In the event of job loss, critical illness, dismemberment or death ...

[Statica]

So I called to activate replacement credit cards that were expiring and the conversation towards the end turned like this:
she: I see that you have not taken the Balance protection feature on your cards
me: No thanx, I do not need it
She: Just to remind you that it protects your credit rating by making min. payments in case of job loss, critical illness, dismemberment or death, are you sure you want to refuse the offer?
me: err .. yes
She: Well thank you for calling bank_name Credit card services, and to verify we have activated your cards and you have declined protection in case of job loss, critical illness, dismemberment or death. Have a nice day...

A bit ominous, don't you think?

[Trent Steel]

This feature is interesting, I think some companies charge 2% on all purchases for this service. The one I find interesting is that they sell on that last feature, death, by stating that relatives will not have to pay the dept off. Well, relatives never had to pay your debt off, only your estate does.
Pure gravy for the credit card company.

[HAL9000]

Intresting Statica.... that's exactly what I'm taking in class right now... but we wouldn't have expressed it that way..

Originally Posted by Trent Steel This feature is interesting, I think some companies charge 2% on all purchases for this service. The one I find interesting is that they sell on that last feature, death, by stating that relatives will not have to pay the dept off. Well, relatives never had to pay your debt off, only your estate does. Pure gravy for the credit card company.

Not entirely true.... If I have an account and my wife is a secondary card holder and I die... she IS responsible for the debt.

[rightcoast]

Not to be morbid, because this has been on my mind but I don't dare ask my mom or brothers. The estate pays it off....what if you have a mom like me who is in about $80,000 in debt from credit cards? She has no estate, rents a house and drives a beater. After my step-dad passed she got his gambling debt, on top of her card debt. I assume We are the "estate" that pays this....I really should start thinking about this, my brothers never will.

I have a feeling people don't respond to your question Statica because they are afaid of the j word. Like the guy who makes the clothes called hackwear....

[HAL9000]

You are not your mom's "estate". If your dad has passed and it's just your mom left and she dies and all there is is debt... NOBODY in your family is responsible UNLESS they are named on the accounts.

[mbossman2]

Originally Posted by rightcoast Not to be morbid, because this has been on my mind but I don't dare ask my mom or brothers. The estate pays it off....what if you have a mom like me who is in about $80,000 in debt from credit cards? She has no estate, rents a house and drives a beater. After my step-dad passed she got his gambling debt, on top of her card debt. I assume We are the "estate" that pays this....I really should start thinking about this, my brothers never will. I have a feeling people don't respond to your question Statica because they are afaid of the j word. Like the guy who makes the clothes called hackwear....

an estate is not a person, it is the remaining assets and liabilities of the deceased. Unless, as has been pointed out before, you cosigned for the account or accepted some sort of financial obligation for the account you are not on the hook.

at the death of the debtor and no assets in the estate, the bank/creditor is, using a highly techinical and legally precise term, SOL.

Originally Posted by Statica She: Just to remind you that it protects your credit rating by making min. payments in case of job loss, critical illness, dismemberment or death, are you sure you want to refuse the offer? me: err .. yes She: Well thank you for calling bank_name Credit card services, and to verify we have activated your cards and you have declined protection in case of job loss, critical illness, dismemberment or death. Have a nice day... A bit ominous, don't you think?

Many banks, in an effort to protect themselves, have taken to recording card activation calls and that is why the CSR was clearly stating what you had declined. that way you couldn't come back later (or your estate) claiming that you had, in fact, wanted the coverage.

[fudtone]

As crazy as it sounds allot of people feel responsible to pay off loved ones dept.

I know a friend who's father died and the CC company's called him for a year trying to get him to "clear his fathers good name". He seriously thought he was responsible because he was embarrassed to ask anyone and they would not let him believe any different.

One day I asked him what he did with all his money and he told me this. I told him to make them sue. He followed my advice and they quit calling after some time.

Money hungry ***--**%%**..

[rightcoast]

Wow, I just know me and my brothers have been tiptoeing around this and not speaking of it. This sorta gives me the the confidence to ask an "official source" (not that your not right, I would just need more than an online confirmation to say, "we're in the clear boys!") I just feel like asking someone now that I don't have to dread the answer I would get. Gracias for the info. It's funny, when I woke up, this was the last thing I thought I would be discussing..

[jong2k4]

I was trying to open an account at a local credit union, and they required all new members to fill out a "pre-application" for a loan, so if we ever want one then there is no time to think or consider, it's there and we're saddled with debt. Anyway, a segment of the application asked me if I wanted insurance - I asked the sales rep about it, and she said something along the lines of "In the event of your death, your family will not need to pay off the debt, we'll cover it." "Isn't that true anyway" "..."

Incidentally I am planning on closing the account tomorrow if their manager does not fix things right up... through the bungling of their sales rep I encountered an overdraft fee, and she denied responsibility and said they would not cover it.

[mbossman2]

Originally Posted by fudtone I know a friend who's father died and the CC company's called him for a year trying to get him to "clear his fathers good name". He seriously thought he was responsible because he was embarrassed to ask anyone and they would not let him believe any different.

THAT sounds like a collection agency, not a bank (although the bank should not have sent this truly uncollectable account out to an agency)

[Colonel Sanders]

I'm pretty sure you don't have to pay for your dead relatives debt. My dad has claimed he wants to die and leave as much debt as possible- I certainly don't plan to pay it. Ruining his good name? Personally, I imagine he would like to have some kind of note revealing his accumulated debt placed on his headstone. The only thing that really upsets me about his plan is the fact that before my grand parents died about three years ago, they owned a quite large farm in this county which sold at an auction of price of just over 3million dolars. . .

L J

[Trent Steel]

Originally Posted by HAL9000 Not entirely true.... If I have an account and my wife is a secondary card holder and I die... she IS responsible for the debt.

True, thats a big requirement though, the family/spouses name has to be on it for them to be accountable. The credit card companies are not telling that detail to the customers they are selling that feature.

[HAL9000]

Well, I am in training as a MasterCard CSR, and in our training, we do tell them that this is why you would want this coverage.

Originally Posted by Colonel Sanders I'm pretty sure you don't have to pay for your dead relatives debt. My dad has claimed he wants to die and leave as much debt as possible- I certainly don't plan to pay it. Ruining his good name? Personally, I imagine he would like to have some kind of note revealing his accumulated debt placed on his headstone. The only thing that really upsets me about his plan is the fact that before my grand parents died about three years ago, they owned a quite large farm in this county which sold at an auction of price of just over 3million dolars. . . L J

Right.. provided that there isn't a secondary card holder or that it is a joint account, nobody is responsible for that debt. My dad had $11,000 on his VISA and $4000 on his Sears card. They both came after me for the money and threatened to damage my credit rating and take me to court. I said go right ahead because I'll be counter suing for damaging my credit rating as they have no grounds to even sniff in my direction for money. That was the last call I heard.

[fudtone]

Originally Posted by HAL9000 Well, I am in training as a MasterCard CSR, and in our training, we do tell them that this is why you would want this coverage.

Is there a recommended policy on disclosing the full details? Or are they as dirty as they seem?

What may happen you your employment status if you decided to elaborate every time when using this sales tactic?

[HAL9000]

If need be, we pull out the actual policy and read them whatever details they want. We're not doing outcall sales, just taking the opportunity to sell when they phone in. Not trying to be dirty about it.

[Byte 2.0]

hmm, I guess one could could look at it this way.

Debtor dies and there is no other co-signers and no estate then in away it would be like they declared Bankruptcy.