[julessali]

My father passed away 6 months ago. They had a credit card which he was the main account holder and she was an authorized user. The card had a low interest rate, but due to flooding, it was used and now they have raised the rate. A letter was sent to them stating that due to flooding and his death and loss of pension she would be unable to make that high payment and would like the rate lowered. They automatically closed the account and sent off an estate letter and now want over 14000.00. What can she do or should she do, there was wasn't hardly an insurance policy, didn't even cover the funereal-she can't pay this, we don't know what to do?

[JudyKayTee]

My father passed away 6 months ago. They had a credit card which he was the main account holder and she was an authorized user. The card had a low interest rate, but due to flooding, it was used and now they have raised the rate. A letter was sent to them stating that due to flooding and his death and loss of pension she would be unable to make that high payment and would like the rate lowered. They automatically closed the account and sent off an estate letter and now want over 14000.00. What can she do or should she do, there was wasn't hardly an insurance policy, didn't even cover the funereal-she can't pay this, we don't know what to do?

Depends on the State - can't tell if she is on the account or not from your description but she did use it and could very well have liability for paying it.

No surprise that if your father was primary and the income earner that it was closed upon his death.

In some States the spouse is automatically responsible if the card was used for necessities, whether the spouse even was an authorized user.

So - what State?

If your mom has nothing, owes it and they won't negotiate it they may very well proceed to attempt to get a Judgment but before worrying about it I would check the State law and who signed for the account.

[julessali]

The state is Iowa. She was an authorized user-she had a card in her name. We had continued to make payments since February and had planned to make payments all the way until paid off or bankruptcy or whatever it comes to. Can they just come after the whole amount if payments are being made?

[Emland]

If they closed the account then your mother was an authorized user and not a joint account holder which means she is not responsible for the balance, his estate is. If there is nothing left of the estate, the issuer will have to write off the account, but they will make you feel like you are responsible.

I worked for a credit card issuer and it didn't matter which state. Once a person called in and stated the card holder was deceased, we closed the account. Often widows had been using the card and paying it for years, but the agreement is with the account owner, not authorized user and that is why the account is closed.

Tell the credit issuer to send all paperwork to the executor. The executor can then send back a letter saying there isn't any money left, etc.

[JudyKayTee]

If they closed the account then your mother was an authorized user and not a joint account holder which means she is not responsible for the balance, his estate is. If there is nothing left of the estate, the issuer will have to write off the account, but they will make you feel like you are responsible.

I worked for a credit card issuer and it didn't matter which state. Once a person called in and stated the card holder was deceased, we closed the account. Often widows had been using the card and paying it for years, but the agreement is with the account owner, not authorized user and that is why the account is closed.

Tell the credit issuer to send all paperwork to the executor. The executor can then send back a letter saying there isn't any money left, etc.

Sorry and don't mean to be argumentative but the law is: "State laws govern what property is exempted from probate procedure and what is exempt. If the deceased was married and lived in a community property state, the surviving spouse is usually responsible for most debts regardless of who held the account." (I'm quoting myself here. This has been posted several times before, including a spouse who was sued for the debt and lost based on community property laws.)

This is particularly true of debts incurred for necessities.

Good news - the community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin.

Very possibly some credit card companies - perhaps the one you worked for - are "nicer" than others and don't pursue the surviving spouse.

If I'm missing something here, please let me know.

[julessali]

I don't know that much about estates. Everything as far as house, vehicles, one CD, etc. was in both of their names, he was dying of cancer and we knew he didn't have mcu time left. The life insurance did not even cover funeral expenses and since everything else had been put in moms name also not just solely his name does that mean there is nothing left to the estate.

[JudyKayTee]

I don't know that much about estates. Everything as far as house, vehicles, one CD, etc. was in both of their names, he was dying of cancer and we knew he didn't have mcu time left. The life insurance did not even cover funeral expenses and since everything else had been put in moms name also not just solely his name does that mean there is nothing left to the estate.

The estate should have been probated. Was there a Will? Someone may have to file a final tax return.

Some things in joint names - such as real estate - can be taxable.