Notifying the CFPB when someone dies

Generally, you are only responsible if you co-signed the debt, held a joint account, or live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, or Alaska with a written agreement). Authorized users on credit cards are typically not liable. Debts are paid from the estate, not by family members personally.

A debt collector can contact the surviving spouse, executor, or administrator to discuss the debt. However, they cannot misrepresent that you are personally responsible for a debt you did not co-sign. They must follow all Regulation F rules: no calls before 8 a.m. or after 9 p.m., no more than 7 calls in 7 days, and no false representations about the debt.

Credit card debt is paid from the estate. Joint account holders remain responsible for the balance. Authorized users are generally not liable. If the estate lacks sufficient funds to pay the debt, the credit card company may not collect from family members (unless they co-signed or live in a community property state).

Yes. Federal law (the Garn-St. Germain Act) prevents mortgage servicers from enforcing a due-on-sale clause when a property transfers due to death. Contact the servicer, provide a death certificate, and request confirmation as a successor in interest. Once confirmed, you can apply for loss mitigation options if needed.

A successor in interest is someone who receives ownership of a property through death, divorce, or family transfer. Under CFPB Regulation X (12 CFR 1024.38), mortgage servicers must recognize confirmed successors and provide them the same rights as the original borrower, including access to loss mitigation options.

Debt collectors cannot sue or threaten to sue on time-barred debts (debts where the statute of limitations has expired) under Regulation F (12 CFR 1006.26). The statute of limitations varies by state and debt type. However, creditors can file valid claims against the estate through the probate process.

Community property states treat most debts incurred during marriage as jointly owed by both spouses. The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska allows couples to opt in through a written agreement. In these states, a surviving spouse may be responsible for certain debts of the deceased.