I have had many elderly consumers who have come to my credit counseling business because of abuse by bill collectors. We just had an 80-year-old woman who was told that if she did not pay a bill she owed, the creditor would sell her home in order to collect the debt, forcing her to live on the streets with nothing to eat.
Threats like this are appalling. This elderly client was taking half of her necessary prescriptions to have enough money to make the monthly payments each month to the creditor. It is not acceptable or lawful for a collector to collect in this manner. The good news is, we stepped in and forced the company to dismiss the entire debt.
The elderly are also frequently told that they are going to be sued if they do not pay their debts, or that their Social Security check will be garnished. Collectors cannot misrepresent their legal authority. Many federal benefits are generally protected from ordinary creditor garnishment, but exceptions and bank-account rules apply. Social Security and SSDI may sometimes be garnished for government debts or support obligations; SSI has different protections. Direct-deposit protections and state unemployment-benefit protections also vary. Seek legal help for an actual garnishment. To add to that, elderly people are constantly harassed with threats the creditor has no intention of acting on.
It is not that the typical elderly person living on a fixed income does not want to pay his or her debts back, but when you lose a spouse or end up with a serious illness, you are going to lose income, and at a late age you cannot go back to work and start over. Many elderly consumers are advised to file bankruptcy in their 80s and 90s when they do not ever plan on using credit the rest of their lives. What is the point?
If you are elderly and live on a fixed income, you can end this kind of debt collection harassment by sending a letter demanding no more calls or mail correspondence in regards to the debt. It is important to send the request in writing, by certified mail with return receipt requested. After a debt collector receives a written cease-contact request, ordinary collection communications must stop, but limited responses remain permitted, such as acknowledging cessation or notifying a specific action. The request does not cancel the debt or prevent an otherwise lawful lawsuit.
An example of this kind of letter would be the following:
“Do not call any of the numbers you may have for me or send any further correspondence in regards to this debt, as I am on a fixed income and in failing health, and I cannot repay this debt. Further harassment will cause more health issues, and I cannot physically take any more harassing calls. Thank you for your understanding.”
Then sign and date the letter. A violation may provide legal remedies, but it does not automatically cancel a valid debt.
I hope this information helps you with your elderly loved ones who are going through similar situations.
Current guidance: CFPB federal benefits and garnishment and FTC debt collection FAQs. Federal FDCPA rules generally apply to covered debt collectors; original creditors and state laws may differ.