– When someone dies, what happens to their direct debits and debts?

Question

When somebody dies, how do the companies and banks know, and what happens to their outstanding debts/payments?

For example, car insurance, direct debits for services, and what happens to outstanding balances on credit cards/loans and car financing?

In: 3

Answer 1

> direct debits for services

I think your survivor/executor will tell your bank, which will freeze your account. So any direct-debit attempts after that will fail. The services which tried to do those debits will send email or call, then cancel your service after a while.