FTC Finalized Policy on Debt Collecting for the Deceased
The FTC recently announced its stance on the Fair Debt Collection Practices Act. The July 2011, announcement came in response to the implications of debt collection agencies, and confusion surrounding debt collections for the deceased, and their family members. Debt collection agencies are known for implementing shady tactics in order to achieve their ultimate goal—collecting on a debt.
The FTC released a statement to aid the Fair Debt Collection Practices Act, and to clarify what is allowed and what is not allowed under the policy:
"The agency will not take enforcement action under the Fair Debt Collection Practices Act or the FTC Act against companies that are attempting to collect the debts of deceased consumers, if the companies communicate with someone who is authorized to pay debts from the estate of the deceased," states the FTC clarification of the Fair Debt Collection Practices Act (FDCPA).
"Debt collectors may not mislead relatives to believe that they are personally liable for a deceased consumer's debts, or use other deceptive or abusive tactics," states a report issued by the FTC about the clarifications to the policy. The clarification of the FDCPA also includes various aspects of communication with the family of the deceased.
While family members are not usually held accountable for the debts of deceased relatives, when it comes to the personal assets of the living family members, "The FDCPA limits whom the debt collectors may contact … the deceased person's spouse and the executor or administrator of the deceased person's estate."
The new policy clarification explains that, "the agency will not take law enforcement action under the FDCPA if a debt collector communicates about a deceased person's debts with that person's spouse, the executor or administrator of the deceased person's estate, or anyone else who is authorized to pay the debts from assets in the estate."
The clarified policy statement from the FTC also specifies the following concerning debts of the deceased:
[The policy] describes how debt collectors may communicate with family members and others to locate someone who is authorized to pay the deceased person's debts from the estate, and specifies that collectors may not mislead individuals into believing that they have the authority to pay the decedent's debts when they do not.
[The policy] specifies that, in seeking to locate someone who is authorized to pay the deceased person's debts from the estate, collectors may not reveal or refer to the debts, but may say they wish to discuss payment of the deceased person's bills.
[The policy] states that in keeping with the FDCPA's prohibition on unfair, deceptive, or abusive collection practices, debt collectors may not contact family members and others at unusual or inconvenient times or places.
[The policy] emphasizes that, in communicating with someone who is authorized to pay the debts from assets of the deceased person's estate, collectors must avoid creating the misleading impression that the individual is personally liable or could be required to pay using his or her own assets, or assets held jointly with the deceased person.
The FTC policy clarification helps to simplify the rights that debtors have in regards to debt collectors and their sometimes shady tactics. If you or a loved one is suffering from collections calls, learn how to stop collection calls. You have a right to privacy. Learn your rights under the fair debt collection act.
The FTC released a statement to aid the Fair Debt Collection Practices Act, and to clarify what is allowed and what is not allowed under the policy:
"The agency will not take enforcement action under the Fair Debt Collection Practices Act or the FTC Act against companies that are attempting to collect the debts of deceased consumers, if the companies communicate with someone who is authorized to pay debts from the estate of the deceased," states the FTC clarification of the Fair Debt Collection Practices Act (FDCPA).
"Debt collectors may not mislead relatives to believe that they are personally liable for a deceased consumer's debts, or use other deceptive or abusive tactics," states a report issued by the FTC about the clarifications to the policy. The clarification of the FDCPA also includes various aspects of communication with the family of the deceased.
While family members are not usually held accountable for the debts of deceased relatives, when it comes to the personal assets of the living family members, "The FDCPA limits whom the debt collectors may contact … the deceased person's spouse and the executor or administrator of the deceased person's estate."
The new policy clarification explains that, "the agency will not take law enforcement action under the FDCPA if a debt collector communicates about a deceased person's debts with that person's spouse, the executor or administrator of the deceased person's estate, or anyone else who is authorized to pay the debts from assets in the estate."
The clarified policy statement from the FTC also specifies the following concerning debts of the deceased:
[The policy] describes how debt collectors may communicate with family members and others to locate someone who is authorized to pay the deceased person's debts from the estate, and specifies that collectors may not mislead individuals into believing that they have the authority to pay the decedent's debts when they do not.
[The policy] specifies that, in seeking to locate someone who is authorized to pay the deceased person's debts from the estate, collectors may not reveal or refer to the debts, but may say they wish to discuss payment of the deceased person's bills.
[The policy] states that in keeping with the FDCPA's prohibition on unfair, deceptive, or abusive collection practices, debt collectors may not contact family members and others at unusual or inconvenient times or places.
[The policy] emphasizes that, in communicating with someone who is authorized to pay the debts from assets of the deceased person's estate, collectors must avoid creating the misleading impression that the individual is personally liable or could be required to pay using his or her own assets, or assets held jointly with the deceased person.
The FTC policy clarification helps to simplify the rights that debtors have in regards to debt collectors and their sometimes shady tactics. If you or a loved one is suffering from collections calls, learn how to stop collection calls. You have a right to privacy. Learn your rights under the fair debt collection act.
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