Legal Question in Wills and Trusts in California
Credit card debt to estate
A man uses a credit card to buy something for a friend for a few thousand dollars. They are in California. There is nothing in writing signed by the friend, but there is an informal agreement that the friend will pay it back at some indefinite time. The man has a record of the purchase. Some time afterwards the man dies. His son demands that the friend repay the money to the son plus interest. If the son is in charge of the estate, does he have a right to do this? Would the friend be required to pay more than what the estate paid to the credit card company towards the debt? Does the friend have a right to be informed how much of the amount was paid to the credit card company by the estate or what per cent of the total balance was paid to the credit card company by the estate? Is there a specific statute or statutes covering this?
1 Answer from Attorneys
Re: Credit card debt to estate
The representative of the estate is required to collect the debts owed to the decedent. The amount of the charge is by your admission a debt, being a loan to the friend. The agreement is a contract, and is not required to be in writing. It is enforceable. The friend should make arrangements to repay the loan. If the agreement was non-specific with respect to whether or not interest was to be repaid or what rate of interest, the law implies a reasonable rate of interest, which in California would be 10% simple interest. How the man chose to make the loan, i.e. leaving it on the card and making payments, or paying it off when it appeared on the bill, is not relevant.
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