I Think It Is All Over For Me Due to the Fraud

[Anonymous]

My mother recently passed away. 6 months ago.  Today, out of the blue, I received a collections notice telling me I owed over $6000.00 to the funeral home.  First of all, her funeral was pre-paid and $200 for small charges was paid before the funeral, in full.  Secondly, I never received any bills from the funeral home.  This is my first bill from the home--from a collections agency.    As far as I am concerned, my financial life is over unless there is a way to effectively get a collections notice off my record.  Looks like they are there 7 years.  If I cannot, everything I have worked for is gone.  I spent my entire life maintaining and keeping great credit and have (had) a high FICO score. It would be a  7 year disaster and I am not even guilty of not paying any bills.  Also, this is a so-called bill of my mother's estate, not my personal bill.  If this cannot be resolved,  I feel like my financial life is over.  That collection notice will sit there for 7 years and ruin it all.  Its a holiday weekend.  I could not call the collection agency today. I emailed the funeral home, and sent an email to the estate attorney.  Really, is it over for me.  Is there no way to get this fraudulent info off of my credit reports?  Do I have no rights?  I am sending a dispute letter Tuesday and am so fed up I even emailed the funeral home threatening legal action. 

[llecs]

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

Let's say it is legit just for a sec, it's still not over because there are ways to get it legitimately removed before the 7 yrs expire.

First off, I'm sorry for your loss. The first step I would take in a situation like this would be to mail the CA a DV and I would send it CMRRR. Next, I would do what you did already and contact the funeral home. I would ask them for any contracts, documents, and bills showing that you owe $6000. I would also read over your pre-paid funeral docs and if clear that they were paid, then I'd frankly send them a copy. Maybe that alone could get them to recall the debt from the CA and end it. I would then wait for both to respond.

While you are waiting, look over the pre-paid docs in detail. I'd gather any receipts and keep them  on standby. Did you personally sign for anything with the funeral home? You may not be liable anyway if you didn't sign for it. Also look over any estate info you have and maybe you'll find what you are looking for in there too. Finally, I bet each state has a division or office that handles funeral homes. If you or anyone in your family pre-paid at some point, they may actually have records, or if not, they can work on your behalf if you did pre-pay. I'd keep their contact info handy, but I wouldn't contact them just yet.

Oh...and some insurance-type policies might cover funeral expenses too. I'd pour over everything just in case the pre-payment was done via there or maybe your mom subscribed to a policy unbeknownst to you that may have covered items like there (e.g. Reimbursements).

[Imhotrodcrazy]

I am truly sorry for your loss.  It is very hard to lose a loved one.  Do not worry about this so called bill until you talk to the funeral home.  I would like to add just a couple of additional thoughts.  I too have paid for my funeral in advance so that my children do not have to worry about it.  I am sure  that your mom kept a folder with a copy of  the original contract and  a record showing all payments  made, as I have done.  In that folder, I have put all paid receipts and a paid in full letter from the cemetery showing a zero balance.  I know this has been a trying time, but take the time to look for those  records.  I am sure you will find proof of payment.  I have told both of my children where these docs are, and I urge all parents who have a pre-paid funeral to make sure their loved ones know where to find the records.  My thoughts and prayers are with you and your family.  Please keep us posted after you check with the funeral home.  We are all here to help were we can.   

[Anonymous]

Thanks to both of you for this information.  Much appreciated.  Yes, I do have a copy of the pre-paid funeral doc,  I will go back and review everything.  All estate info is in one folder.  And, I will educate myself on the suggested pdf's, etc.  At least I am getting the idea that there is hope this can be resolved in a way so my credit is not damaged.  I also contacted the estate attorney (by email as its a long way until Tuesday), and will get a letter ready to send on Tuesday.   This site is just so full of info.  

[Anonymous]

grace10, these forums are also full of people who may have been through the same things that you are going through right now.

Stay calm for the rest of this weekend, and enjoy it.  That's what Mom wanted for you, that's why she did what she did.  And she left you the docs to prove it.

Come Tuesday, if anything needs straightening out, there's an office in your state that will most assuredly help you, if that's what it takes.  But that funeral home may rethink their position before that happens. 

This could be an unintentional oversight.  Billing errors do happen, but the proof of the pudding is the proof of prepayment in those docs you have. 

In any event, you're going to be OK, and the law will back you up.

[Anonymous]

Uborrow-Upay,

Yes, good advice.  Mother would want me to be calm and enjoy the weekend, anyway.  Now that I have had some distance from the intial shock of this letter, I really believe this is just a massive oversight from their office.  No money is owed at all.  This is a small town funeral company and I am just going to put my thoughts about this on positive outcomes.  Tuesday, I will deal with this, and will get some information.  Just what I needed to hear this morning.  Thanks!

[Anonymous]

Some funeral homes take advantage of families during times of confusion and grief.  They will try to "upsize" certain items from those that were previously paid.  The good news, though, is that unless they have these new expenses in writing it will be difficult for them to prevail.  If they do have them in writing, then that may have shifted the debt from the estate to the individual who authorized the goods / services.

If this is what happened, have your attorney deal with it.  Also contact your state attorney general.  In most states they do not take kindly to businesses they prey on grief-stricken families.

[RobertEG]

I personally would not just sit back and wait for a response to a DV letter.  There is no compulsory period for their response, unless you live in Texas.  Meanwhile, it is continuing to affect your credit score.

I would still send the DV, but would also immediately send a direct dispute to the debt collector under FCRA 623(a)(8), asserting $0 debt, and thus the incorrect reporting of a collection.  Back-and-forth informal conversations wont force response to the substance of your issues.  A dispute will.  They did not call you before reporting, and if they have a valid collection referral from the funeral home, that is about all they need to validate a DV request.  I would address the substance by way of dispute.

Unfortunately, since the funeral home never reported to a CRA, you cant dispute the accuracy of any credit reporting with them, so are forced to dispute with the debt collector.

[Anonymous]

Thank you, Robert.  I will prepare an additional letter re: Direct Dispute.  It is now well into Tuesday morning, and I have received no response from the funeral home from my email and phone message.  

[Anonymous]

So, today I sent off a combination DV and Direct Dispute letter.  It went to the collection agency, a copy to the funeral home (both of these overnight mail), and another copy to the estate attorney. Question in my mind whether this letter should have been sent to the estate, not me.   Zero response today from the funeral home, despite leaving a telephone message and sending emails of my concerns.  I gave them 30 days to respond, used letter examples from various sources and made the point that anything that shows up as a negative on my credit report could be constituted as fraud, or something to that effect. This stuff is scary.  With one letter, everything that I have worked hard for all your life to maintain financial responsibly can be taken away.  I do not know what is on my credit reports.  That is another cost.  So, will see what tomorrow brings now that I have taken action.  At least I know I have options and things I can do.