CHESSNOID

I received a comment from my blog post American Express stories 8-11-08 from Ms. S:

WOW!! I thought I was the only person who had problems with Am/Ex.
First I want to start by saying my husband passed away and I immediately called the company to inform them of his death. They cancelled the account’s and told me I had to continue to make the payments until it was paid of in full. I inquired how do I open up my own account. I was told by the representative I had to get the balance below $5,000 so, I immediatey sent them a check for $2,700. After I didn’t hear from them within 3 weeks I called them back then I was told I had to pay the balance off in full in addition to his Optima. I paid Am/Ex $9,700 in total to pay of Gold and Optima account. Long story short I found out after the fact from a Am/Ex representative I did not have to pay my deceased husbands accounts off because, I was not the account holder - I was only a authorizer user! They took advantage of a grieving widow. Now that I have my own Am/Ex account I had a limit of $15,000 and they lowered it to $7,000 and took away my revolving. I called to inquire and I was told due to negative information on my credit report. My credit report does not have anything negative. We/I had been a member for 16 years and NEVER missed a payment and ALWAYS paid more than what was due. I closed my accounts and told them to take the money I paid on my deceased husband account’s and transfer the payments to my account. They told me it isn’t nothing they can do about it now?!? I still get upset about this.

This is a common occurrence that happens in the credit world. A spouse passes away and the other spouse automatically pays the debt off whether they are legally obligated to or not. Most people don’t know the nuances with the way credit card vesting works. I don’t know if the credit card laws are consistent from state to state.

Again, I live in the community property state of California but I do keep my credit cards separate from Mrs. Chessnoid’s accounts. What that literally means is I open up my credit cards in an “Individual” status and add her on as an authorized user.  If I pass away, then she is not held liable for the balance. However, if I had opened the account with her “Jointly” then she is equally liable for the debt even after my death. I don’t think most couples don’t open their accounts up this way after they are married, but usually individuals will have credit cards before they get married and add the new person on after.

Anyways, I have told my wife if I pass away to not pay any of my cards but to make copies of my death certificate and send them to all my credit accounts (credit cards, personal loans, retail accounts, etc.).  That way credit card companies don’t take advantage of her while she is greiving.