In today's economy, budgets are tight in many households. While people are losing their homes to foreclosure and their jobs to the financial crisis, life marches forward.

In addition to financial stresses, family obligations and emergencies can't be avoided.

When a Loved One Dies

The loss of a loved one is devastating.

In addition to the emotional and psychological pain, the financial pain can also be great.

If the deceased had no insurance coverage to cover funeral expenses, it’s typically the responsibility of the immediate family to cover the cost.

This can add an extra burden to a family who may already be struggling.

Debt Predators

At least one company is now actively pursuing payment for debts of the deceased, according to The New York Times.

Some grieving family members are receiving collection calls from DCM Services in New York.

DCM Services employs debt collectors to call relatives of deceased debtors and ask if they would agree to settle the deceased’s balances on credit cards, loans or other final bills—even though the family often has no legal obligation to do so.

Unfortunately, many people don’t know that.

DCM uses this to their advantage.

How Debt Predators Find Their Targets

The collection company uses carefully crafted tactics and scripts to convince a large number of people that coughing up cash they don’t owe is the right thing to do.

The collection agency has been so successful in convincing people to pay up, collection efforts on accounts of the deceased are becoming a bigger trend.

How They Do It

The company first checks nationwide probate court databases to find out if the deceased person has an estate open.

If so, the company may file a claim against the estate and attempt to have the debt settled through the probate court.

However, in cases where there’s no estate, calls are made directly to the next of kin with condolences—and an appeal for them to settle the deceased’s debts.

Debt collectors at DCM receive specialized training to prepare them to confront family members with a loved one's burden of debt and teach them to play the morality card when boldly asking for payment.

Many people don’t know that they don’t have any obligation to satisfy the debt but they agree to pay because they believe their loved ones would have wanted them to, or to avoid any suggested legal or credit problems.

The Facts

In general, unless a family member is a co-signer on an account, they’re not legally responsible for the debts of their deceased family member.

In most cases, there’s no risk of a family member being penalized for refusing to pay a debt left behind by the deceased.

But, unfortunately, this fact is artfully omitted during the collection calls, unless the family member asks the debt collector firmly and directly about their legal obligation to pay.

Learn more about how filing for bankruptcy may help stop creditor harassment.

Tags: creditor harassment, debt predators, file bankruptcy, foreclosure