One of the weakest groups in our society at present are the elderly, and one of the prime reasons behind them being weak is their pride. Unfortunately, debt collectors are playing on this pride, often collecting on debts in situations where consumer protection legislation has made their actions illegal. I don’t mean any disrespect to our seniors when I label them as weak either. After all, they are really trying to do the right thing by repaying their debts.
The problem is, retirement incomes for our elders are fairly low. In many cases, if a retired person paid every one of their bills on time, they would have little if anything left for food or medical costs. Over time, they do start to fall behind in their repayments until they reach a point where the only bills they are paying are the ones that are knocking on their door.
Even then, there are cases where elderly debtors have handed over assets, often valued at far less than their real values in lieu of their next payment. Those debt collectors don’t care – they sell the item, pocket the profits, and make the debt payment. What is unfortunate is that most of our senior citizens already have three options that would see them gain relief from unfair debt collectors.
The first is consumer protection legislation. That is an area where we can help our elderly relatives. Be sure they are aware of their rights and that they are ready to stand up to debt collectors. The second involves debt default judgements – in most cases, our seniors are protected (or at least their assets are) from any judgement. Finally, bankruptcy is a real option. Many seniors qualify for a zero-asset Chapter 7 bankruptcy – this means their debts will be wiped, debt collectors stopped from collection, and the senior loses nothing but the cost of filing their petition.
If you feel an elderly relative is floundering financially, help them out by ensuring they receive all the consumer protection that the law provides for them.
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- More Seniors Turning To Bankruptcy
- Protection Bureau Targets Rogue Debt Collectors and Credit Reporters
- Dealing with Debt Collectors: What Not to Do
- Harvard Professor Warren to get Consumer Financial Appointment Predicted
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