Additional cardholders: What happens when someone passes away

That’s why people take out life insurance and make wills. They help ensure that your family and loved ones will be looked after if you’re not there. Having a plan in place also means they have less to worry about at a very challenging time.  

One of the most important things to think about is your finances. And if you have a credit card with one or more additional cardholders, it’s important that all cardholders understand what happens if you pass away.

It’s important to understand that at ANZ, we no longer offer ‘joint’ credit cards in the same way as you can have a joint bank account or joint home loan. Credit cards are now issued individually, in the name of one cardholder only. That person is called the primary cardholder.

In some cases, we provide additional cards, which are linked to the primary cardholder’s account. This might be for spouses, partners or family members who might not qualify for a credit card of their own, or partners who want the simplicity of having one credit card account that both people can use. But while there may be more than one card there is only one account, which is in the name of the primary cardholder. The primary cardholder is liable for any outstanding balance on the card.

Some customers still have joint credit card accounts from when we offered them in the past. This is where there are two or more primary cardholders on the same account, who are each liable for any outstanding balance by themselves and together with the other cardholders.

Below, we explain what happens when a joint or additional cardholder passes away. The process is slightly different depending on whether it’s a joint or additional card. If you’re not sure what type of card you have, simply call us on 0800 269 296.

To explain this, it’s useful to understand how credit cards are issued.

Before we can issue a personal credit card to anyone, we’re required to make sure they can manage their repayments without getting into financial difficulty. This affordability assessment is part of our responsible lending obligations under the Credit Contracts and Consumer Finance Act (CCCFA).

We only assess affordability for the person applying for the card. What this means is that:

• If the primary cardholder passes away, we will cancel all credit cards on the account. This means the additional cardholder will not be able to use it e.g. make purchases or automatic payments using their card.
  
  
• If the additional cardholder wants to retain a credit card account, we’re required to assess whether they can manage the repayments on their own without getting into financial difficulty.
  In this case, we will carry out an affordability assessment for the additional cardholder. Based on the assessment, we may then be able to offer them a card in their own name. The assessment will also identify whether a different card or credit limit may be more appropriate for their situation.
  Depending on the assessment, any remaining balance may be transferred to a new card or may need to be repaid.
  
  
• If the additional cardholder passes away, we’ll cancel their card and the primary cardholder can continue using the account.

• If a joint cardholder passes away, and the remaining cardholder(s) want to retain the credit card account, we’re required to assess whether they can manage the repayments on their own without getting into financial difficulty. Based on the assessment, we may then be able to offer the remaining cardholder(s) a card in their own name (this will no longer be a joint credit card). The assessment will also identify whether a different card or credit limit may be more appropriate for their situation.
  
  
• If our assessment determines that the remaining cardholder(s) are unable to afford a credit card in their own name, we will cancel the existing joint credit cards and any remaining balance will need to be repaid before we close the account. We are happy to work through available options to come up with a suitable repayment plan, please contact us to discuss further.

The loss of a loved one can bring many challenges, but having your finances organised can mean one less thing to worry about.

As hard and uncomfortable as it might be, you may want to consider having a conversation with your partner or family about what happens if one of you passes away – just in case.

If you’ve recently lost a friend or family member and need help sorting out their finances, we have more information on what to do on our Deceased estates page.

If you, or someone you know, is experiencing financial difficulties we may also be able provide financial hardship assistance. Check out our Financial hardship assistance page to see how we could help you through difficult times.