it go eventually. Take care and wish you the best in these troubling times!
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ASBI simply save credit card has death insurance, it doesn’t give any insurance, but any outstanding debt would be written off. First check the type of credit card you have , then find the benifits the card if offering for card holder online w.r.t insurance. Then you may find the clause that supports your claim .
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PFrom what i enquired from the customer service of both the banks they said no such insurance is there on the card
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PA Credit Card is an Unsecured Loan extended by the bank to the borrower. Ideally you or other family members don’t have any direct liability towards the bank and hence are not obligated to pay it until anyone of you is a vo-signer ( meaning joint account)
The collection team is just trying to extract whatever they can from you by pressuring you.
In India, the legal heirs are liable to repay the loan taken by the deceased borrower to the extent of Estate of the deceased borrower received by them.
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RBoys hold on in my village people just buy anything with credit card and never pay bank recovery agency keep coming try to harass but these people doesn’t care sometime they would just beat the shit out of recovery agent came to home for recovery.
My area is now blacklisted….
So to answer your question you do not need to pay infact there should be a term policy on your father’s card which. You can claim
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EConsider this as a thought experiment – before his death (knowing he was about to die), your father purchases things for the family – say a car or furniture.
Are you saying that the card company has no implied lien on those? In my mind, yes.
Instead, if the money was spent on liquour, gambling and even ‘good’ lifestyle expenses, then how can the bank expect anything from the estate?
So, as always, the answer is “it depends”.
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NMost of the credit cards have insurance build into it. Check the type of the credit card and insurance eligibility for it.
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PCredit card or any loans for that matter are personal liability, and cannot be transferred to any family members, unless their is an asset in lien which the family would like to retain, in which case they will have to clear the dues.
Credit cards are unsecured, so it’s your choice if you want to, you can, if you do not want to, not your problem.
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PAsk them for the settlement connect with nodal officers of banks and ask for settlement and if you receive any calls from recovery agent record the calls and if they come to visit you record their video ask for identity cards they will leave if they still don’t leave and harass you file a complaint on NCW portal and on ombudsman portal and tweet on X tagging relevant authorities, but they will give you settlement you have to only pay 30%-40% of the outstanding amount only
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RHave you inherited anything from your father? If you have not then you are not liable for his debt. Send them an email or letter explaining that your father is no more, you’re not liable for his debt, and want the bank officials to stop harassing you (or you will take legal action). Break contact with the banks at this point if you are not liable. If they harass you, file an online complaint with the banking ombudsman. It is unlikely they will proceed further, eventually losing interest given the small sums. They may institute arbitration on their own (think of it as a private court). But it will in all likelihood be invalid in law as they end up appointing arbitrators on their own. Besides they will in all likelihood arbitrate in your father’s name which will be invalid (any suit or proceeding after a person’s death must be brought against their heirs).
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MYou are not liable but if your father left some asset to you or has money in account then before you getting it these liabilities will be deducted.
In extreme cases if your father has land in his name and that land would be transferred to you before all that happens bank or debt collector will recover their losses or liabilities by selling the land and you will get the rest of money.
And this land sell will be below market price.
If this is your situation pay the bill get a closing or NOC its not worth loosing lakhs of rupees land for this small anount.
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LIn most cases, credit card debt is not inherited by family members unless they are co-signers or guarantors. The bank can recover the amount from your dad’s estate, but if there are no assets left, they usually write it off. You can send a formal letter along with the death certificate to both banks, requesting a waiver or settlement. If they still insist, you can consult a legal advisor or consumer rights organization to understand your rights.
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SThere are two angles to this.
If you inherit your father’s assets, then you will inherit the liabilities too. That means you’ll be liable to pay the amount.
On the other hand, credit cards are unsecured loans. That means if you don’t pay, then banks can’t do shit to you. They can initiate a proceeding in court about taking the money from your father’s estate, which is basically the assets getting transferred to you. But they won’t do anything for 30k inr.
But they might transfer the case to a loan recovery agent. They will keep harassing you and your family. If you can deal with them, then don’t bother paying. They will eventually write it off.
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MThey are not pressurising you coz you aren’t liable. Its not a secured credit. The credit card is on his name its not even going to affect your cibil or something like that. The banks can’t force you to pay shayad will try to recover it but let it go unpaid for few months then settle for a very basic small amount and let it go. My bro in law passed away and left behind cc and loan on my sis. Its not gonna harm you and they won’t do nothing about it
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JFrom what I’ve looked up you don’t directly need to pay it off but if there is something in dad’s name that you or someone is going to inherit then you are obliged to pay his debts (including credit card bills) from the inheritance. If the inheritance is valued at zero or doesn’t cover the debt then the bank cannot ask you to pay it, they will have to write it off
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Again this information is from me researching, this is not legal advice -
RThe legal heirs are liable to settle all liabilities of deceased with the assets inherited but not from personal assets of family members, but if you are not voluntarily settling up then they may send collection agents to your home, ask them that deceased has left no assets(just lie even if there is) in his name and ask them to file case in court, whi h they wont file because of cost involved and the amount is too low. Bank will writeoff the bill in a year.
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SHi , credit cards are unsecured and has no co borrower or co guarantor or co signer atleast not in India . You or your family is not responsible even for paying a single dime . They will try to take money out of you and collection agents will say it’s blah blah , just slap them with death certificate of your father . I repeat DO NOT pay , not even a rupee .
And those saying bank will sell assets , no they can’t , it has to go under SARFESI act and only loan above 20 lakh is counted in sarfesi act . They can not even take possession of assets without court notice , they have to file a case against person who took the loan when that person is deceased that case will not stand and petition will get rejected
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SIn addition to previous comment , please ignore the comments which say you have to pay , I repeat you DO NOT HAVE TO PAY
In India, if a credit card holder passes away without paying their debt, the liability does not transfer to their family members or heirs, unless they were explicitly listed as co-applicants or guarantors for the credit card.
According to the RBI guidelines, banks cannot force family members or heirs to repay the debt, unless they have explicitly taken on the liability or have been declared as co-applicants or guarantors.
The credit card issuer will write off the debt as a bad loan, and it will not affect the credit score of the deceased person’s family members or heirs.
Family member are not legally obligated to repay the debt of deceased person
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KThey cannot force you or go after your property. However they can try to recover from the estate of the deceased i.e. your father’s property. For this they’ll have to approach the courts and file a money/recovery suit.
There is a legal doctrine called “pious obligation” which means the legal heir is morally bound to repay his/her father’s/mother’s debt. Again for this they’ll need to approach the courts and file a suit against you.
They might not approach the courts practically owing to the costs involved, doesn’t mean ideally they can’t or won’t.
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IHey bro, I just saw your post, pay the dues and move on. They will send you a notice because you are the heir.
Here is a post from credit card sub. Take a look, there is similarity to your post.
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