Consumers have the option to buy protection on their credit cards that pays the balance if they die. But it is usually cheaper to buy term insurance yourself. If we say banks have to eat the debts of the dead, then they will start using actuarial tables before issuing credit cards -- and older folks will have a hard time getting approved.
I've buried my parents, grandparents, numerous relatives. The family always has to return to the funeral home about a week or so after the death TO PAY for the funeral! The funeral home expects payment with cash, check or credit card. During this financial transaction, it is a perfect time to distribute meaningful post-death materials: where to get counseling, how to protect yourself from scams, what responsibilities you have in terms of debt, changing titles on your home/car, etc. I see no problem with this.
The funeral director may seem concerned, but he is a businessman first.
Re: Contract law
Broadway
2/19/2012 11:25:57 AM
Noreen, I hope you were kidding about the funeral director comment. When people experience a death of a family member, particularly a member of their immediate family, they are in shock. The funeral director / religious figure is there to hold the family together and guide them through the funeral itself, which is an ordeal enough. Last thing the family needs to worry about at that time is the deceased's debts. It's hard enough to make sure you notify everyone about the death and make sure everyone gets invited to the wedding and that the obit in the newspaper appears correctly.
Obviously, in your view, there is plenty of time after the death for the banks to chase down these debts.
Personally, I feel the banks should be in the hole for these debts. Consider them a bad bet. Or they could buy death insurance on their outstanding debts, and then when somebody dies who owes them money, they can collect on the insurance. A perfectly market-based solution.
I understand what you"re saying and, sure, I agree some people are intimidated by debt collectors. But I don't think the answer is to Impose more regulatiions or blame the banks for trying to collect outstanding debt.
Wouldn't it be better for existing consumer agencies to educate people about their rights? Maybe hey could provide funeral directors with tasteful materials to give survivors explaining important consumer rights and responsibilities.
Re: Contract law
Broadway
2/18/2012 8:45:48 PM
Noreen, many people are not as savvy as you. They get a call from a bank about debt and they panic, don't know what to say, and perhaps make a wrong move out of fear and/or ignorance.
You should do that...they are much more interesting than the more usual "big deal"...
Opps! Sorry for the typo! I'm blaming Apple. I posted from my iPhone. Damn autocorrect.
I want to get involved in a "bug deal."
Absolutely right. They don't think being a joint owner is a bug deal until they get saddled with responsibility to pay the bill.
Re: Contract law
driven
2/17/2012 3:45:46 PM
Some credit card holders are so lax about reading what they sign that they don't even realize which accounts they hold in joint ownership maybe before they start saying they are being unfairly asked to pay a debt they should pull thei credit reports and check the facts.
Re: Contract law
Tenacious
2/17/2012 3:16:38 PM
I agree Noreen and I will tell you something else. I know firsthand that some of the relatives who cla they are being unfairly harassed are actually joint cardholders who just don't want to pay the bills.
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