– 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

They would be billed as per terms of the agreements. Once the company is made officially aware the charge can be transferred to the persons estate or a family member or friend depending on what the debt is for.