Take action when collection agencies harass you or your family members or neighbors about your debts. A collection agency may not contact a third party more than once, unless the third party is asked to do so. The rest of the debt obligations fall into the deceased person’s estate (if any), and this is where the situation can get a bit muddy, especially for relatives who think they’re in line for an inheritance. Executors and family members can prevent collection agencies from harassing them by sending them a letter of injunction or hiring a lawyer and directing all calls to the law firm.
Can debt collection agencies harass family members?
The automatic suspension is an important protection for debtors who file for bankruptcy. This encourages creditors to stop calling, stop debt collection lawsuits, stop foreclosures and prevent wage seizures. The Fair Debt Collection Practices Act (FDCPA) contains strict rules about what collection agencies are allowed to do in terms of communication. To fall within the jurisdiction of the FDCPA, the calls must come from a company that is primarily involved in collecting debts.
References:
- Is it Legal for Creditors to Call Family Members? | SoloSuit Blog
- Dealing with Debt After Death of a Relative: Estates and Executors
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.