Charles Schumer, US Senator from New York
Earlier this month, we posted on the New York Times article regarding agencies that collect on dead people’s debt.
Well, it appears that US Senator Charles Schumer from New York has read the article as well (or maybe he heard about it here?) and has called for a Federal Investigation into collecting on dead people.
It is probably unlikely that there will be an actual investigation or that anything will come of this, but we can always hope. Either way, it is certainly positive to see the respected US Senator shine some light on this despicable practice but bottom-feeding collection agencies.
In a letter to Federal Trade Commission Chairman Jon Leibowitz, Schumer writes:
I am dismayed to learn from recent media reports that some debt collection companies have made it a practice to attempt to collect unpaid credit card balances – and perhaps other types of unsecured debts – from the families of the deceased…
I find it shocking that a debt collection company would determine that it is worth causing profound anguish and embarrassment in order to collect debts that are sometimes as low as $50, or which result in a payment of $15 a month from a widow or widower who is struggling to make ends meet. If a debt is large enough to be worth collecting, there are legal ways to obtain payment.
First, if a surviving family member has also signed for the card, that family member will be obligated to pay the debt. Second, an unsecured creditor such as a credit card issuer can obtain payment from the estate of the deceased through a routine probate proceeding, after the holders of secured debt – such as mortgagors– are paid. This practice of harassing living family members for upfront payments results in putting credit card issuers in the front of the line to get money from an estate, rather than after those who hold secured debt.
Given that the FTC receives more complaints about debt collection companies than any other American business, I hope and expect that you will be thorough in your investigation of this matter.
I could not have said it better myself Senator Schumer.
We’ll keep you updated if there are any developments on this issue.
**Complete press release and letter to FTC Chairman Leibowitz**
Tags: Debt Collectors, Deceased Debt, Federal Trade Commission, New York Times, Sen. Schumer
