Dying in Debt: Information for Bereaved Families

As millions of U.S. consumers struggle to keep up with loan payments and credit-card debt amid historic unemployment levels, bill collectors face a daunting challenge. (The old adage “you can’t squeeze blood from a turnip” comes to mind.) As the recession wears on, deadbeats aren’t the only ones bill collectors are focusing on; in fact, even death won’t stop the collection calls and letters from coming in.

Kinder, gentler bill collectors
DCM Services of Minneapolis is a collection agency that works exclusively on deceased accounts, according to the company’s website. Abandoning the aggression and intimidation often associated with collection agencies, DCM Services trains its staff to use empathic listening and effective communication techniques to recover payments from bereaved survivors. Agencies like DCM Services are often successful in collecting from survivors, largely due to goodwill and a desire on the part of the family to “do the right thing.”

In most states, under most circumstances, a survivor has no legal obligation to pay the debts of a deceased spouse, parent or child. A reputable agency won’t deliberately mislead survivors, but the agency is under no obligation to tell the family they don’t have to pay. And not all collection calls come from legitimate, reputable agencies.

Scam alert: preying on the bereaved
In Mississippi, scam artists posing as bill collectors recently tried to strong-arm grieving families into paying non-existent debts on behalf of their deceased loved ones. This wave of fraudulent collection attempts resulted in several calls to the Better Business Bureau of Mississippi; in 2002, a similar scam targeted families in at least 14 states.

Should you receive a call from someone seeking payment on a debt owed by a deceased loved one, remember:

• If you haven’t been a cosigner on credit accounts with the deceased, you are not obligated to pay. If you’re unsure of your obligation, talk to a lawyer.
• Get the name, address and telephone number of the collection agency, and check with the Better Business Bureau to make sure the company is legitimate.
• Ask the caller to provide written proof of the debt – who is the creditor, how much is owed, and why the caller is turning to you for payment.
• Do not give the caller your Social Security or bank account numbers or other personal information. If the debt is legitimate, the creditor should follow proper court procedures to file a claim against the deceased’s estate.
• If you can’t verify the identity of the caller, or if you’ve fallen victim to a scam, contact your state’s attorney general.