Legal Question in Banking Law in India

08.02.2016

Dear Sir / Madam,

Yes, the terms and conditions for a Credit Card explicitly provide that the legal heirs remain liable to settle the debt in the event of the demise of the card holder.

Regards,

Sir

Under the Law, No one is liable to satisfy the debt of another, unless otherwise agreement in writing. In case the debtor dies, leaving behind the debts, then in such event his estate will be liable to satisfy such debts. The persons who inherit the property of deceased, will be liable to the extend of estate inherited by them of the deceased.

Example : If under the Will you receive Rs. 10,000 or property Y from the deceased, then your liability will only be qua such 10,000 Rs or the property inherited by you and not qua the entire debt. You or your personal assets will not be liable in any manner.

Even if terms and conditions so provide then also, such conditions do not bind you.

Remember the golden rule in law "no one is liable for the act of others". Exception is Contract Law, where a person bind himself for act of others by executing an agreement, example : Guarantee Agreement etc.

So dont be afraid, you are not liable for any credit card dues.

Vivek N Mapara

www.vnmlaws.com