Credit Cards
Credit Cards: How to Shut Them Down and Handle the Debt
When someone dies, their credit cards do not automatically cancel themselves. If no one takes action, cards can remain open, charges may continue to accumulate, and fraud becomes a real risk. This is a problem many families overlook during the chaos of funeral planning and legal paperwork. If you do not address it quickly, it can cause major headaches for the estate.
Fixing this begins with identifying which cards are out there and getting in touch with the right companies.
How to begin:
Start by Finding All the Cards
Review recent mail, email, or financial statements to identify active credit card accounts. Bank records may show recurring payments or autopay amounts. Check wallets, files, and even digital password managers. The goal is to make a list of every card that may still be open.
If you are not sure where to start, order a copy of the deceased person’s credit report from one of the major bureaus (Equifax, Experian, or TransUnion). This will show all open credit accounts.
Notify the Credit Card Companies
Once you know which cards are active, start calling the customer service numbers on the statements. Tell them the cardholder has died. Most companies will ask for a certified death certificate and your information as the executor or authorized representative.
Ask them to close the account and flag it as “deceased.” If there are authorized users on the card, make sure those users are removed and that no further charges are allowed.
Do Not Use the Cards
It is important that no one uses the credit cards after the date of death, even to cover funeral expenses or other bills. That includes authorized users. Charges made after death can be considered fraud, even if done with good intentions.
Understand Who Pays the Balance
Credit card debt does not disappear when someone dies, but it also does not become your personal responsibility. In most cases, the debt is paid from the deceased person’s estate. If there are not enough assets in the estate, the credit card company may not get paid.
The only exceptions are if you were a joint account holder or co-signer on the account. Being an authorized user does not make you responsible for the balance.
Keep Records and Watch for Collection Calls
After notifying the issuers and closing the accounts, keep documentation of everything. If debt collectors call, explain that the estate is being handled and that you are not personally responsible. If needed, the Consumer Financial Protection Bureau has sample letters and guidance at www.consumerfinance.gov.
In Louisiana, the Attorney General’s Consumer Protection Section may also assist with debt-related questions. Call 1-800-351-4889 or visit www.ag.state.la.us.
Taking care of credit cards early helps prevent fraud, protects the estate, and gives you one less thing to worry about during a difficult time.
