Debt Collectors going after the dead's relatives

[AllentownJake]

http://www.nytimes.com/2009/03/04/business/04dead.html?_r=1&hp

This is absolutely disgusting and there should be a class action suit. If you die and there are no claims filed against your estate than you have no obligation to pay debt. This is a fundamental reason why this country was founded as Parents cannot pass debts to their children and vice versa.

[Renew Deal]

1. Someone here got one of these calls a few weeks ago

And posted about it.

[hobbit709]

2. "When the ship lifts, all debts are paid" R.A.H.

[Rob H.]

3. A local company tried this with my parents 20 years ago

It was about a week after my older brother (and only sibling) had been killed in a car wreck. The jeweler from whom he'd bought his fiancee's engagement ring called to collect on the debt, but my brother had borrowed the money on his own without a co-signer on the loan and, since he was a poor college student, left no estate.

My mom tried to explain all that to the woman who worked at the jeweler's, but she said, "I don't care. We just want the money." My mom broke down at that point and I had to run outside to try to drag my dad back into the house before he got to the car and drove down to their store and told them exactly what they could do with it.

Years later, when my parents went to borrow money to buy a house, they were told that their credit rating was much lower than they knew it should have been. Turns out that somehow that store got my brother's bad debt put on my parents' credit history. At that point they called the jeweler and told them that if they didn't take the debt off right that fucking second, they were going to hire a lawyer and sue their asses clean off. It was taken care of by end of business that day.

The jeweler went out of business a couple of years later. :)

[Confusious]

4. You did the right thing stopping your dad

But in the interest of Justice, its to bad you couldn't let him go and not have him end up jail.

That kind of greedy bullshit and this bullshit pisses me off to no end.

[Rob H.]

10. It was hard for me to do in more ways than one

I think now I have an idea what people really mean when they use the phrase, "driven mad with grief."

He took my brother Rich's death really hard and had nightmares for months afterward because he had to identify him after the accident that claimed his life. I was at least as afraid for my dad as I was for the jeweler--I've never seen such raw despair as I saw on my parents' faces in the days that followed Rich's death and hope to never see it again.

Part of me also wanted to go with my dad and dole out some righteous anger to the people who'd made my mother break down by being so callous. Telling a mother "I don't care" days after the death of her child is begging for a beatdown of legendary proportions, imo. That was the most heartless thing I've ever experienced first-hand.

[PM Martin]

6. How the H**l did the jeweler do that?

How can you be liable for a relatives debt? :argh:

[AllentownJake]

7. Anyone can put something on your credit report

It's up for you to review it and take things off you disagree with.

[PM Martin]

8. Why is this allowed?

There needs to be reform to the system.

[AllentownJake]

12. There was reform

The opposite way. Thanks Joe Biden and Delaware!

[SharonAnn]

9. And they tried this with us in 2002 when my stepson died. Fortunately, we knew

that we were not obligated. My stepson died at 41 years of age from a heart attack. totally shocking and unexpected. Whenever my husband got a call about his son's debts, he would get emotional and I would grab the phone and talk to the people. I usually closed with "And don't ever contact us again. This is your problem. You take care of it."

My stepson left about $20,000 in various credit card debts. And, though his mortgage payments were up to date, he had no significant equity in his house.

[Lex]

5. Debts are not inheritable.

Unless you sign for the debt as a guarantor or co-borrower, you as a relative are not responsible to pay off a debt.

I've seen that question come up a lot lately.

[southasiawatch]

11. remember

One you lock the target.
Two you bait the line.
Three you slowly spread the net.
And four you catch the man!