QUESTION

Is it a break in confidentiality to share information amount someone’s debt?

Asked on May 12th, 2013 on Bankruptcy - North Carolina
More details to this question:
I live in PA. My mother passed away and I signed the contract to be responsible for the bill at the funeral home. Payments were being made by myself. The funeral home didn't want to accept my payments any longer and informed me a lien was going to be put on my home. I never received any other statements or calls from the funeral home. They sent a letter and a copy of the statement to a sibling of mine that I do not speak to stating the outstanding balance. The payments made and that I was in default. Is the funeral home allowed to disclose that information to someone else, as it was my debt and only my signature on the contract.
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1 ANSWER

Yes and no. Creditors cannot discuss debts with third-parties under the PA Fair Credit Extension Uniformity Act. However, you are wrong about your mother's debt. It was NOT your responsibility. This is your mother's debt and is an expense of her estate. The funeral home should file a claim with your mother's estate. You do not indicate whether your sibling is the executor of the estate or even whether an estate was probated. And a funeral home is not a lender. Unless there is a written agreement that payments would be acceptable, the bill is to be paid in a lump sum. You also indicate that the bill is in default. Is it? The funeral home cannot just put a lien on your home. They would have to first get a judgment against you. Is your mother's estate pending in PA? Is the funeral home located in PA? If not, the funeral home may not have been aware of PA law, which applies to original creditors. I can't speak to the laws of states where I am not admitted, but not all states have laws which apply to original creditors like this. You should consult with a lawyer specializing in violations of the Fair Debt Collection Practices Act and PA's equivalent law to see if the law was violated here. If it was, PA allows you to recover treble damages, but rather than sue, you may be able to use that as a bargaining chip. However, if an estate was probated for your mother then the funeral bill needs to be an estate expense.
Answered on May 15th, 2013 at 7:45 AM

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