Deceased Account Collections Requires A Specialized and Compliance-Based Approach

Linda Straub Jones

The credit and collections industry has been receiving an increased amount of attention lately from the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC) and consumer attorneys. It is more important than ever before not only to know the status of your consumers, but also to have a plan on how to handle accounts as they move into different statuses. One account status that should not be overlooked is that of a deceased account holder. With the aging of the baby boomer generation (the oldest of which are now in their mid-sixties), there is an increased population of older consumers, and thus older debtors. As these individuals age there comes the unfortunate increase in deaths.

Having a plan in place for how your company will manage collections of deceased account holders, once they are identified, will go a long way toward making sure this delicate situation is handled with extra care. It is important to note that the baby boomer generation is far more credit savvy, and will expect there to be a disciplined process around this inevitable event. Additionally, it is essential that your plan is not only well thought out, but that it is in compliance with regulations.

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