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Mom is 92 yrs has been in skilled nursing home for 2 years is on medi-Cal (Calif). All Soc Security goes to her care except $35.00. She has credit card debit. I originally talked to all creditors explained situation, they all have my POA. Sent all a certified letter with return signature receipt. Now after almost a year I received a collections notice from one. How do I handle it?

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Tku u all for your input. I am POA. Mom has no money or assets. I know I can't be sued. She can't pay. She being judgement proof means social security can not be attached for credit card debt. Her money goes to her care. I'm being honest & informed all creditors. I've dealt with the original creditors & the collections agencies after that. But then about a year went by & I didn't hear anymore from anyone & now one company collection agency sent out a letter. I was originally asking how to deal with it. I believe I got some good input. Tku.
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Labmom is not a responsible party here. She had no obligation to deal with her mothers debt. If Labnom was responsible for her moms finances, perhaps, but the way I read it there are no finances to be managed.

The credit collectors have no basis to sue Labmom any more than they could sue any of us. By inserting herself in it, it will encourage the credit companies to think she is a responsible party.
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Joann, being judgement proof is not a defense in a court for failure to pay bills and the creditor does not have to write off debt just because they were informed of a decision or the fact they received POA paperwork. I never stated children were responsible for debt.

Companies write off debt based on certain factors and timing. There are strategies in doing so to which based on ratios and percentages for the creditors financing which I really do not expect you to understand.

Ignoring things compunds problems. Depending on the creditor, they may sue. There is still a judgement which can be discharged on a 1099. The 1099 is taxable oncome and could affect Medi-cal in the future.
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JoAnn29 Dec 24, 2018
I do know what you are talking about when you are talking about percentages. I worked Accts Receivables/collections. My credit manager, like you said, was only allowed to write off a certain percentage each year. Our loans were based on customers paying on time. Our customers spent millions a month.

Sorry, my statement concerning children was not meant for you. Just making a point.

Ok, so by suing they can then write off causing it to become income. And that income can put the person over the limit they allow. What a shame. Hope she doesn't owe a lot.

Maybe she should talk to a Credit couselor?
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Labmom, I was in collections for private companies trying to get customers to pay up. As such, I had to be nice since we still wanted their business. We tended to work with them.

In my opinion, when you first sent proof to the original creditor that Mom was in assistance in a NH, they should have wrote off the debt. It should not have been sold to a collection agency. But looks like it has been.

I would just ignore the letter at this point. If they do call, explain the situation and then ask that they don't call you again. If they continue to call, then contact the FTC and report them. There are rules they are to follow and can be fined if they don't.
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Labmom Dec 24, 2018
Tku for the input. The thing is only 2 credit companies may have my personnel phone number. The collection agency that calls me I have tried talking to the lady, I did get a chance to explain the situation she continued to call about once a week still wanting my mom. I told her I handle all her affairs & if they need POA to go back to original creditor. I don't know if the letter I received is the same company that calls me. In the beginning I was willing to settle all 4 of them but we could not agree on a percentage. I can't afford to pay full amount. I know I'm not responsible. I understand they are just doing their job. I'm just trying to handle correctly.
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Tacy, who are they going to sue. Children are not responsible for parents debts. It would have to be a large amount to make it worth them going thru the process.

I would ignore. These collectors will hound her. There r FTC rules they are to follow, but they don't. For one thing, they can't threaten to sue and then not do it.
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It depends, who is the original creditor? There are certain ones whether your mom is judgement proof or not that will sue, others are more talk?
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Labmom Dec 24, 2018
Credit card companies. 1 1/2 years ago when I contacted them I tried settling. One company wrote off. The other 4 did not & we couldn't come to an agreement of them taking a lower amount to settle. At the time amounts were approx $1100.00 with one about 1600.00. Of course now with late fees & penalties the amount is higher. Its been a year since I've heard from them. So I realize this is just a new collection agency trying to collect. I dont think they even look at her age why bother with a 92 yr old on limited income if she was 25 I would understand. CC companies take a risk & they know it why give a limited income individual a high credit limit.
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I wouldn’t. The new letter is probably about one of the old debts that was sold to another collection agency this a letter from a new source about the same thing.
Tear them up and ignore them.
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Reply to Shane1124
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Block the numbers, if they won't talk to you without you giving them personal info that is none of their business. You have already dealt with it to a done. Don't talk, I would give them the main number at the NH and make sure mom has no phone in her room for a while.

Sheesh, the lowlifes in collections.
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Labmom Dec 24, 2018
Tku appreciate your input but no way would I give them the number or where abouts where she is. I don't need them trying to contact her in person & upsetting her.
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Ignore it.
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If the original creditor has sold the debt, the collection agency is trying to recoup What they paid for the debt. So you are not dealing with the original creditor. Like said, ignore it.
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Reply to JoAnn29
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Ignore it. As you know you are not personally responsible for the debt and Mum has no money to pay it off.

In time the debt will be 'sold' to collection agencies and they will sell it on too. After 7 years it is expunged, but that does not stop collection agencies from trying to collect.

Part of the reason CC companies charge such high interest is to cover the cost of noncollectable debts.
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Labmom Dec 23, 2018
Tku yes I know I'm not responsible. All original creditors were told of her situation. Yes they sent debt on to collections agencies & I sent some collecton agencies the POA just to be able to tell them the situation. It's been a year & I received a collection notice from yet a different agency just wasn't sure if I should mail them copy of original letter I sent to creditor. One collection agency calls my phone # and will not speak to me without me sending them POA but they also won't tell me who they are. I tell them if this is a collection agency to contact the original creditor & get POA from them. My mom is judgement proof. But my husband thinks I should respond to the latest letter somehow.
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