FTC Proposes New Guidelines for Collecting Debt From Dead People

December 3, 2010
Advertisement

imageFrom the WashingtonPost.com:

The Federal Trade Commission is seeking to revise the protocol surrounding two of life’s touchiest subjects: debt and death.

Debt collection has become an increasingly controversial practice as more Americans default on loan payments. Government data show the charge-off rate on consumer loans spiked to 6.71 percent during the second quarter – the highest level in at least 25 years. (Five years ago, the charge-off rate – loans written off by their lenders as uncollectable – was 2.4 percent.) Meanwhile, debt collection ranked second on the FTC’s list of most common consumer complaints last year after not even cracking the top 20 two years ago.

Advertisement

The rise in debt collection has spawned a niche market devoted to recouping money from those who die with unpaid bills. The FTC began investigating the practice several months ago and found confusion among collectors over whom they were allowed to contact and what they could say, said Joel Winston, the agency’s associate director of financial practices.

“The debt doesn’t disappear when the person dies,” he said. “It’s still a valid debt, and the collector can still collect it.”

But the question is: From whom?

Read Rest of Article on WashingtonPost.com

CDFuneralNews

CDFuneralNews

ConnectingDirectors.com is the leading online daily publication for funeral professionals with a reader base of over 45,000 of the most elite and forward-thinking professionals in the profession. With ConnectingDirectors.com we have created a global community through an online platform allowing funeral professionals to Stay Current. Stay Informed and Stay Elite.
CDFuneralNews
Advertisement

You may be interested

This Is The Game Every Funeral Director Wants, But It’s Not Real
Humor
289 views
Humor
289 views

This Is The Game Every Funeral Director Wants, But It’s Not Real

Ryan Thogmartin - February 21, 2018

Cadaver Chris needs your help! His viewing is tomorrow! It's Embalmer, the funtacular funeral game where you're the embalmer! From the gurney to the grave, it's Embalmer! Embalming fluid not included.

FrontRunner Professional Announces Software Integration with Google Calendar
Funeral Industry Press Releases
86 views
Funeral Industry Press Releases
86 views

FrontRunner Professional Announces Software Integration with Google Calendar

CDFuneralNews - February 21, 2018

Today FrontRunner Professional announced the release of Eventify, a native integration between their award-winning Pulse Business System and the Google…

Legacy Funeral Group Purchased Magnolia Chapel in Tuscaloosa, Alabama
Acquisitions
131 views
Acquisitions
131 views

Legacy Funeral Group Purchased Magnolia Chapel in Tuscaloosa, Alabama

CDFuneralNews - February 21, 2018

(Houston, TX) Legacy Funeral Group announces the acquisition of Magnolia Chapel Funeral Homes in Tuscaloosa, Alabama. The expansion comes just…

Comments