Calls 3 times a day but I don't answer them. Thought I would see where this # is from but looking it up on internet

NEW YORK (CNNMoney) -- Nobody wants to remember a deceased family member by the debt they left behind, but many creditors certainly make it difficult to forget.

Denise Townley was appalled when she received a letter from her mother's credit card issuer less than two weeks after her mother passed away.

"We have recently learned that [your mother], a valued Discover Card customer, has passed away. Please accept our sincere apologies," stated the letter from Discover, which Townley sent to CNNMoney.

It then offered her or another family member the "opportunity" to assume the balance on her mother's credit card and offered a special introductory APR of 0% for the first six months (the APR would increase to 13.24% after that). If Townley wasn't interested in taking over the account, then the bank wished to discuss how the estate planned to pay off her mother's credit card balance.

Confessions of former debt collectors

Confused and concerned that she was on the hook for her mother's debt, Townley called Discover. When she asked a probate specialist there how they knew her mother had passed away, she was told that Social Security furnished the information.

"I find this not only ethically abhorrent, but also irresponsible and insensitive on both parties' parts," said Townley.

But while it may be "ethically abhorrent," it's not illegal. Banks are within their rights to seek payment for debts owed by a deceased borrower, and the estate is liable for the debt if it has enough money.

"We understand that settling the affairs of loved ones is difficult," a Discover spokesman said. When contacting family members about the unpaid debts of deceased card members, Discover states upfront that payments on behalf of a deceased relative are voluntary, not required, he added.

How soon is too soon?

Financial institutions typically receive notice of a person's passing from the Social Security Administration within a month or two, according to a recent review of the agency conducted by the Social Security Administration's Office of the Inspector General. Yet, in some cases, banks find out even earlier than that.

Because it's likely the deceased carried multiple debts, creditors often race to be the first to collect money from the next of kin or the estate before it has all dried up, said Gerri Detweiler, a debt specialist at credit card research and comparison site Credit.com.

Hey Social Security, I'm not dead!

"The longer a creditor waits to get paid, the less their chance of getting paid," she said. "And unfortunately, they may find that it's easiest to elicit payment when bereaved relatives are still trying to sort everything out."

During her husband's wake, Deborah Crabtree said she had set up an answering machine and put it on speaker phone so that loved ones could leave their condolences, according to the complaint she filed against Bank of America.

But instead of hearing only the voices of friends and family come through the speakers, she said a debt collector from Bank of America Home Loan Servicing called every 15 minutes and left harassing messages about the debts her husband had left behind that everyone in the house could hear.

Even after the wake, Crabtree said Bank of America collectors called her as many as 48 times a day -- and even threatened to foreclose on her home, according to a lawsuit she filed last month against the bank.

Crabtree, who lives in Honolulu, said she had told the bank that she would pay the debt as soon as she received her husband's life insurance check. However, the agents told her that since the calls were computer-generated they couldn't stop them until the debt was paid.

Extreme debtors

Crabtree's lawsuit claims that Bank of America violated state debt collection laws. Her lawyer, Gary Shigemura, said the bank has not yet responded in court.

For its part, Bank of America declined to comment on the particular case, but a spokeswoman said that in general, the bank informs family members when they aren't responsible for the debt of a deceased relative.

The Federal Trade Commission recently declined to impose a "cooling off" period after a death, during which creditors wouldn't be allowed to go after a debt.

The FTC said it was unnecessary, since its rules under the Fair Debt Collection Practices Act already prohibit third-party debt collectors from collecting debts at "inconvenient times" and harassing customers.

Yet, the FTC only governs third-party debt collectors, not the banks -- which are regulated by individual states. And while many of the states have laws similar to the FTC's, the terms "harassment" and "inconvenient times" can be interpreted very differently by consumers and creditors, said Detweiler.

Do you owe money for the deceased's debt?

Often mourners don't have enough time to grieve their loss, let alone assess the debts owed by the deceased -- and whether or not they're on the hook to pay for it.

Some debt collectors make family members feel responsible for debt owed by the deceased by asking them questions about whether they were the one who paid for the funeral or took care of other business related to the person's death, said Detweiler.

"They don't necessarily state that you are liable for the debt, but they blur the lines to make you feel like somehow you are responsible for it, even if it's just a moral responsibility," she said.

Three signs you're headed for extreme debt

Most people won't have to pay for their deceased family member's debts unless they co-signed on the loan or it is a debt from a joint account. However, those who live in community property states, where property and assets acquired during a marriage are considered jointly owned, are liable for the debt, said Detweiler.

"If you don't think there's a reason you should be legally liable, you'll need to look at money in the estate -- but don't start payments until you figure out whether there's enough money in there to pay it," she said.

As the executor of the estate, you can request the credit card balance of the deceased's account. Under a provision of the new CARD Act, the issuer has 30 days to provide the balances and can't charge any penalty fees or interest if you or the estate pays off the balance within 30 days after it provides that information.

