Legal Question in Credit and Debt Law in Pennsylvania
Credit Card debt and spouse'e death ?
My mother-in-law recently lost her husband to death and he had several credit cards (in his name with his wife as an authorized user). Upon his death, she called the credit card companies to let them know that she did not have the means to pay off these bills. She was told that because they were in HIS name, she was not responsible. Well, now she starts to get calls from a collection agency indicating that she owes a portion of those bills (they indicated they were GRATIOUS and would forgive some of the debt). She then called the credit cards back, and the person she spoke to this time indicated that she may have been misled the first time, and that she owes this debt.
My question, what are the laws in the state of PA (I know it is not a community property state) for her being responsible for HIS debt ? Also, what does she need to do with the credit card companies (send back the bills with a copy of the death cert. indicating his death and that she cannot pay off the debt?... Also, what can she do with these collection agency folks calling to get them off her back ? Many thanks''
1 Answer from Attorneys
Re: Credit Card debt and spouse'e death ?
You asked about credit card debt after the death of the cardholder.
Generally the cardholder is the primary responsible party for the debt on a card. But if an authorized user used the card for purchases that were for the primary benefit of the authorized user (AU) then the authorized user can be held responsible for that portion of the debt.
For instance, if the AU used the card to pay for a delivery of heating oil that was delivered just prior to the cardholder's death the AU would probably not be responsible for that amount or at least to the extent that the oil was used or not used before the cardholder's passing. But if the AU bought a fur jacket with the card then the AU could probably be held responsible for that portion of the debt.
Speak with a consumer lawyer and have him/her negotiate the debt amount. The attorney who settled the estate can also probably help with this matter.
You may also wish to review the law and websites discussing the Fair Debt Collection Practices Act. It's both fun and profitable to catch debt collectors violating this act. Attorneys are always happy to take an FDCPA case because the debt collector must pay their fee when they win.
Regards,
Roger
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