We were estranged from my husbands mother for 5 years. They started talking 4 yrs ago and after a year she fell, went to hospital and they wouldn't release her to go home without someone staying with her full time. I took on that responsibility. We became POA's and took over her affairs. She was 3 months behind on her mortgage and 10,000.00 in debt on her credit card. We have paid some of it down but with her mortgage and medical bills and regular bills we cant pay it down. She gets a SS check ( not much) and now is on Hospice. With just a few months left.. We have one income and our own bills... Credit card company still calls daily and wants the card paid off. Are we responsible for her bills? Oh did I mention she hasn't filed taxes for 2 yrs before we took over as POA?
Interest accumulates as per the agreement with the card when it was initially sent to you, late fees will also mount up.
https://www.thebalance.com/joint-account-vs-authorized-user-960212
Momof5and8, are you familiar with the Fair Debt Collections Practices Act? I skimmed the earlier posts and didn't see it mentioned, so hopefully I'm not duplicating anyone else's response.
The FDCPA establishes terms for collecting on debts, and also establishes rights of the holder.
If debt collectors are still calling, they're likely not going to stop if their calls are answered. If you've gotten a written letter, the credit card holder (your mother, assuming she's the sole authorized party on the card), or given her situation, someone who's been granted proxy authority under a DPOA or POA can and should respond on her behalf. That should be emphasized in the response letter.
I haven't checked the statute recently, but it used to require responses w/i 30 days of the date of receipt of the letter. Your position would be that your mother is "judgment proof" (if this is the case), i.e., has no funds to pay on the debt. Therefore it's not collectible. Period.
Then don't respond to any calls or any further harassment letters w/o referring to the 30 day notice response.
If you want to confirm the terms of the FDCPA, you can usually get nominal free advice through Senior Centers which have attorneys hold short information sessions with elders in the area.
And, PLEASE, do not take the credit card company's calls.
Your MIL may not have had to pay income tax if all she had was SS. My Mom and MIL both received letters saying they no longer had to file because their income was low. SS is not taxable if income is under 30k. Both my MILs brought in about 20k a year. Most of it SS.
Tell the collections agencies they are not to call you again. That Mom is on hospice and you are not responsible for her bills. If possible, block the numbers. Once you tell them not to call, they are not suppose to. Keep a record. You can report the, to the FTC. There are rules that collection agencies have to follow.
Right now keeping her Mortgage going is the most important thing and paying Medical bills. Once she is gone though, they are not your responsibility. If u sell the house, the proceeds can be used to pay off her bills. If there isn't any then they can't be paid.
As with all things, do not take the advice of those of us on the forum, but rather pass them by someone knowledgeable, a lawyer. That is something that you as POA can pay for, an hour of time with an elder care attorney.
Good luck with resolving this issue.