How to Handle Collection Calls Over a Deceased Family Member's Debt

The last thing that a family wants to think about when they lose a loved one is what to do about the loved one's debt. When and if that time comes, however, its good to know what actions to take and what your legal rights are rather than have the anger and frustration of collection calls to handle in addition to your grief.

Instructions

1

Know your rights. Unsecured debt is usually in the form of credit cards or small loans. Unless your name was in a joint account with the deceased, you are not legally responsible for the debt. Being an "authorized user" on a family member's credit card does not make you responsible either. You MUST be either a primary or joint account holder to be held legally responsible for a debt.

2

Notify the companies your loved one had accounts with of his or her death. Call and ask what department you should send the information to. Mail off a short letter explaining that the company should write off their records pertaining to the deceased. Include a copy of the death certificate. Make sure you include a gentle reminder that it is illegal to sell a deceased person's debt to a collection agency and in the event that this occurs there will be legal repercussions from your family. Sadly, if you do not do this, almost all credit card companies will simply sell the debt off along with their other bad debts. You need to give them a good reason to take the time to write it off. Send your notifications Certified Return Receipt Requested and keep copies of both the letters and green cards you receive back. Also keep extra copies of the death certificate.

3

Be prepared for collection calls. There very likely were debts you were not aware of when you sent out your notifications. When collection calls come and you point out that the person they are trying to reach is deceased, the caller will most likely become rude with you. They are very accustomed to people having family members claim they are dead to avoid paying their debts. Don't let this rattle you. Ask for an address to send the death certificate to. Once again, follow the process of mailing items CRRR. When dealing with a collection agency, however, make sure to include in your mailing that they are no longer allowed to call your home or contact you and your grieving family in any way. Type your letter and type your signature. Unfortunately if you send an actual signature on any sort of communication to a collection agency it may very well mysteriously appear on a written agreement to pay a debt you never agreed to. Don't risk it. It does NO harm at all to use a fake name. They have no business knowing who you are and in the event that they attempt to illegally transfer the debt to you they will be unable to.

4

If the calls continue, you need to threaten to sue. You can either call or write mail concerning this but it is very illegal to call and harass someone about a debt that does not belong to them. You are very likely to hear "Well, who is going to pay this?" to which you should respond "The only person legally responsible for the debt is deceased. Please clear your records and cease contacting this family." In the event that they threaten to sue, gently remind them that they cannot legally file suit against any member of your family for a debt that does not belong to them and if they try you and your family's attorney will show up in court to combat the lawsuit and you will file a countersuit. You don't have to have an attorney, but you should claim to all the same.

5

Keep your cool. As much as it infuriates you to have to deal with something like this, remember that these collectors hear the death excuse every day. They do not believe you. Once you have sent the death certificate and Cease and Desist order you will probably never hear from them again. It just pays to be prepared for the worst.

6

Monitor your credit reports. There have been a few cases in which a collection agency illegally changed the name of the deceased individual on the account to the name of his or her nearest kin and renewed collection activity. If you use a made up name in your dealings with the collection agencies you will probably never have to worry about this. If, however, you chose to use your own name you should pull your credit report after 6 months just to make certain no one is trying to hit you for a debt that is clearly not yours.