Christian Debt Recovery

Debt Next Of Kin

April 16th, 2011 |

Author: Gavin

debt next of kin

Death Can’T Hide You From This New Breed Of Debt Collectors

While thousands of homeowners are defaulting on their mortgage payments and banks need to be bailed out, a sector of society is paying its debts – the deceased.

When going south isn’t far enough

This is not the plot of the latest Stephen King novel. Many specially trained call center agents employed at the DCM Services in Minneapolis call up the deceased’s closest relative or kin and courteously ask if they are willing to shoulder any balance left on a loan or credit card, or maybe pay the last phone bill or card payment.

The recipient of the call, while not often legally bound to take over the debt of a parent, sibling or spouse, usually assume responsibility to settle it anyhow.

One man, when he was informed about his departed mother-in-law’s credit card bill worth $280, admitted he was currently unemployed and money is quite hard to come by for them. He, however, promised to pay $15 every month until the bill is settled.

Dead people are the latest areas being explored by the debt collecting industry and is considered one of the most lucrative. Collecting debt from the living is more difficult as debtors can be too scared and too broke to make even token payments.

The business of collecting from the deceased, however, is flourishing. Advancement in computer technology makes it possible to find out when estates are opened in the 3,000 probate courts all over the country and offer collectors the chance to file claims on time. However, if no formal estate exists and there is nothing to file against, then human emotions are next to be considered.

Debt collecting with a sympathetic tone

DCM Services new hires are extensively trained for three weeks to develop what insiders refer to as “empathic active listening” which combines the practiced comforting quality of a funeral director and the sympathetic tone of a close friend. As part of their training, new call center agents are taught to employ such stress-diffusing phrases as “I’m sorry for this inconvenience, but…” or “If I hear you correctly, you want…”

Autumn Boomgaarden, training manager at DCM Services, teaches her new hires to assume the role of a person who really cares.

The role of sentiment and morality

For some next of kin, assuming a departed relative’s debt is a matter of personal choice. While each state have its own ruling about this matter, the surviving relatives are generally not obligated to settle the dear departed’s bills from out of their pockets. Theoretically, collection agencies have the right to pursue any belongings inherited from the dear departed.

Sentiment, however, is a major player, as reported by collection agencies. Some relatives may have loyalties to the bank or credit card and will be more than willing to settle. Some will assume the debt out of a sense of morality and most people feel that they should honor the memory of their loved one.

Some debts are incurred during illness and death. The surviving relatives will want to see to it that doctor got paid, if only because they may require his services in the future. They want their departed loved ones to be at rest with the knowledge that their obligations have already been settled.

About the Author

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