Money
Death & The Debt Collector
By Elizabeth Manresa
Did You Know?
If you only paid the minimum on a $2,000 credit card balance that carried an 18% APR, it would take you until 2033 to pay it off.
Source: Consumer Reports Magazine
Losing a loved one is painful enough but unexpected heartache could arise in the form of harassing calls from debt collectors. After a relative dies many people incorrectly assume they’re responsible for the debt left behind. And some unscrupulous debt collectors are counting on it.
According to the Federal Trade Commission, a surviving relative who was not your spouse usually has no legal obligation to pay the debts of a deceased family member. Even if you are the spouse, your obligation may be limited under state probate law. To determine your spousal obligations, talk to an attorney who specializes in this area of law.
What should you do if a debt collector is calling?
- Don’t give any of your personal information like your Social Security number. There are scam artists who scour the obits looking for targets
- Give the debt collector the contact information for the administrator of the decedent’s estate or executor of the will
- You can stop collection calls by sending the agency a certified letter asking them to stop. Be sure to pay for a “return receipt.” Don’t forget to make a copy of the letter.
What do you do if you have problems with a debt collector?
- Report problems to your state Attorney General’s office www.naa.org
- File a complaint with the Federal Trade Commission at www.ftc.gov or call 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261
- Know your rights. Go to www.ftc.gov/credit to see Debt Collection FAQs: A Guide for Consumers