Credit cards have become the most preferred way of payments. While they are used as convenience, it must also be understood that there is an obligation to pay the money outstanding on the credit card.
What happens when you default on a credit card?
If you begin defaulting, the bank would send you several reminders and also make phone calls. If the outstanding are really large, the bank will then take appropriate steps to recover debt on the credit card.
Small amounts the banks may really ignore. But, in the end not honoring your commitment would means that you get hit with a bad credit score. So, it is best to make timely payments.
What happens to credit card debt on death?
There have been several instances, where there has been a death in the family, and the person who has passed off has left some amounts on the credit card as outstanding.
Now, 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 of course, talk to the bank and try and resolve matters or also complaint to the banking ombudsman in case of harassment.
The bank or the financial institution in question has to file a civil suit for recovery and then the legal representative of the card holder has to make good the payment from the property of the deceased person.
You cannot have the estate of a person and not honor the debt obligations. It is like having the cake and eating it too.