Avoide them, no recovery against dead person possible neither legal heirs of deceased liable to pay debt.
Interest is also wrongly calculated. And if next receive any bill through registerd mail, refuse to accept.
Debt of a dead credit card holder
Mr. NKP was a retired person. when he was 71 years old he got a credit card from a private sector bank. He got ill at 75 years and then he stopped to pay credit card bill. After few months he died. when he was died he had debt of Rs. 23000 with all interest and taxes. After that bank send recovery agent 10 times and they got information of death and just take xerox of Death certificate and go away. NKP's well wishers send mail with detail of death of NKP with document to the head office of credit card department. But bill is continue coming through mail and from call center also. After one year of death credit card department claim 51000 with interest in bill name of NKP . What should we have to do ?
Asked 4 years ago in Civil Law
23 Answers
the onus for the payment on death of the card holder lies with the legal heir. So, to the extent there has been a property inherited, the legal heir needs to pay the amount outstanding on the credit card with interests and all other charges, as applicable.
You can send them a legal notice regarding this.
After that if matter is not resolved than you can complaint to the banks ombudsman.
Credit card is unusually an unsecured debt. The legal heirs are liable to the lender for the credit card dues, only to the extent of value/assets, if inherited, from the deceased. If no assets are inherited, the surviving spouse or children have no liability towards the lender. All that they are entitled to is Rs. 23,000/-
Dear Sir,
From the bills issued by credit card department, try to find out as to whether the money spent/required by the dead person (late NKP) was for the legal heirs or for his personal use. Also confirm from some other bank's credit card department as to whether is any liability on legal heirs of dead person in regard to payment of credit card bills. This will make you more clear. As of now, the legal suggestion to the bills raised by the credit card department is that send the legal notice to close the case affixing copy of death certificate.
The debt of this person continues upon the legal heirs of the dead person who inherited his properties. That legal heirs must approach the bank and seek a closure at the earliest otherwise interest will continue to be charged and finally the bank might even obtain a exparte court order and attachment of the movable and immovable properties of the deceased person. It is best to avoid this.
Debt of a deceased is met from his estate.
So the legal heirs getting his estate shall become liable to meet out the debt payments subject to other laws .
Dear Sir,
It is purely person debt and cannot be passed over to the legal heirs. Moreover the Doctrine of “pious obligations” is deleted. Pleasse read the following
DOCTRINE OF PIOUS OBLIGATION –DELETED FROM STATUTE
Under the Hindu Law, a son is under a pious obligation to discharge his father's debts out of his ancestral property regardless of the possibility that he had not been profited by the debts, gave the debts are not avyavaharika.
the Karnataka High Court, the wife was excluded from pious obligation simply because she did not have a right by birth in the coparcenary. Therefore if a daughter acquires a share in the Mitakshara coparcenary by birth it must follow that she will now be liable.
Unlike in the case of the sons, the daughters have no pious obligation to pay the debts of their father. ... As per the Section 6 of the Hindu Succession Act, 1956, after the amendment the daughters shall have the same rights and liabilities as if she would have been a son.
SUCH PIOU OBLIGATION DE-RECGNISED BY THE FOLLOWINGAMENDED ACT
(4) After the commencement of the Hindu Succession (Amendment) Act, 2005*, no court shall recognise any right to proceed against a son, grandson or great-grandson for the recovery of any debt due from his father, grandfather or great-grandfather solely on the ground of the pious obligation under the Hindu law, of such son, grandson or great-grandson to discharge any such debt: Provided that in the case of any debt contracted before the commencement of the Hindu Succession (Amendment) Act, 2005*, nothing contained in this sub-section shall affect—
You don't have to pay. As you have informed them that the respective person is dead then no question of interest or principal arises. If they want to recover they need to file a suit for the same which they will never do
Hello,
Give them a legal notice asking them to settle the matter with 23000/- and interest from the date they received the intimation about the death , otherwise legal action will be taken.
Regards
Since the money owed to thr credit card bank was unsecured loan, on death of the borrower thd money has gone away.
