Sunday, March 08, 2009
COLLECTING FROM THE DEAD--"NEWEST FRONTIER IN DEBT COLLECTION"
In an earlier post we noted the fact that MANY SOUTH CAROLINA "DEADBEATS" ARE JUST "DEAD." And now The New York Times reports in You’re Dead? That Won’t Stop the Debt Collector:
In an earlier post we noted the fact that MANY SOUTH CAROLINA "DEADBEATS" ARE JUST "DEAD." And now The New York Times reports in You’re Dead? That Won’t Stop the Debt Collector:
No one should be surprised by the fact that lawyers have no compunctions against using trickery and deception to collect debts from people who are not obligated to pay those debts. Remember, lawyers have had no problem forcing men to pay child support for children who are not their biological children in numerous States including Maine, and Pennsylvania. So we can probably expect the families of some decedents to be forced to pay support for children who are not the biological offspring of some decedents. That process will then become the "newest frontier in debt collection."Dead people are the newest frontier in debt collecting, and one of the healthiest parts of the industry. Those who dun the living say that people are so scared and so broke it is difficult to get them to cough up even token payments.Collecting from the dead, however, is expanding. Improved database technology is making it easier to discover when estates are opened in the country’s 3,000 probate courts, giving collectors an opportunity to file timely claims. But if there is no formal estate and thus nothing to file against, the human touch comes into play.
You get to be the person who cares,” the training manager, Autumn Boomgaarden, told a class of four new hires.
For some relatives, paying is pragmatic. The law varies from state to state, but generally survivors are not required to pay a dead relative’s bills from their own assets. In theory, however, collection agencies could go after any property inherited from the deceased.
But sentiment also plays a large role, the agencies say. 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.
“In times of illness and death, the hierarchy of debts is adjusted,” said Michael Ginsberg of Kaulkin Ginsberg, a consulting company to the debt collection industry. “We do our best to make sure our doctor is paid, because we might need him again. And we want the dead to rest easy, knowing their obligations are taken care of.”
Finally, of course, some of those who pay a dead relative’s debts are unaware they may have no legal obligation.
Scott Weltman of Weltman, Weinberg & Reis, a Cleveland law firm that performs deceased collections, says that if family members ask, “we definitely tell them” they have no legal obligation to pay. “But is it disclosed upfront — ‘Mr. Smith, you definitely don’t owe the money’? It’s not that blunt.”
Labels: Child Support
