DCM Services - Collections for Deceased

[socal2013]

My mother passed away last August. My father never did any of the finances so I am handling them for him. We are in California (community property state). Two of her credit cards were with Sam's Club. One had a balance of $150 and another for $1450. When I contacted Sam's Club (Synchrony) about her passing, they closed the accounts and reported them to the agencies as closed and "paid as agreed" with no balance. This is also what is shown on their credit reports. However, we are now being contacted by a collection company called DCM Services and they want to know who is the person responsible for paying her debt for these accounts that are being reported as paid? Anyone ever dealt with something like this?  Thanks!

[pizza1]

oh gosh...
First, Im so sorry of your mothers passing, and Im sure your family continues to grieve, so this isn't helping at all.

I wish I could say that Ive had experience in this, but I haven't. Im really hoping that the poster....RobertEG comes on here. I think he would have some info at least to direct you to the right place.

Give your thread a little bit to get some feedback. This usually isn't something we see very often on the boards.

I also think Ill ask a CL or a MOD to move this to the rebuilding section. You will get more exposure there, and hopefully some answers.

[Anonymous]

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@pizza1 wrote:
oh gosh...
First, Im so sorry of your mothers passing, and Im sure your family continues to grieve, so this isn't helping at all.

I wish I could say that Ive had experience in this, but I haven't. Im really hoping that the poster....RobertEG comes on here. I think he would have some info at least to direct you to the right place.

Give your thread a little bit to get some feedback. This usually isn't something we see very often on the boards.

I also think Ill ask a CL or a MOD to move this to the rebuilding section. You will get more exposure there, and hopefully some answers.

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+1 and ditto.

Sooo sorry for your loss and especially that someone wants to throw sand in your face at this point. I'm sure someone will have some advice for you.

[Anonymous]

+2 and ditto. 

I know when my mom passed away, the funeral director told us to make sure to put an obit in the local newspaper so debt collectors could not come after us for not informing them of her passing.  My mom had no spouse at the time of death so there was no one to fall back on except her kids. 

In your case, the debt collectors may try to go after your dad for the money.  I would check with a financial attorney not only about this issue but how to protect your dad from predatory scam artists and such. 

My grandmother was a victim of a scam artist and I did not even realize it until after the fact. 

[pipeguy]

I recently commented throughout a different thread on this situation, but in a nutshell if the card was only in one name (not jointly owned) once the estate goes into probate, any and all debts become the "problem" of the estate. Unsecured debt, such as credit cards are pretty low on the payback schedule of the estate, and there are specific rules whereas a creditor has to put a claim into the estate. I don't believe a debt collector has any standing to file a claim, but that might vary by each state and "probate & estate" are state regulated. Federal estate taxes don't cut in until 5.8 million and most (not all) states either follow this rule/amount for state estate taxes or waive them altogether. 

Direct heirs are entitled to a specific share of the estate assets in most cases and jointly owned property such as real estate - depending on how it is titled - goes tax free to the joint owner (rights of survivorship). Although you can file simple estates without an attorney, it's generally a good idea to get an estate attorney to help file the proper papers and schedules through the courts.

I have recently gone though this process (estate closed last month) and its a PITA generally, that said there are very specific rules that govern which debts get paid by the estate and DO NOT RUSH to pay any of them because the are the responsibility of the estate not the heirs or family - there is no way that a credit card issuer should turn an unpaid credit card balance over to a debt collector if they are imformed that the estate is in probate.

Think of estate assets and obligations as kind of "bankruptcy" where assets are liquidated and there is a "stay on creditor actions", payback of assets/debts is limited and regulated based on the rules of the courts in a specific order and timeframe.

You'll need to look up the specific rules for your state and if there are assets that don't automatically convey such as household items jointly owned, real estate jointly titled, etc these assets need to be sold and with those cash assets, certain debts should be paid by the estate "IF" the creditor makes a proper claim within the proper timeframe. Funeral expenses, taxes and court fees come before any creditor and in many cases will wipe out any non-obligated cash value of smal estates. Talk to an estate attorney, for small estates this is not a major expense (attorney fees) because your issue is not just an ill intended debt collector, it's the total settlement of the estate and the probate process too.

