The Consumer Financial Protection Bureau on Friday turned its spotlight on the risks of attempting to collect on unpaid medical bills from surviving spouses, highlighting potential legal violations by collectors who may ignore legal nuances.
By the numbers:
- 1.7 million: The number of adults in the U.S. widowed within the preceding 12 months in 2022
- 71: The average age of new surviving spouses
- $28,749: The average amount of unpaid medical bills for new surviving spouses
- $15,785: The average amount of unpaid medical bills for the rest of the population
The big picture: The CFPB is concerned that debt collectors may be misleading surviving spouses into paying deceased partners’ medical debts when they’re not legally obligated to do so. Some states, like Minnesota, have enacted laws ensuring that spouses aren’t automatically liable for their partner’s medical bills. In contrast, other states may hold surviving spouses accountable under narrow circumstances, depending on their ability to pay or if they explicitly agreed to the debt.
Despite these nuances, the CFPB notes that some collectors demand payment without investigating these critical details. The Bureau is now warning that this can constitute a violation of both state law and the FDCPA.
Between the lines: The CFPB’s stance reflects a broader push to protect consumers from what it views as unfair debt collection practices, especially those targeting vulnerable populations.
Key points:
- State laws vary on surviving spouses’ responsibility for deceased partners’ medical debts.
- Some states explicitly protect surviving spouses from personal liability for these debts.
- The CFPB argues that collectors may not be considering specific legal nuances when pursuing these debts.
