Topic RSS4:28 am
August 5, 2022
OfflineDoes interest continue to be charged on a line of credit and on a credit card after death? Recently I was advised by the bank representative at the branch and the person at the funeral home that deal with the estate issues that interest ceases upon death. I'm getting contradictory responses from the bank that has the line of credit and the credit card company which say interest continues until balance is paid in full. The only thing I could find out with some certainty is that upon death any annual fee on credit card should not be charged. I wanted to pay off balances for the deceased but bank representative and funeral home estate personnel told me not to until probate is settled since 'no interest ' is charged after death. Can anyone confirm?
9:42 am
April 6, 2013
OfflineI would say no stopping of interest. I have never seen a provision in cardholder agreements that stops the interest on the death of the cardholder.
I suspect some are confusing the creditor's sympathy (not demanding payments and threatening collection/foreclosure), while the executor is trying to get probate, with the creditor not still calculating and accruing interest as per the loan/credit card agreement.
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