Debt and Death: Collection Agencies Look to Seize Dark Opportunities

By Ray Deck
TMCnet Contributing Writer

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.

Debt collectors hope to profit from the sense of duty and dignity of many Americans to settle accounts even when there is no legal obligation to do so.

1st Financial Center seeks to educate consumers about the often foggy legal policies surrounding debt and death. The company’s rhetoric unfortunately rings a little hollow, as they also seek to profit from their information. As is usually the case, there is no substitution for impartial information collected from an independent source. Debt collection laws vary by state, so citizens should be sure to consult an attorney who is familiar with the area.