My sister passed away in the spring, and she was young and didn’t really talk about her finances. After she passed, we notified her bank and sent them the death certificate. They closed her bank account but didn’t give us any info since none of us were on her account.
Fast forward to about three weeks ago, and my mom got a call from Discover saying they hadn’t received a payment from my sister. They weren’t very helpful and quickly hung up after we told them she’d passed. We thought that was the end of it, but then a week later, a paper bill from Discover arrived in my sister’s name at my mom’s address. I called Discover to clarify, and they apologized, saying we could disregard the bill.
Then, we received a letter from a debt collection agency representing Discover, but this time, it was addressed to my mom with “FIDUCIARY” after her name. They seem to think my mom is somehow responsible for my sister’s debt, even though Discover told us she wasn’t an authorized user and there was no estate.
We sent a certified letter back to the collection agency explaining that my mom isn’t a fiduciary or responsible for any of the debt. But they still seem to be pushing to collect on it. My sister had some automatic payments set up on her credit card, like Netflix and Spotify, so it looks like charges kept coming in after she passed. She didn’t have any assets, no big savings, no house, no insurance. She was just starting out in life.
So, what’s the next step here? Has anyone dealt with this kind of thing?
If there’s no estate, send a copy of the death certificate to Discover and the debt collector. Include a note explaining there are no assets or estate. They might keep pushing, but they can’t actually hold your mom responsible.
@San
I already sent a letter explaining there’s no estate or assets and that my mom isn’t a fiduciary or authorized user. I even confirmed with Discover that they can’t discuss account details with us because we aren’t on the account. We also sent a cease and desist letter to stop them from contacting us, but they keep sending letters.
Your mom isn’t legally obligated to pay this. If Discover wants, they could open probate to try and get assets, but that process is costly and may not even be worth it if there’s little to nothing left. They’ll probably drop it soon.
If your sister was employed, you might want to check if her employer had any life insurance or retirement plans with named beneficiaries. Banks also turn over unclaimed accounts to the state after a few years, and heirs can make a claim later if it’s worth the effort.
@Dane
Right! I doubt there was much in her account, maybe under $2k. She did have life insurance through her employer, but that’s already been handled with the named beneficiary. As far as Discover, I already informed them about her death months ago. It’s strange they waited so long to try to collect.
@Zeke
We sent cease and desist letters to both Discover and the debt collector, along with a death certificate. They haven’t contacted us since then, so hopefully, it’s done.
Toryn said: @Zeke
We sent cease and desist letters to both Discover and the debt collector, along with a death certificate. They haven’t contacted us since then, so hopefully, it’s done.
Good to hear! Some debt collectors can be really pushy. They try to guilt you when you’re already dealing with a tough time.
Lennon said:
Didn’t read all of it, but if you’re not the executor, you don’t have to deal with them. Just tell them, ‘Wrong number.’
No executor, no authorized user, nothing. We weren’t listed on anything, and Discover won’t talk to us about the account since we aren’t authorized. It’s like the debt collector just assumed my mom was responsible without any real proof.
The debt died with your sister. If there’s a little left in her account, it might be worth checking with the bank, but don’t share details with the collectors.
Your mom should be able to access the bank account as next of kin, unless your sister had a spouse or children. Banks can’t keep her money. Just take a copy of the death certificate.
As for Discover, send them a copy of the death certificate and let them know there’s no estate or money to pay them with. They can’t make you pay.
@Ren
We tried with the bank and showed them the death certificate, but they said we’d need a court-approved affidavit. At this point, it doesn’t feel worth it because there’s probably very little money there. And yeah, we already told Discover there’s no estate or executor.
Just keep sending them the death certificate and a letter explaining there’s no estate or responsible party for the debt. Certified mail is the way to go. Let them know any further contact needs to go through your lawyer (or at least make it look like it does).