Business

FTC Issues Final Policy Statement Regarding Collecting Deceased Debt

Comments Off on FTC Issues Final Policy Statement Regarding Collecting Deceased Debt 27 July 2011

The Federal Trade Commission has finalized a policy statement saying that the agency will not take enforcement action under the Fair Debt Collection Practices Act (FDCPA) 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.

The policy statement also emphasizes that 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. Family members typically are not obligated to pay the debts of a deceased relative from their own assets. The FDCPA limits whom debt collectors may contact after a loved one has died to people such as the deceased person’s spouse and the executor or administrator of the deceased person’s estate.

Since the FDCPA was enacted in 1977, state probate laws have changed, and now, less formal procedures often govern the appointment or selection of those who are responsible for the disposition of the estate. In many cases, there may be no formal executor or administrator of an estate. In the enforcement policy statement, the Commission wants to reconcile the FDCPA’s requirements with current trends in state probate law.

In keeping with the FTC’s October 2010 proposed policy statement, the final policy statement specifies 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 final policy statement also 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 can’t mislead individuals into believing that they have the authority to pay the decedent’s debts when they don’t.

It also 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 might say they want to discuss payment of the deceased person’s bills. Also, in keeping with the FDCPA’s prohibition on unfair, deceptive, or abusive collection practices, debt collectors can 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 need to avoid creating the misleading impression that the individual is personally liable or could have to pay using his or her own assets, or assets held jointly with the deceased person.

im i am trying to find http://tinyurl.com/dktx98. I am searching for Collection Agency.. This article, FTC Issues Final Policy Statement Regarding Collecting Deceased Debt is released under a creative commons attribution license.

Be Sociable, Share!

Comments are closed.

© 2011 Free Online Printing Coupons | Offline Marketing | Cashback Printing. Powered by cashbackprinting.com.