Losing a loved one is tough, and dealing with their medical bills on top of that can feel overwhelming. In many cases, surviving spouses are left facing a mountain of debt, dealing with a complicated legal system, and only a fourth of them are still earning a paycheck.
But wouldn’t you know it, debt collectors have no mercy and no regard for someone in a fix like this and the Consumer Financial Protection Bureau (CFPB) has found itself buried in complaints from surviving spouses about debt collectors getting aggressive, demanding payment for their deceased partner's medical bills.
“My wife died of a [heart condition] at XXX Hospital…I signed no paperwork on the days of her hospitalization. Since then, no one has reached out to me for payment including the hospital or [doctors],” is how one surviving spouse began their complaint.
“However, Colorado [provider] has been hitting me with numerous small bills (13 so far) totaling $8XX. As each has gone unpaid (my attorney said DO NOT pay unless you are prepared to shoulder all the previous bills), they have referred the collection to [debt collector] in Arvada, CO. I have spoken with them on numerous occasions and informed them 'Chapter and Verse' regarding Colorado law but they said 'they don't care' and continue ruining my credit. At the time this started my credit was 780, went as low as 550 (all due to them) and is slowly back to 680 with almost no debt. I have reached out to the reporting agencies on numerous occasions but no joy.”
The system is broken, but there are a few ways out
In its overview of the problem, the CFPB said that the system is broken and the medical billing and collection system is filled with errors.
“When debt collectors try to collect a patient’s medical bills from a surviving spouse, they may be collecting on bills that were already incorrect or in the wrong amount. And when debt collectors incorrectly claim that a survivor is financially liable for their spouse’s medical debts, that is just another example of inaccuracies in the medical billing system,” the agency commented.
The CFPB doesn’t want to leave anyone out there trying to fight this fight by themselves and said it will continue to chase down any debt collector who’s strong-arming someone trying to collect amounts that are not actually owed.
“We will work with state regulators and law enforcement to help identify debt collectors who attempt to collect on medical debts without regard to state and federal law, and to ensure that surviving spouses are able to easily understand their rights and responsibilities,” it said.
But, until then, surviving spouses might still come face to face with a nasty-acting debt collector. If that happens, the CFPB reminds consumers that there are four ways surviving spouses who are facing medical bills know what to expect and take action when and where they can.
When a loved one dies and debt collectors come calling, surviving spouses should not assume they have to pay. Read our advisory for tips on dealing with debt collectors.
Some nursing homes attempt to make caregivers personally guarantee payment of a resident’s bill as a condition of admission. This is generally illegal.Learn about caregivers’ rights when dealing with nursing home debt.
People who have a debt in collection or have been sued by a debt collector can find a reputable lawyer to advise or represent them. Here are some ways to find a consumer lawyer.
People who have experienced problems with debt collectors or credit reporting agencies can submit a complaint to the CFPB at cfpb.gov/complaint.
The CFPB has also developed a checklist to help people take control of their finances in the weeks and months following the death of a spouse or partner: Taking Control of Your Finances: Help for surviving spouses.