Collection agency called today threatening to sue my parents.

[torpid]

What do you get for 1st place when you have power of attourney?

 

[waggy]

Originally posted by: 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.

i have to agree. there is NO reason for the person to pay for it OUT OF HER FUNDS. None. thats stupid

wtf should she do that? why take the risk? really really dumb if you ask me.

edit: oh and power of attorney does not give you the right to take her money and put it in your pocket.

 

[Armitage]

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.

Uhm .... how stupid are you?
The OP's mom could only get money from the life insurance if she's listed as a benificiary. Nothing has been stated to that effect and it would look kind of suspicious if somebody with a power of attorney for an incompetent person (I assume that's why the OP's mother has the POA) made themselves a benificiary of the life insurance.

I suppose the OP's mom could draw up loan papers to officially loan her the money and become a creditor against the estate. But again - that's prett squirrely - since she'd be signing both lines on the form - as the creditor, and then again as the POA for the debtor. I don't think it would fly.

And finally, you're assuming there is enough money left over from the life insurance after all the other creditors are paid first.

 

[rsd]

The Boston Globe has had a series this week describing the whole collections industry and the scummy practices and such. An excellent job of reporting (for once).

Link to the first part (and rest)

 

[Pepsi90919]

ATTORNEY

 

[jlbenedict]

Originally posted by: 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.

Actually.. it doesn't cost much to file a lawsuit. I believe the filing fee in Maryland counties is $20 for Small Claims, which is what a $3k complaint would fall under.
If your agency is a junk debt buying collection agency, you can afford to file hundreds of cases a month and pay those legal fees. They rely on getting default judgments. Most consumers do not know their rights, and give in to the collection agencies demands and chose not to fight it; therefore, the collection agency wins, collecting huge $$$$
The collection industry is a multi-billion dollar a year industry.


Oh.. I can speak from experience.. I was sued for an alleged debt for $3,200'ish.. so, they will sue. Of course, I won

Pro Se FTW!!

 

[tk149]

1. They can't touch your mom's credit report.
2. If the collector files in court, your mom MUST respond, or else they will get a default judgment, and then she will be responsible for the debt.
3. Facts for Consumers

 

[Schfifty Five]

Originally posted by: Pepsi90919
ATTORNEY

POWER OF

 

[Jawo]

Originally posted by: rsd
The Boston Globe has had a series this week describing the whole collections industry and the scummy practices and such. An excellent job of reporting (for once).

Link to the first part (and rest)

Excellent articles....a long read, but well worth it! The scum of society has to get by somehow

 

[DaShen]

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

And then sue their ass!!! I guarantee if you pay a small fee for your attorney to write up the paperwork and send it to the Collection Agency, that will shut them up right quick.

 

[maximus maximus]

If your mom is a guarantor, then she is responsible if the person she has gauranteed, does not pay the money.

IMO, this is a serious issue. Get in touch with your lawyer.

 

[sao123]

mom spoke with the attourneys and bank today, everything will be corrected, but it will take some time.

A charity has been named the beneficiary of the policy, after all debts & burial costs have been paid for. Therefore, As power of attourney, no one has any recourse for collection from my mom.

 

[silverpig]

ATTORNEY

No 'U' dude

 

[bobdelt]

But once she got power of attorney, and made those descisions, she is responsible for those decisions, so she bears the risk and can be held responsible of the debt. She can't go buy a house for the hospitalized woman and be like, well darn, she can't pay, oh well. She isn't off the hook.

 

[waggy]

Originally posted by: bobdelt
But once she got power of attorney, and made those descisions, she is responsible for those decisions, so she bears the risk and can be held responsible of the debt. She can't go buy a house for the hospitalized woman and be like, well darn, she can't pay, oh well. She isn't off the hook.

you really have no clue what "Power of Attorney" really means do you?

 

[Deeko]

Let's talk law.

Power of Attorney is a form of Universal Agent. Universal Agents are allowed to act completely on the behalf of their principal. However, this does not give them any vicarious liability for the debts of the principal. If your mother signed any contracts, depending on how she signed, she could still technically be sued. If she only put her name down, she can technically be sued, and then she can in turn collect from the estate/life insurance. However, if she signed in proper agency form, including the name of the principal and including herself as agent (or power of attorney), she is not only absolved of financial responsibility, she can't even be tried in court, any judge with his/her salt will throw the case out.

As power of attorney, she is not a cosigner or gauranteer - that would make her a co-principal, not agent. As for bobdelt's comment, that's not true either. If she did something like that, she technically could be sued by the estate for negligance to her fiduciary duties, but not for the contract itself.

 

[sixone]

Originally posted by: everman
People working for collections agencies at the lowest levels aren't the brightest.

That's not exactly true. Most of them will say ANYTHING to get paid. They're counting on you to believe whatever they tell you. And if they won't fax you an offer for settlement, you'd better act as if they're lying, because chances are very good that they are.

 

[ModerateRepZero]

interesting article on third-party collections

http://articles.moneycentral.msn.com/Sa...ebt/SleazyNewDebtCollectorTactics.aspx

 

[Ausm]

Tell the bill collector to go fvck himself....classic bill collector B.S.



Ausm

 

[Raduque]

Originally posted by: rsd
The Boston Globe has had a series this week describing the whole collections industry and the scummy practices and such. An excellent job of reporting (for once).

Link to the first part (and rest)

That's disgusting, and I'm not even done with it all yet! Every single last one of these people and their accomplices in the justice system/LE system should be shot in the face. :|