Sadly, Unscrupulous Debt Collectors Prey on the Dead
Generally, you are NOT responsible for the debts of the deceased
Jed Sorokin-Altmann is an Associate at Berklaw who specializes in consumer protection. He provides insightful and helpful tips to vulnerable consumers who are too often preyed upon by professional con artists and even reputable corporations. Jed's message is thoughtful and concrete. We welcome his new voice.
Let's say the phone rings, and it's a debt collector saying that you aren't the debtor, you are not responsible for the debt, but because they can't collect from the debtor, would you mind being a sport and paying off the debt for them? Unless you're the softest touch around, you'd say no, if not issuing a few choice four letter words at the audacity of the request before slamming down the phone. And yet there is a segment of the debt collection market that specializes in just this sort of behavior by preying on the grieving relatives of those who have died.
Now, these debt collectors don't tell the families that they are not responsible for the debt, although they claim that if asked, they don't lie about it. According to David Streitfeld's New York Times article "You're Dead? That Won't Stop the Debt Collector" from March 3, 2009, collecting from the dead involves training in "empathic active listening," mixing "the comforting air of a funeral director with the nonjudgmental tones of a friend."
Here's what you need to know: the law on this varies from state to state, so, if you are in this sort of situation, you should consult with an attorney licensed in your state, but generally speaking, relatives are not required to pay a deceased relatives' debts from their own personal funds. Property and money inherited from the deceased is theoretically fair game, but beyond that, generally, you are NOT responsible for the debts of the deceased.
Even though you are not responsible for the debt, some collection agencies specialize in getting you to pay anyway. According to Streitfeld's article, "Some relatives are loyal to the credit card or bank in question. Some feel a strong sense of morality, that all debts should be paid. Most of all, people feel they are honoring the wishes of their loved ones." Collection agencies train their employees to play on all of these sentiments to try convincing people to pay debts that they have no obligation to pay. Some even hire grief counselors to work the phones.
The bottom line: when a loved one passes away, be wary of creditors asking you to pay for their debts. Instead of giving money to those who prey upon the bereaved, perhaps a donation to your loved one's favorite charity is a better way to honor their memory.
Assisted by: Jed Sorokin-Altmann
Steven N. Berk has over twenty years of litigation experience spanning both the private and public sectors. His practice ranges from representing Fortune 500 Companies, to consumers. Steven is based in Washington, D.C. and founded Berk Law in May 2009....
