What about the credit bureau and the debts of a person who dies


This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

The credit history is a report that collects the behavior of people as payers or not, if they requested any credit during their life. In Mexico there are two Credit Information Societies (SIC), the Credit Bureau and the Credit Circle , which are the only ones authorized to monitor our history. However, one of the main concerns for the family of a deceased person is what will happen to the debts left by this person, especially those associated with credit cards and loans.

Anton Darius | @theSollers vía Unsplash

Although each bank establishes a different process in the event of the death of its clients, the Coru.com financial services platform provides guidance on the general steps that must be known.

Cancel the credit cards of a deceased

In principle, it is important to know that financial institutions are obliged to cancel a credit card when the holder dies, in addition to eliminating the debt. In the case of departmental cards, they do not necessarily eliminate debt.

A debt generally disappears for two reasons: 1) the cardholder acquires insurance at the time of contracting the card that covers the debt in the event of death; 2) the bank forgives the debt on the credit line when the holder dies.

In both scenarios, the family members do not have the obligation to cover the debt that was in the account at the time of death, but they do have to notify the death of the person in the following 180 days.

In the event that there are charges after death, they must be paid, this applies to both the cardholder and additional cards.

What about the debts and credit bureau of someone from a deceased?

Since we started a credit life, all our activity is included in the monthly report of the Bureau or the Credit Circle.

When a cardholder or debtor dies, the bank or finance company issues a notice to the Credit Bureau, and this, in turn, puts an ‘observation key’ in that person’s record so that the information is not misused, for example, in the case of identity theft.

When the debts of the dead affect the living

In the case of joint loans with endorsement, joint obligor, group loan or similar, the debt will appear on the credit history of all those who are co-owners and jointly responsible for the payment, as explained to Coru.com, Wolfgang Erhardt Varela, spokesman for the Bureau of Credit. This means that when someone dies, and was a bad payer, the negative history will be reflected in all the co-owners of that credit.

On the other hand, if the credit that the person had in life is for an asset that can be inherited, the credit agreement can affect, for better or for worse, the heir.

The main recommendation is to know in advance the contracts in the section of death insurance, also called Release of balances due to death , Regime of balance due to death , Insurance on balances or Release of unpaid balance.

In addition, if you have remarried and / or changed legal beneficiaries, it is necessary to update the data in the corresponding banks and credit institutions, so that the debt does not pass to people with whom you no longer have a relationship.



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