Unsecured debt is very low on this list as far as pay back - debt collectors are basically not even on the list especially if they are trying to collect a debt created by the death of the debtor.  If it was me, I'd call the original creditor and tell them flat out that the account is in probate and if there is a claim it needs to be submitted to the estate and courts - in addition if they don't call off the debt collector, you are going to make that known to the court. Note too that other than notifying the credit card accounts that the account should be closed due to the death of the account holder, you do NOT need to provide them any additional information. You may need to supply a death certificate and a letter of administration, but you do NOT need to help them in any way file a claim against the estate.  Once the estate goes into probate, you'll need to publish the notice of the estate in a local paper (it's usually a very small "local" paper that no one ever looks at), once the public notice is made, creditors have a certain time to file a claim (90 to 120 days but this can vary by the state) if a creditor misses this deadline, they have no claim for recorvery.

I suspect, just a guess, that this might be a scam because it makes no sense that a debt collector would try to collect on an unsecured credit card account where the estate is currently in probate - thats just begging for legal troubles. 

[Anonymous]

This company is the scum of the earth, the lowest of the low. Tell them to drop dead.

[RobertEG]

The following Federal Trade Commission publication answers most of your questions:

Debts and Deceased Relatives

After a relative dies, the last thing grieving family members want are calls from debt collectors asking them to pay a loved one's debts. As a rule, those debts are paid from the deceased person's estate.

Family members typically are not obligated to pay the debts of a deceased relative from their own assets. What's more, family members – and all consumers – are protected by the federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to try to collect a debt.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Does a debt go away when the debtor dies?

No. The estate of the deceased person owes the debt. If there isn't enough money in the estate to cover the debt, it typically goes unpaid. But there are exceptions to this rule. You may be responsible for the debt if you:

• co-signed the obligation;
• live in a community property state, such as California;
• are the deceased person's spouse and state law requires you to pay a particular type of debt, like some health care expenses; or
• were legally responsible for resolving the estate and didn't comply with certain state probate laws.

If you have questions about whether you are legally obligated to pay a deceased person's debts from your own assets, talk to a lawyer.

Who has the authority to pay the deceased person's debt out of his or her assets? 

The person named in a will who is responsible for settling a deceased person's affairs is called the executor. If there is no will, the court may appoint an administrator, personal representative, or universal successor, and give them the authority to settle the affairs. In some states, others (or other people) may have that authority, even if they haven't been formally appointed by the court.

Whom may a debt collector talk to about a deceased person's debt? 

Under the FDCPA, collectors can contact and discuss the deceased person's debts with that person's spouse, parent(s) (if the deceased was a minor child), guardian, executor, or administrator. Also, the FTC permits collectors to contact any other person authorized to pay debts with assets from the deceased person's estate. Debt collectors may not discuss the debts of deceased persons with anyone else.

If a debt collector contacts a deceased person's relative, what can they talk about? 

Collectors are allowed to contact third parties (such as a relative) to get the name, address, and telephone number of the deceased person's spouse, executor, administrator, or other person authorized to pay the deceased's debts. Collectors usually are permitted to contact such third parties only once to get this information. The main exception is if a collector reasonably believes that the information provided initially was inaccurate or incomplete, and that the third party now has more accurate or complete information. But, collectors cannot say anything about the debt to the third party.

Even if I am authorized to pay a deceased person's debt, can I stop a debt collector from contacting me about the debt? 

Yes. To exercise this right, you must send a letter to the collector stating that you do not want the collector to contact you again. A telephone call is not enough. Make a copy of your letter for your files, send the original by certified mail, and pay for a "return receipt" so you can document what the collector received and when. Once the collector gets your letter, he cannot contact you again except to confirm that there will be no further contact or that he or the creditor plans to take a specific action, like filing a lawsuit to collect the debt. Keep in mind that even if you stop collectors from communicating with you, you are still responsible for the debt.

For Complaints and More Information 

Report any problems you have with a debt collector to your state Attorney General's office at naag.org and the Federal Trade Commission at ftccomplaintassistant.gov. Many states have their own debt collection laws that are different from the federal FDCPA. Your Attorney General's office can help you determine your rights under your state's law.

