Debt collection can be an ugly business, but in a country that is increasingly dependent on credit for its continued existence, it is a necessary one. More and more debt collection agencies are being reported, and even legislated against, as gray-area practices proliferate. But recently, debt collection agencies have reached an all-time low.
1st Financial Center – a corporation focused on financial planning and consumer education – has revealed that many debt collectors are now trained in grief counseling and empathic active listening in order to collect on debts of the recently deceased, by placing strategic calls to mourning families.
According to the Chief Advisor at 1st Financial, “debt collectors are contacting individuals when they are most vulnerable.” These calls are arguably a violation of the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair and deceptive debt collection practices. In most states, next of kin are not liable for unpaid debts of family members and loved-ones. The deceased’s estate is most often responsible, and in cases where the estate is unable to fulfill all outstanding debts, many debts are forgiven... Read More
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