I hope you can help.
My Mother in law passed away with no assets, about €5k in her bank and credit card debt of €3k. We notified the bank and her accounts were frozen. We now contacted the bank to finalise everything and close the account. We were of the understanding that the first people to be paid would be the funeral home. The bill is about €4.5k. Today we discovered the Credit card company have accessed the account and taken the €3k.
My question is are they allowed do this if the funeral home hand’t been paid. Her card and bank are the same provider but there was no direct debit agreement.
Hi Martina, This is slightly more of a legal issue than a financial one. Usually when someone passes, the first
thing to happen from the estate is debts are cleared. My understanding is that there is no automatic preference
as to paying funeral directors ahead of other debts. Some card companies may have an add on (usually paid for)
that clears the balance in the event of death but it is not an automatic thing. The point to clarify in this case,
is whether the terms and conditions of the card gave them permission to debit the balance in the event of death. I
would be asking the card company to provide evidence if they claim that is the case. If they cannot, or if they
have acted inappropriately, then it might be time to talk to a solicitor. I hope that is of some help to you.