Hi, I want to know.
In Malaysia if the card holder pass away and left a big amount of debt.
Will the bank charge the debt to their family?
Or the bank will cover up itself?
Or base on different bank?
Pls give some comments.
Thx.

I think that depends on the terms and conditions signed in the application form. You may need to consult the bank directly on this matter.

the bank has the right to get back the amount owing (i.e. liability) from the estate of the deceased; in the event if the estate is 0, the family members are not responsible at all....

Islamic cards have takaful protection, so debt will be gone with death.

wow! if that's the case then Islamic cc's are really quite attractive.

taken from the card holders related savings, eg. KWSP etc, the balance forfeited, and it does not affect family members. Other than that "Syd G" already explained

Actually they are. But in Maybank's case, credit limit tend to be on the lower side.

I had a 1k limit on my Islamic card and 5k limit on my conventional card. Had to cancel the Islamic card due to RM50 tax.

Died already then attractive?

What about if principal holder dies, is the sub-card holder liable for the principal holder's debt?

This post has been edited by DarkNite: Sep 12 2010, 04:40 PM

... my cousin passed away last year

The bank send lawyer letter for authorization to withdraw from her EPF .After that it happened very fast and got settled .

before this i tot the balance will be forfeited but then again .. its A BANK!! .They will take money but never give back .

if can don't use credit card, but not everyone can follow this right

Oic.
Thx for all ur comment.
I thought their immediate family will have to take up the debt.

Hmm can it be that's one of the reasons why banks ask for your EPF contribution statement upon applying for credit card?

family members dont have any responsibility on the debt.
regarding epf, i know someone who get his epf without paying single cent back to bank.


just dont over use and pay on time, then no need to worry about it.

buy non affordable to show off, but your life are totally off if you cant pay it back.

If you die and your family don't want to pay, then get yourself the CC insurance. Most bank offer this facility. Covers up to RM100K. You only pay the premium if you got balance in your CC monthly.

Better still, dont carry a balance. Pay off asap so that if you die anytime, nobody's gonna be burdened

No, the bank is not allowed to "ask" the family member to pay on behalf of the deceased. They may however collect from the "assets" left behind, like for instance the EPF example above; but it's going to be a hassle and long procedure. So if the amount is not big; the bank are most likely to "write it off" their book as losses then pursuing the action.

That being said, if there's a supplementary card being offered and spent; there's loop holes in the law and T&C where the bank has the right to claim from the supp card holder.

p/s: if the bank "harass" the deceased's family to collect debts; one may report the case to BNM.

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Added on September 15, 2010, 5:04 pmNo. EPF upon application is just a proof of steady income. Also, by calculating backward on the monthly EPF contribution, your salary would be known. Thus it verifies your income stated on the form.


This post has been edited by b00n: Sep 15 2010, 05:04 PM

only 1k limit????

my previous islamic cc got 8k limit, just like other conventional cc

how about wife? still can rite

Wow... if balance on the Islamic card is written off upon death... then it might be a good idea to go on a spending spree during the last days of the cardholders' life.

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Added on March 20, 2011, 4:25 pmHow much is the premium as a percentage of the outstanding balance? If the balance on the card is RM10,000 then how much premium have to pay for that month?

This post has been edited by simplesmile: Mar 20 2011, 04:25 PM

If the deceased died without a Will and have money in the Account, I would advice not to inform the Bank until you have taken out the money.

if you have ATM Card, better you take out all the Cash and then only inform the Bank

After you have taken out the Cash, you need to inform the Bank that issued the Credit Card of your FIL Death by giving a copy of the Death Cert and ask the Bank to immediately Cancel the Cards.

Ask the Bank to charging any more additional charges / interest until the financial affairs are sorted out.

Then does your FIL have any surplus estate / Assets

Banks cannot sue a Dead Person but they can sue the Estate or the Admnistrator of the Estate

Do you have any Lawyer friends who can help you or perhaps your Insurance Agent who can give detailed advice.The position of the Law is that you can only bequeath Assets and not Liabilities.

So for Loans, unless any of the beneficiary was a Joint Borrower, no other person will be liable for it.

But as the Property was charged, the Bank will need to be repaid. Hence, either the Housing Loan must be settled or the Bank will auction of the Property with the Balance of the proceeds after netting of the Principal Sum to be distributed to the beneficiaries.

By Right, the Administrator is suppose to settle all liabilities before distributing the surplus assets. This includes paying off all other liabioities of the deceased such as Taxes, CC, etc.

The Creditors can take action against the Administrator only and not the beneficiary.

FYI, Insurance monies are excluded from this and can be paid directly to the Beneficiary without any set-off of Liabilities due to Lenders / Creditors

I believe EPF Monies can also be paid directly to Beneficiary without set off of loans ourstanding.

Pls could someone advise is above information still apply?

My relative just passed away. He has epf and owns a house (fully settled) but owe some credit card debts.

Will the banks sell off the house to get back the debt from credit cards?