Imagine how you would feel if your spouse, parent, or other close relative passed away. Now, imagine that shortly after their death you begin receiving phone calls from debt collectors multiple times a day, asking you to pay their debts. You may think that this could not possibly happen, that collection agencies are not allowed to do that. Unfortunately, creditors and the debt collection agencies that represent them can and do pursue collection of the debts of the deceased from their survivors.
This practice is very upsetting for a number of reasons. First, the survivors do not have a legal obligation to pay for the debts of their deceased relatives, unless they had co signed for the debt. The debt collection agencies coach their employees to tell the survivors that they have a moral obligation to pay the debts that their loved ones left behind. Collectors call frequently, sometimes multiple times a day, hoping to obtain a promise of payment of some or all of the debt in exchange for stopping the collection calls. Unfortunately, this tactic is quite successful because the survivors are often vulnerable and overwhelmed by taking care of the affairs of the deceased. Making a payment, even if one truly can not afford it, often seems worth it just to make the calls stop.
With the economy the way that it has been lately, more and more Americans are dying in debt. The rate of collections on the debts of deceased individuals is also on the rise. Debt collectors that recover payments for their clients from survivors of deceased debtors stand to profit handsomely, keeping about double what they would earn by collecting the debts of living debtors. The tactics that they employ are despicable, from misleading survivors and convincing them that they are responsible for the debts to asking for life insurance proceeds, and even relentlessly scouring death records and obituaries to find new dead debtors to pursue. Mourners may even receive collection letters disguised as sympathy cards. If you lose a loved one and are contacted about paying their debts, think twice (or more) before writing a check or making a promise. You may want to talk to a lawyer about what your rights are and how you can make the calls stop.
Photo by click on morguefile.com.