What happens to HSBC accounts in debt?

If you need any help or guidance in dealing with debts held with HSBC or you do not think that the estate will be able to repay the borrowing in full, then please contact the Bereavement Support team as soon as possible.

If the bank does hold any credit monies these can be used towards the payment of the funeral. The bank will require the funeral invoice and the payment will be made direct to the funeral director.

Unsecured borrowing

If the overall balances of any sole HSBC accounts are in debit, the personal representative is not personally liable for the debt. However, the personal representative is legally responsible for ensuring that all outstanding debts are settled from the estate before making any payments to beneficiaries.

Sole Bank or Loan accounts

The account will be frozen and any debit interest or charges applied to the account after the date of death will be refunded. No future interest or charges will apply.

If a personal loan is held, the bank will recalculate the outstanding balance and only apply interest due from the account opening date to date of death.

If any loan protection insurance was taken out, the bank will submit a claim on behalf of the estate and if the claim is successful we will repay the outstanding borrowing on the loan, close the account and advise the personal representative.

Unless repayment insurance was taken out, any debit balances should be repaid from the monies available from the estate and this will include any credit monies held by HSBC.

Joint Bank Accounts or Loans

Once we receive the death certificate any joint account will be transferred in to the name of the surviving account holder(s). The debt then becomes the liability of the surviving account holder(s) and the account should continue to be repaid as normal.

Credit Cards including any secondary cards held

The account will be frozen and any interest or charges applied to the account after the date of death will be refunded.

If a secondary card was held by a third party this card will also be cancelled as the agreement ceases upon death of the primary card holder.

If any credit card protection insurance was taken out, the bank will submit a claim on behalf of the estate. If the claim is successful we will repay the outstanding balance on the credit card, close the account and advise the personal representative.

Unless repayment insurance was taken out, any debit balances should be repaid from the monies available from the estate and this will include any credit monies held by HSBC.

Secured borrowing

If any borrowing is secured e.g. Mortgage or Loan, the debt must be repaid from the estate before the security is released. If the borrowing is not repaid the bank can if necessary enforce its security and sell the asset(s) to repay the borrowing.

Letting us know

Call us

0800 085 1992

or +44 (0)114 252 0249 if you're calling from outside the UK

Lines are open 8:30am to 6pm, Monday to Friday and Saturdays 9am to 2pm (excluding public holidays).

General enquiries

Notify us online

You can inform us of a bereavement online.

Visit us in branch

Write to us

You can send documents to:

HSBC Bereavement Services

51 Saffron Road

Wigston

LE18 4AG 

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