What will happen to credit card due if a person passes away!!!!

[Kiranonlinee]

Just to be curious!!!

What a bank / nbfc is going to if a person having credit card due / personal loan passes away ?

What are steps they are going to take ?

 

[cherryj1988]

Bother the person who continues to use that SIM card on the phone number registered ofc

 

[Ad.Astra]

Just to be curious!!!

What a bank / nbfc is going to if a person having credit card due / personal loan passes away ?

What are steps they are going to take ?

The Banks/NBFCs might request family members to pay the dues, but they cannot force the family members to pay the dues, unless a family member signed some sort of agreement to pay dues on someone's behalf, but I am not sure if such agreement exists.

Other things these financials institutions I guess can do is recover dues from bank account balance (if such clause is part of the CC / Loan agreement) or dilute FD (in case of secured cards).

They might take possession of the assets purchased from the loan amount (in case of vehicle loans , house loans)

 

[vysakh]

The Banks/NBFCs might request family members to pay the dues, but they cannot force the family members to pay the dues, unless a family member signed some sort of agreement to pay dues on someone's behalf, but I am not sure if such agreement exists.

Other things these financials institutions I guess can do is recover dues from bank account balance (if such clause is part of the CC / Loan agreement) or dilute FD (in case of secured cards).

They might take possession of the assets purchased from the loan amount (in case of vehicle loans , house loans)

I thought the legal heirs are liable to pay the dues.

 

[Souvik]

Depends whether loan was secured or unsecured.

A lender cannot compel legal heirs to pay off an unsecured credit, such as a personal loan or credit card debt.
As there is no collateral in place of the loan with an unsecured debt, no property of the deceased can be seized to pay the bill. Furthermore, if a debtor dies before repaying an unsecured loan, the lender cannot recover unpaid debts from the deceased's surviving partner or legal heir.

Read more at:
https://economictimes.indiatimes.com/wealth/borrow/are-legal-heirs-liable-to-pay-their-parents-loan-outstanding-amount-after-their-death/articleshow/92095631.cms?