FTC tightens debt collections post-mortem

[Modbert]

FTC tightens debt collections post-mortem - UPI.com

WASHINGTON, Nov. 22 (UPI) -- Consumer advocates say the U.S. Federal Trade Commission has asked for trouble by revising rules for collectors chasing debt from people who have died.

The new rules allow for a wider circle of people to be contacted, beyond family members and the legal executor of the estate. There is also the term "spouse" that some advocates say is inaccurate as a marriage ends when one of the partners dies. The Washington Post reported Monday.

Some advocates warn that some debt collectors will press even friends to pay the debts of someone who has died, using a "moral obligation" argument, the Post said.

This is a terrible idea to say the least.

 

[boedicca]

It wouldn't hurt to actually read the source document before pontificating.

SUMMARY: The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
requests public comment on a proposed
statement of enforcement policy
regarding communications in
connection with collection of a
decedent’s debts.1 The statement
addresses three issues pertaining to debt
collectors who attempt to collect on the
debts of deceased debtors. First, the
proposed statement announces that the
FTC will not bring enforcement actions
for violations of Section 805(b) of the
Fair Debt Collection Practices Act
(‘‘FDCPA’’), 15 U.S.C. 1692c(b), against
collectors who, in connection with the
collection of a decedent’s debt,
communicate with a person who has
authority to pay the decedent’s debts
from the assets of the decedent’s estate.
Second, the proposed statement clarifies
how a debt collector may locate the
appropriate person with whom to
discuss the decedent’s debt. Third, the
proposed statement emphasizes to
collectors that misleading consumers
about their personal obligation to pay a
decedent’s debt is a violation of the
FDCPA and Section 5 of the Federal
Trade Commission Act (‘‘FTC Act’’), 15
U.S.C. 45.


https://ftcpublic.commentworks.com/...TC_FRDOC_0001-0407_deceaseddebtcollection.pdf


In summary, a debt collector may contact somebody who has authority over or represents the estate of a deceased about a debt owed by the deceases, and may not mislead others into thinking that they themselves are liable.