If the estate doesn't have enough money in it to pay the debt, the creditor is often out of luck.

First Published: September 1, 2011: 12:55 PM ET

http://money.cnn.com/2011/09/01/pf/debt_death/index.htm

I also received a call from the famed "DCM" attempting to collect an outstanding balance on my mothers Discover card after her passing. I was very clearly told by Discover when I reported her death that I was not responsible for the debt since she had no will or estate and no probate to file. The person who called continued to ask questions about ways to collect this even after I informed her that my mother had nothing. She requested information about life insurance benefits and amounts received. I did not give her that information and reminded her that benefits go to beneficiaries and ar not part of an estate unless a trust had been set up which I had already told her was not the case. she offered me a reduced balance to resolve the matter and again I reminded her as she already knew that I was not responsible for the debt. She stated that they would continue to search throughout my mothers affairs to see if there were any funds to pay this. She was very persistant even knowing that I am not responsible in an attempt to get me to pay this. I also say shame on Discover and DCM for annoying people so about this especially so soon after a loss when its very easy to see for them that my mother had no assetts.

I worked for DCM for many years. Some of the representatives do use scare tactics but basically all they want to know is if there is an estate/will/probate/trust and if it will be recorded with the deceased county (of residence) on file. If so, they want to get the information of the attorney or some people know there is an outstanding amount left on their loved ones account and choose to pay it off for a reduced amount (they will ALWAYS reduce the debt, and are authorized to go down to 50% by most Creditors). You should not do anything if you are not the one that should be handling matters and the best way to get rid of them is to cease them from further calls or give them information to your attorney. If you will be opening the probate they will likely file a claim and the credit card will be paid anyway but pro-rated (or not) depending on the amount of assets in the estate. Hope this helps. Sorry for your loss.

Just reveived a cll from the famed "DCM Services" about my dearly departed father...

Told them I am not willing to disclose any information, but I will pass thier contact nmber along to the person handling his affairs..  

Oh, and I am more than aware of the FDAPA and FTC's enforcement..  They can go push rope..

Caller left message on machine...wanted the personal representative for ineligable first name with correct last name. Sound was very static. Pretty sure I won't be calling HER back.

Caller identified themselves as representing DCM Services (debt collection agency which seems to be known for going after estates of deceased persons - there exist articles on them).

When they called the number I was at, they asked for Family or Personal Representative of <deceased person>.

DCM Services supposedly on behalf of Discover Credit Card Services. Took forever for the woman to even find the account. When I adviced her that there was no estate or trust and no need for will probate she began using scare tactics to try and make me pay for my father's credit card balance. I informed her that I know the law concerning his debts and that I'm not responsible for them.  For shame...this is one more reason I won't have a Discover Card.

Sounds like they are looking for relatives to pay the debt of the deceased.  

PER THE FEDERAL TRADE COMMISSION WEBSITE:
FAMILY MEMBERS ARE NOT RESPONSIBLE FOR PAYING THESE DEBTS !!  However Collection Agencies will TRY AND MAKE THEM PAY

http://www.ftc.gov/opa/2009/07/deceasedebts.shtm

For Your Information: 07/31/2009

Who is Responsible for a Deceased Relative's Debts?

If your relative leaves unpaid debts when he or she dies, do you have to pay?

According to the Federal Trade Commission, the nation?s consumer protection agency, surviving relatives usually have no legal obligation to pay the debts of a family member who has died.

Generally, that person?s estate is responsible for paying his or her debts. But if there isn?t enough in the estate to cover the debts, they typically go unpaid.

After a relative dies, debt collectors may contact family members and ask them to pay their loved ones? debts.

The rights of surviving relatives are covered by the Fair Debt Collection Practices Act, which the FTC enforces. The FTC has developed a new consumer alert about this issue titled Paying the Debts of a Deceased Relative: Who Is Responsible? To learn more, go to http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt159.shtm.


The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC?s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC?s Web site provides free information on a variety of consumer topics.
MEDIA CONTACT:
Office of Public Affairs
202-326-2180
(FYI deceased debts)

I got the same call and no letter - these people are annoying.

Check out www.dcmservices.com.  This is not a typical collection agency.  They appear to be a specialist that only works probate accounts.  My guess is that most of the accounts that they receive are "valued" customers who have not paid their debt because they have passed away.  I wouldn't get too concerned.

Got another call from DCM Services today. Today it was from a girl named Mary. I told her I do not know who John Peacock is. She replied "oh, you dont live on state street? I said no and asked them to remove me from their list.

dcmservices.com

Got a call from this number. Girl introduced herself as Sue Davis the
personal representative of the late John Dalton Peacock, she claimed she was calling from DCM Services about a letter that they had sent me?