By Admin 
Credit card: In today’s time, people are using credit cards on a large scale. You will definitely find two to three credit cards in the wallets kept in people’s pockets. Credit cards are also becoming popular because it is an easy way to get advanced funds quickly.
Top lenders like HDFC Bank, SBI and ICICI Bank are providing credit card facilities to customers to meet different needs. The application process for them is digital and easy. Generally, banks decide the credit card limit on the basis of the income and credit score of the borrower. With this increasing use of credit cards, have you ever wondered what happens to the outstanding amount if the card holder dies suddenly? Who compensates for this?
The burden is not placed on the family
Usually, when the credit card user dies, the bank tries to recover the dues from his property or assets. Suppose, if there is any policy or investment in the name of the deceased or any property is in his name, then the bank recovers its dues from them through legal means, but in case of their absence, no burden or pressure is put on the family of the borrower because the responsibility of repaying the credit card dues lies only with the card holder. In such a situation, if he dies under any circumstances, the loan also gets extinguished. Additionally, if the outstanding amount exceeds the value of the borrower’s assets or property, the lender considers the remaining amount as bad debt or non-performing assets (NPA).
What do RBI guidelines say?
In the guidelines of RBI, lenders have been advised not to resort to threat or harassment, whether physical or mental, against any person in an attempt to recover the loan. Which includes acts like threatening, insulting or interfering in the privacy of any member of the credit card holder’s family or his friends or references. On the other hand, in case of secured credit cards like FD-backed credit cards, the lender can recover the dues by selling the fixed deposits linked to the credit card.
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