Many people in Arizona carry at least some credit card debt. Some carry the debt for just a few weeks and pay in full every month while others may carry over some of the debt and have an outstanding balance for some time. While no one likes to have excessive credit card debt, it can be a much more disagreeable situation when credit card companies attempt to collect on the debt of a loved one who has passed away.

Depending on the amount of outstanding debt, it may be useful to consider how this debt will be handled when crafting your estate plan. Generally, credit card debt does not go away when a person dies. Fortunately most often family members are not directly on the hook for paying the outstanding balance. Instead, the debt should be paid out of the decedent's estate. Furthermore, debt collectors must comply with the Fair Debt Collection Practices Act when collecting the money owed.

To help consumers who are facing collection attempts related to a person that has passed away, the Federal Trade Commission has just released a consumer alert outlining the protection designed to protect individuals from abusive or deceptive practices.

Debt collectors are only allowed to discuss the outstanding debt with the executor of the estate or certain close family members such as a child, spouse or parent of the deceased. They may only contact other individuals for the purpose of identifying the person who is authorized to pay outstanding debts from the decedent's estate. Under no circumstances though are they allowed to use deceptive or unfair practices to collect the debt.

Source: federal Trade Commission "Paying the Debts of a Deceased Relative: Who Is Responsible?" July 2011