Collection agency called today threatening to sue my parents.

[sao123]

there is an older lady at the church named shirley who has cancer, and will probably die soon. She has no remaining family, so my mother being the nice person she is, became the power of attourney for her. She has managed shirleys debts, and made the decisions for her healthcare.

Currently there are some bills that Shirleys estate cannot pay, but will eventually be paid when Shirleys life insurance is collected. Some collector called today 5 times and threatened to sue my mom claiming that my mom is a cosigner for all shirleys debts currently about 3K. Which is complete BS, she only has power of attourney (which legally is decision making power, but no debt responsibility). So now she has to go the attourneys office and the bank to get this cleared up.

My mom is really upset now because she has a perfect credit score, and now this beign sued could taint it severly. Bah, let them sue...and then well sue back for time and harrassment. My dad says, let them come try and collect... hell wrap the collectors head around a phone pole.

well the next few days is going to be interesting.

 

[EyeMWing]

Originally posted by: sao123
there is an older lady at the church named shirley who has cancer, and will probably die soon. She has no remaining family, so my mother being the nice person she is, became the power of attourney for her. She has managed shirleys debts, and made the decisions for her healthcare.

Currently there are some bills that Shirleys estate cannot pay, but will eventually be paid when Shirleys life insurance is collected. Some collector called today 5 times and threatened to sue my mom claiming that my mom is a cosigner for all shirleys debts currently about 3K. Which is complete BS, she only has power of attourney (which legally is decision making power, but no debt responsibility). So now she has to go the attourneys office and the bank to get this cleared up.

My mom is really upset now because she has a perfect credit score, and now this beign sued could taint it severly. Bah, let them sue...and then well sue back for time and harrassment. My dad says, let them come try and collect... hell wrap the collectors head around a phone pole.

well the next few days is going to be interesting.

Only for a few moments - until you call the credit reporting agencies, and forward them a copy of whatever documents they request. This is, assuming anything can be put on her report to begin with - I find it hard to believe that entries could be made for an account that doesn't exist.

 

[Eeezee]

Someone has to pay the debts, and I believe that resopnsibility does go to whoever has the power of attorney. They will collect. What does it matter if you pay them now instead of waiting until the life insurance is collected?

 

[Kelvrick]

Originally posted by: Eeezee
Someone has to pay the debts, and I believe that resopnsibility does go to whoever has the power of attorney. They will collect. What does it matter if you pay them now instead of waiting until the life insurance is collected?

Because they would have to pay with thier own money now? How stupid are you?

 

[DaWhim]

let them damage your mom's credit report and sue them for the damage.

 

[dartworth]

Question: What happens when someone passes away and leaves substantial debts? Is the survivor responsible for paying the deceased person's medical bills, outstanding loans or charge accounts? I'm asking because I have financial power of attorney for my brother, who is deeply in debt.

Answer: A survivor's responsibility for debts depends on who the survivor is and what role he or she took in creating the debt.

In general, creditors are paid out of the deceased person's estate. If there aren't enough assets, the creditors may ? in some states and circumstances ? pursue the widow or widower. In California and other community property states, for example, debts incurred during marriage are typically considered the responsibility of both parties. Surviving spouses also can be held responsible in every state for joint debts, such as a credit card that lists both people as joint account holders.

Creditors typically don't have recourse against other family members, however, unless those family members co-signed for the debt or otherwise held joint responsibility.

Your power of attorney doesn't really change the situation. The document entitles you to make financial decisions for your brother but typically doesn't make you liable for his debts.

?You are not opening yourself up to personal liability by agreeing to serve under this type of document," said Shae Irving, senior legal editor for Nolo Press, a legal self-help publisher. "They're designed to shield people from exactly that type of problem."

 

[everman]

She never assumed any debts when taking power of attorney whether special or general. I'm assuming she has a special power, general does have some tax issues she should be aware of.

People working for collections agencies at the lowest levels aren't the brightest.

 

[sao123]

Originally posted by: dartworth
Question: What happens when someone passes away and leaves substantial debts? Is the survivor responsible for paying the deceased person's medical bills, outstanding loans or charge accounts? I'm asking because I have financial power of attorney for my brother, who is deeply in debt.

Answer: A survivor's responsibility for debts depends on who the survivor is and what role he or she took in creating the debt.

In general, creditors are paid out of the deceased person's estate. If there aren't enough assets, the creditors may ? in some states and circumstances ? pursue the widow or widower. In California and other community property states, for example, debts incurred during marriage are typically considered the responsibility of both parties. Surviving spouses also can be held responsible in every state for joint debts, such as a credit card that lists both people as joint account holders.

Creditors typically don't have recourse against other family members, however, unless those family members co-signed for the debt or otherwise held joint responsibility.

Your power of attorney doesn't really change the situation. The document entitles you to make financial decisions for your brother but typically doesn't make you liable for his debts.

?You are not opening yourself up to personal liability by agreeing to serve under this type of document," said Shae Irving, senior legal editor for Nolo Press, a legal self-help publisher. "They're designed to shield people from exactly that type of problem."

this is the truth... the task before my mom, is merely to use the bank and lawyer to prove that she is merely power of attourney, and not a member of the remaining estate.