[Anonymous]

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@socal2013 wrote:

My mother passed away last August. My father never did any of the finances so I am handling them for him. We are in California (community property state). Two of her credit cards were with Sam's Club. One had a balance of $150 and another for $1450. When I contacted Sam's Club (Synchrony) about her passing, they closed the accounts and reported them to the agencies as closed and "paid as agreed" with no balance. This is also what is shown on their credit reports. However, we are now being contacted by a collection company called DCM Services and they want to know who is the person responsible for paying her debt for these accounts that are being reported as paid? Anyone ever dealt with something like this?  Thanks!

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If you processed her estate by the law then tell them to go pound sand.  They had a window to submit the debt for payment and failed to do so.

[pizza1]

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@RobertEG wrote:

The following Federal Trade Commission publication answers most of your questions:

Debts and Deceased Relatives

After a relative dies, the last thing grieving family members want are calls from debt collectors asking them to pay a loved one's debts. As a rule, those debts are paid from the deceased person's estate.

Family members typically are not obligated to pay the debts of a deceased relative from their own assets. What's more, family members – and all consumers – are protected by the federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to try to collect a debt.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Does a debt go away when the debtor dies?

No. The estate of the deceased person owes the debt. If there isn't enough money in the estate to cover the debt, it typically goes unpaid. But there are exceptions to this rule. You may be responsible for the debt if you:

• co-signed the obligation;
• live in a community property state, such as California;
• are the deceased person's spouse and state law requires you to pay a particular type of debt, like some health care expenses; or
• were legally responsible for resolving the estate and didn't comply with certain state probate laws.

If you have questions about whether you are legally obligated to pay a deceased person's debts from your own assets, talk to a lawyer.

Who has the authority to pay the deceased person's debt out of his or her assets? 

The person named in a will who is responsible for settling a deceased person's affairs is called the executor. If there is no will, the court may appoint an administrator, personal representative, or universal successor, and give them the authority to settle the affairs. In some states, others (or other people) may have that authority, even if they haven't been formally appointed by the court.

Whom may a debt collector talk to about a deceased person's debt? 

Under the FDCPA, collectors can contact and discuss the deceased person's debts with that person's spouse, parent(s) (if the deceased was a minor child), guardian, executor, or administrator. Also, the FTC permits collectors to contact any other person authorized to pay debts with assets from the deceased person's estate. Debt collectors may not discuss the debts of deceased persons with anyone else.

If a debt collector contacts a deceased person's relative, what can they talk about? 

Collectors are allowed to contact third parties (such as a relative) to get the name, address, and telephone number of the deceased person's spouse, executor, administrator, or other person authorized to pay the deceased's debts. Collectors usually are permitted to contact such third parties only once to get this information. The main exception is if a collector reasonably believes that the information provided initially was inaccurate or incomplete, and that the third party now has more accurate or complete information. But, collectors cannot say anything about the debt to the third party.

Even if I am authorized to pay a deceased person's debt, can I stop a debt collector from contacting me about the debt? 

Yes. To exercise this right, you must send a letter to the collector stating that you do not want the collector to contact you again. A telephone call is not enough. Make a copy of your letter for your files, send the original by certified mail, and pay for a "return receipt" so you can document what the collector received and when. Once the collector gets your letter, he cannot contact you again except to confirm that there will be no further contact or that he or the creditor plans to take a specific action, like filing a lawsuit to collect the debt. Keep in mind that even if you stop collectors from communicating with you, you are still responsible for the debt.

For Complaints and More Information 

Report any problems you have with a debt collector to your state Attorney General's office at naag.org and the Federal Trade Commission at ftccomplaintassistant.gov. Many states have their own debt collection laws that are different from the federal FDCPA. Your Attorney General's office can help you determine your rights under your state's law.

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Thank you for coming on Robert...

Also appreciate everyone else for commenting to the OP...

[pipeguy]

Update (as it applies): http://www.marketwatch.com/story/what-happens-to-your-debt-when-you-die-2016-03-14