How to handle the debt of someone with dementia as their POA?

They can only get out of him what was owed on the car minus what they received reselling it.

At the time this happened had Dad been diagnosed with a Dementia and this made ur POA effective.

"they met up with my dad alone without the knowledge of my mom or myself when we were at work" Are u saying that the dealership salesman came to the home and did not thing that was kind of funny? I blame the Dealership. The salesman had to notice Dad was just not right.

I have sent u a Private Message.

I don’t think he needs great credit at this point in his life I’d just not worry about it.

If they called and your Dad sent in payment then the statute on collecting this debt just swung back to the beginning and they have years to make him pay. Why, if he is no longer competent to do so is he managing his money? The POA should be doing ALL his finances if he is suffering from dementia.

As I said before, the worst they can do to your Dad is ruin his credit. No one should care about that at this point as he isn't going to be taking out loans and shouldn't have access to credit cards. They cannot tough his social securiity funds.

It is irrelevant really at this point how Dad came to sign this. It was signed and it does exist.

What's important now is that the POA act as a fiduciary to protect Dad's funds, to keep meticulous records of every penny into his assets and every penny out of them, giving Dad a small spending account of his own, keeping bills and mail away from him if he is incompetent in handling them.

Update: Unfortunately the family member that did this has no interest in actually paying the debt and knew exactly what they were doing because they met up with my dad alone without the knowledge of my mom or myself when we were at work; we wouldn't have allowed it to happen as that family member is not a responsible adult and we knew better.
My main concern at this point is that they called his house and he gave them a payment for $100 before I was aware of the situation, which came out of our joint account. At the least, I will have to send a cease and desist letter. I'm just not sure how much more we're on the hook for.

You are not responsible for the debt; do not pay anything toward it. And I wouldn't worry about the debt collectors going after your father. Worst they can do is put it on his credit report, which given his age and condition, is not going to change his life.

As for the family member, he or she still can arrange a payment plan with the creditor and do the right thing. Why aren't they doing that?

I am uncertain how your Question to us ended in discussions, but I do agree with Daughter that a visit to an attorney might be a good idea right now. Take all papers you have with you.
Your Dad's funds pay for this via your POA. You are allowed to seek expert advice on his behalf.

YOU are in no way responsible and you should never make any payment on anything in your own name lest they try to say YOU are assuming the debt. If and when you pay sign only your Dad's name followed by your name and the words POA, or Power of Attorney in fact.

Do know that your father, even if a judgement is made in court against him for payment, cannot have his SS or any disability payments attached. They cannot collect on these or confiscate these funds in any way.
And if you do not pay likely the worst that can happen is that your Father's credit can be ruined. As it is unlikely that your Dad NEEDS credit at this time (won't be buying a home or taking out loans anymore) this will have no affect on him. It is quite unlikely any lien will be taken agaisnt a property, but if so it would be collected on sale of that property by Dad's executor.

Your Dad did sign, and that paper will likely hold him responsible for the car payment, but I would bet this is already turned over to a collection agency for non payment; said agency makes makes only pennies on the dollar of these loans.

Feel free, until you speak with an attorney, to say nothing, or to write the company saying you are POA for your father and that he was suffering from dementia when he signed that paper, and still is, and has no funds to pay them. Or say nothing, and let them "pound sand".

You’re definitely not responsible and you need to take dad to an elder care attorney ASAP to both see what, if anything, can be done about the creditor, to fully plan for his future, and protect him financially. The elder care attorney I used was well worth what I paid, as he thought of things I’d not considered. I’m sorry for the loss of your mother and now having to face this mess caused by others. I had similar to deal with, but for me it was after my dad died, and amazingly there were still bad financial decisions he’d been talked into, including co-signing for a car. Sorry to hear of anyone else dealing with it