Would direct payday loan lenders contact a widow to collect on debt the deceased spouse accrued with a payday loan? It is definitely a possibility. There are many creditors who send collectors after widows in their time of mourning. It is a very predatory approach to debt collecting which keeps the payday loan lender in a crowd of many. Just like you might find payday loan lenders who will forgive a debt when the customer dies, you will find others who play by the rules of Fair Debt Collection Practices.
Payday loan lenders as with all creditors should keep best practices in play when there has been a death. When a widow is in the middle of preparing funerals, mourning the loss of a spouse and taking care of the jumbled mess a death can create financially, knowing one's rights is the best protection against the aggressive bill collectors. Finances are the last thing a deceased spouse wants to think about, but it will be something which will need to be addressed.
*Depending where you live, you may or may not have debt responsibilities of the deceased. If your name is not on the debt and you did not sign anywhere, you may not be responsible for the debt. Laws vary from state to state and country to country so you will want to obtain council to have an accurate account for what debt you may or may not be responsible for. Most often, a widow will be responsible for any debt with their name attached. There are specialized attorneys who deal solely with estate matters or a CPA. Don't make assumptions when it comes to financial responsibilities.
No matter whether the widow owes the debt of not, the Fair Debt Collections Practices Act will protect you from harassment, threats and abusive collections tactics. Being in a vulnerable state is an aggressive collector's driving force to put pressure on to settle fast. If they are able to catch a widow off guard without being informed of their rights, they may get paid. A widow in a fragile state of mind is more apt to make payments to lesson what they think are additional problems away.
Settling debt for a deceased spouse will also vary depending on what was stated in the will. If there was no will prepared ahead of time, the assets and liabilities will fall into the hands of the probate court in order to divvy up who gets what. If a widow makes payments unaware of their rights, the collectors will continue to pursue further payments until the debt is paid off. Don't let them intimidate you, pass the problem on to the professionals. When you cannot be your own advocate, then you need to find someone who will protect your rights. Direct payday loan lenders will have to go through the same process as any other creditor. If they want to pursue payment they must follow the same channels as any other creditor. Protect yourself and demand respect and fair treatment. Professionals are there to help you through this time. They will take the pressure of having to deal with financial institutions as well as help protect you from those who do not follow best practices.
