Hello! My mom got a Lowe’s credit card 3 years ago and I did not realize she hasn’t been paying it cause she doesn’t remember things anymore. My husband and I moved in with her to help her out financially and physically. She only gets social security which goes straight to her mortgage my husband and I pay all the bills and food for the house. She’s 85 years old and really doesn’t understand much now, it takes her a very long time to comprehend things. What should I do? Should I contact the court about the ADR notice? This really keeps me up every night. Please help!
To me this is an arbitrary thing. A person would contact the creditor and try to work out a payment plan or try to reduce the debt. Since your Mom has dementia, she is not capable of doing this.
«credit card debt cannot be garnished from Social Security benefits. Social Security benefits are protected from commercial garnishment by the federal Consumer Credit Protection Act. This means that creditors and debt collectors cannot seize Social Security benefits to pay credit card debt or other commercial debt."
Since your Mom only receives SS seems she cannot pay the debt anyway. You are not responsible for her debts. The creditcard company could put a lien on her house but I read that is rarely done. It means going to court and paying to have the lien placed. Does Mom owe that much to make it worth their time and expense?
I am surprised Mom hasn't been getting collection calls. The Creditcard company has probably sent her debt onto a collection Company. These people can be ruthless. But there are strick laws to protect Mom from them. I may do what Alva said and ignore this letter. Don't throw it away though. If you start getting collection calls, tell the caller that Mom, because of her Dementia, cannot talk to them. (Before you do that, get info on who is calling) Ask them to not call her again and hang up the phone. Don't you talk to them at all. They will try to get you to take on the debt. By law you are not responsible. If they continue to call, tell them not to call again and hang up. Keep records of the calls and any correspondence you get. You can always put in a complaint to the FTC, Federal Trade Commission.
These Collection companies have bought Moms debt. The credit card is no longer involved. The callers work on commission so they are going to use any tactic in the book to get that payment. Some tactics are not legal. So, for now I would ignore them. If Mom get a summons to court, then you may need a lawyer to send a letter to the court that Mom has Dementia and can't be there. Also, she has only SS as income. That info may just get the suit thrown out of court.
You do not mention what legal documents are in place. What the legalities are for her protection and yours.
Are you POA? If so, is that an ACTIVE POA with you now the signee at her bank?
Who is managing her finances, her mortgage payments, her utilities and insurance?
And to be honest, why does an 85 year old have a mortgage now? She should likely be selling whatever equity is in that home and using it for ALF, with you as POA managing her payments to said ALF and her finances in so far as assets from the home.
It seems here that the very basics are not in place. I truly worry about you using your own money. What about when you're both old? It takes an entire LIFETIME of care, luck and coupon clipping to get to an age where you are safe from the wolf at the door when you're too weak and aged to slam it shut.
You have a discussion now to take place about the basics. Meanwhile don't worry about Lowe's. They can pound sand. They can AT WORST get a judgment in court that will put a lien on her home that will be paid when said home is sold; that's the extent of their power. AND they can RUIN her credit, which, to be honest, is a good thing in this case. If you get bill collectors calling tell them mom is mentally failing and cannot speak on the phone. That simple sentence then hang up.
WARNING. WARNING. WARNING;
WHATEVER YOU DO, NEVER MAKE A PAYMENT YOURSELF with your own money; this is called ASSUMING THE LOAN and will make it "all yours".
Best out to you. Stop worrying. Her SS is judgment- proof (cannot be touched by creditors) and it sounds she has little else. No one will jail mom. They don't want to take on her medical care at this point.
"The short answer to your question is "yes," ADR could sue you for the unpaid debt. Whether they can collect any money from you depends on how you respond.
Here's three (3) tips for you:
1) Keep a contact log of when and how they attempt to contact you, including any documents they send you.
2) If they do file a lawsuit against you, then make sure you file an answer to that lawsuit in the court where they sued you, and do it within the twenty (20) or thirty (30) days you have to do so. But, do not admit to anything in the lawsuit. Be specific about every denial to every fact they allege. Make sure you keep a copy of whatever you file. Also make sure you serve a copy of whatever you file on ADR's attorney.
3) If you think you are in over your head, then you should contact a Consumer Rights attorney. There aren't many like me in private practice, but we're out there. Also, you may want to try to speak with a legal aid organization that could give you brief advice and counsel if you qualify."
I'm not an lawyer. If I were you I'd make sure to have your Mom assign you as PoA and then get her in for an exam by her primary doctor, specifically (and discretely) requesting she be tested for memory and cognitive impairment. Then have her clinic put the diagnosis of sufficient impairment needing the intercession of her PoA on clinic letterhead and signed by the doctor.
Beyond the cc debt issue, living with a parent if you don't have any ability to legally manage her affairs will eventually turn into a poop show. Just read the multitudes of posts on this forum from loving and well-meaning but clueless adult children who descended into this preventable chaos.