Had the bank filed the suit for recovery of money and decree of money was obtained during the lifetime of the borrower then his property could have been attached.
Now such money can never be recovered even if the Bills keep coming .
1. The legal heirs of the deceased are liable to make payment of the outstanding amount, but at the moment just ignored the bills and let the credit card company take some legal initiative to recover the amount,
2. during the recovery process the same can be settled for a meagre amount,
3. the limitation for recovery is three years,
If he has certain assets in the form of savings shares etc. You should negotiate with the bank authorities and pay them.
1. Legal heirs have to pay the debt upto the extent of amount or value of property received from father.
2. After demise the company cannot add charges and interest so they are wrongly sending same . Give a legal notice to company for same , in case company file a suit for recovery contest same.
if you are the legal heir of Mr. NKP and get some property or money by way of inheritance then you have to pay that amount only till the extend you get from him not otherwise.
if he left nothing then no need to worry, you are safe from any action taken by that company as per section 50 of CPC.
50. Legal representative.
(1) Where a judgment-debtor dies before the decree has been fully satisfied, the holder of the decree may apply to the Court which passed it to execute the same against the legal representative of the deceased.
(2) Where the decree is executed against such legal representative, he shall be liable only to the extent of the property of the deceased which has come to his hands and has not been duly disposed of; and, for the purpose of ascertaining such liability, the Court executing the decree may, of its own motion or on the application of the decree-holder, compel such legal representative to produce such accounts as it thinks fit.
Feel Free to Call
If the legal heirs has been inherited the property (Movable or non movables property ) of deceased person, then they are liable to pay deceased persons debt. Other wise don't bothered about his debt.
In your case you have to options
1 Not take any steps on their)bank) demands . If they need money they will realise as per civil law.
2. Pay the amount Rs. 23000+ Interest for that purpose approach the bank directly and settle debt directly.
Don't do anything.
Let them keep sending the bills.
After that let them approach court also for this.
Since it is a personal loan and there are no liabilities over this to his legal heirs, the bank cannot make any attempt to recover the same from his legal heirs.
- No, as per law, you are not liable to pay the debts of your father, because father and son`s assets/income will be treated as their respective separate properties.
- Moreover, if you got property of father both movable or immovable properties through inheritance then only, your liability to pay the debs, after selling those inherited property.
- Further, if you were a guarantor of the said credit card issuance to your father , then only you are responsible for paying the same, otherwise they cannot legally recover the said amount from you.
- Hence, no need or worry
When a deceased person leaves behind debt, like credit card bills, their estate pays off the balances..
Debts of the deceased to be paid from out of the estate of the deceased.
Thus, the said debt of CC of Mr. NKP has to be paid by his Legal Heirs, who inherited his property to the tune of his / her share.
Check the balance due amount as on date of intimation of death of Mr. NKP to Bank and get it settled after seeking removing the charges.
If the bank insists for entire amount of 51,000/- then you can lodge complaint with the Bank's Ombudsman by showing your readiness to pay the principal amount as date of intimation of death to bank, and that, you can also lodge complaint with police for harassment by banks collection agents
1. How are you related to NKP?
2. His heirs are not liable to repay his debts unless they have inherited any property from him.
1. Legal heirs of credit card holder are liable to clear all the debts taken by him if they inherit the assets from deceased after his death.
2. Legal heir should contact credit card company and tell them to take 23000 which were due at time of death if they refuse to clear the debt and close the card then ask them to proceed legally.
3. If they approach court even then they will settle the amount on initial dues.
1. Does NKP has any legal heir who has acquired movable and/or immovable property of NKP worth more than the outstanding mount standing in the name of NKP?
2. If yes, then the said legal heir of NKP is liable to clear the outstanding of NKP up to the amount which he has inherited from NKP.
3. So. his relative/legal heir shall have to send a letter to the Credit Card department of the said Bank under copy to its Zonal Manager and General Manager asking them not to send the outstanding credit card bill to the given address of NKP who has already died.
