Death and Taxes — and Debt Collection

Ben Franklin once said, "In this world nothing is certain but death and taxes."

Franklin lived in the 18th century. If he lived today, he might add "debt collection" to the list.

The New York Times reports that debt collectors for DCM Services, feeling the pinch of a terrible economy, are harassing "the dear departed's next of kin and kindly asking if they want to settle the balance on a credit card or bank loan, or perhaps make that final utility bill or cellphone payment."

Apparently, collecting from the dead is a thriving business. As David Streitfeld writes for the Times, "The people on the other end of the line often have no legal obligation to assume the debt of a spouse, sibling or parent. But they take responsibility for it anyway."

Even if they are in dire straits themselves.

" 'I am out of work now, to be honest with you, and money is very tight for us,' one man declared on a recent phone call after he was apprised of his late mother–in–law's $280 credit card bill," Streitfeld writes. "He promised to pay $15 a month."

In most states, survivors have no legal obligation to pay a dead relative's debts. But debt collectors don't go out of their way to inform them of that fact. They have a bottom line to consider.

"Scott Weltman of Weltman, Weinberg & Reis, a Cleveland law firm that performs deceased collections, says that if family members ask, 'we definitely tell them' they have no legal obligation to pay," Streitfeld writes. " 'But is it disclosed upfront — Mr. Smith, you definitely don't owe the money? It’s not that blunt.' "

Being in this line of work is a tough way to make a living, even if one is not unduly sensitive. Streitfeld observes, "Not everyone has the temperament to make such calls. About half of DCM’s hires do not make it past the first 90 days.

"For those who survive, many tools help them deal with stress: yoga classes and foosball tables, a rotating assortment of free snacks as well as full-scale lunches twice a month. A masseuse comes in regularly to work on their heads and necks."

One can only imagine the reactions such calls receive, even though new hires are trained extensively. "To listen to even a small sample of DCM's calls ... is to reveal the wages of misery, right down to the penny," writes Streitfeld.

I haven't heard any of those calls so I can only hope the callers allow a sufficient amount of time for the grieving process and that DCM's collectors are not taking a cue from "Paper Moon" and scanning the obituary pages like modern-day Mose Prays.