Debt collectors may be able to more aggressively target family members of recently deceased consumers. Laws that once blocked debt collectors from seeking payments from those who had recently lost family members could be weakened by a proposed Federal Trade Commission “statement of enforcement policy” according to a news release. “The plain language of the Fair Debt Collection Practices Act does not allow collectors to contact friends, neighbors or relatives except to obtain contact information for debtors,” Robert J Hobbs, a lawyer and debt collection issues expert for the National Consumer Law Center said in a news release. “This proposed rule could open the door for collectors to seek money by prodding and misleading grieving relatives and friends into thinking they have obligations that they don’t.”

According to recent news reports, the field of collecting debts on the deceased has become increasingly specialized. At least five firms focus specifically on this area of debt collection. According to the Minneapolis Star-Tribune, creditors that use specialists to collect debt from those who have passed away include Nordstrom, Citigroup, Wells Fargo, JPMorgan Chase and Discover Financial.

Right now the Fair Debt Collection Practices Act restricts debt collectors from targeting family members who have no legal obligation to pay, but the proposed change could make it easier for collectors to encourage family members to pay their deceased family members’ debts. “The FTC should strengthen protections for grieving families and friends, not open the door to debt collection efforts that often aim to exploit the vulnerability of the bereaved,” Hobbs said in a news release.

Tags: Star Tribune, plain language, door, debt collection issues, Act

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