 

[GuitarDaddy]

They can't do anything without your Moms SS#, nothing to worry about. Ignore them

 

[pulse8]

All that aside, it's against the law for collection agencies to threaten legal action if they have no intention of persuing it. I seriously doubt for $3k they would take you to court. It would cost them that much in legal fees to collect the money.

 

[dartworth]

no good deed goes unpunished...

 

[Goosemaster]

Originally posted by: dartworth
Question: What happens when someone passes away and leaves substantial debts? Is the survivor responsible for paying the deceased person's medical bills, outstanding loans or charge accounts? I'm asking because I have financial power of attorney for my brother, who is deeply in debt.

Answer: A survivor's responsibility for debts depends on who the survivor is and what role he or she took in creating the debt.

In general, creditors are paid out of the deceased person's estate. If there aren't enough assets, the creditors may ? in some states and circumstances ? pursue the widow or widower. In California and other community property states, for example, debts incurred during marriage are typically considered the responsibility of both parties. Surviving spouses also can be held responsible in every state for joint debts, such as a credit card that lists both people as joint account holders.

Creditors typically don't have recourse against other family members, however, unless those family members co-signed for the debt or otherwise held joint responsibility.

Your power of attorney doesn't really change the situation. The document entitles you to make financial decisions for your brother but typically doesn't make you liable for his debts.

?You are not opening yourself up to personal liability by agreeing to serve under this type of document," said Shae Irving, senior legal editor for Nolo Press, a legal self-help publisher. "They're designed to shield people from exactly that type of problem."

good info...nice to know..

 

[BigJ]

The one thing I would be worried about is to make sure that your mother acted solely under "power of attorney" and that she did not accidentally co-sign for some of debt that has now gone to collections.

 

[sao123]

Originally posted by: BigJ
The one thing I would be worried about is to make sure that your mother acted solely under "power of attorney" and that she did not accidentally co-sign for some of debt that has now gone to collections.

fortunately, the debt was incurred long before my mom became the power of attourney. That should be easy to prove.

 

[notfred]

They won't sue, and they won't come to collect, they'll just make lots of annoying phone calls, then they'll sell the debt off to another collection agency that'll do the same thing.

 

[Eeezee]

Originally posted by: Kelvrick

Originally posted by: Eeezee
Someone has to pay the debts, and I believe that resopnsibility does go to whoever has the power of attorney. They will collect. What does it matter if you pay them now instead of waiting until the life insurance is collected?

Because they would have to pay with thier own money now? How stupid are you?

How stupid are you? They'll take it out of the life insurance money later, and in the end they haven't lost anything.

 

[olds]

attorney

 

[DrPizza]

Collection agencies are notorious for threatening strong arm tactics like that. They're more than happy to lie to you, and threaten to sue you. Next time the collection agency calls you, inform them, "The remainder of this call is going to be recorded." That *should* eliminate most of the b.s. coming from them, but then again, a lot of their employees really don't care.

 

[DrPizza]

Hmmmm... somewhere I read about something that if collection agencies do it, you are relieved of that debt... That is, if the collection agency breaks some particular rule, the debt in nulled or something like that... Pursue that route

BTW, the lady has no family... but has life insurance? Who is the beneficiary of the insurance policy? Better check on that while she's still alive.

 

[amdforever2]

Get recorder.

Have mom ask next time they call

"gosh does this mean I can go to jail!?"


they'll say yes


BAM

FDCPA violation

 

[DrPizza]

Originally posted by: amdforever2
Get recorder.

Have mom ask next time they call

"gosh does this mean I can go to jail!?"


they'll say yes


BAM

FDCPA violation

Exactly! If they want to play hardball, bring a big stick and play with them.

 

[mrchan]

Tell them to stop calling you and want all further contact in writing. If they call you again, it's harrassment.

 

[compnovice]

Originally posted by: amdforever2
Get recorder.

Have mom ask next time they call

"gosh does this mean I can go to jail!?"


they'll say yes


BAM

FDCPA violation

I don't think that would hold up in the court. You would have to inform them beforehand that the call is being recorded....

 

[amdforever2]

Originally posted by: compnovice

Originally posted by: amdforever2
Get recorder.

Have mom ask next time they call

"gosh does this mean I can go to jail!?"


they'll say yes


BAM

FDCPA violation

I don't think that would hold up in the court. You would have to inform them beforehand that the call is being recorded....

that depends on your state

 

[Kelvrick]

Originally posted by: Eeezee

Originally posted by: Kelvrick

Originally posted by: Eeezee
Someone has to pay the debts, and I believe that resopnsibility does go to whoever has the power of attorney. They will collect. What does it matter if you pay them now instead of waiting until the life insurance is collected?

Because they would have to pay with thier own money now? How stupid are you?

How stupid are you? They'll take it out of the life insurance money later, and in the end they haven't lost anything.

WTF? How can that be ok with you? Why would they have to pull from their own funds now to pay off a debt that is not theirs? I'm glad you don't run anyone's finances, but if you do, I feel sorry for them.