How Theresa Hatt Caused The Financial Crisis

[kpete]

How Theresa Hatt Caused The Financial Crisis
By Zachary Roth - February 6, 2009, 11:23AM
Last month, Theresa Hatt died at 52, after a brief struggle with cancer.

Hatt, who lived in Portland, Maine, and worked for the city of Scarborough, had had several credit cards in her name. So, shortly after her death, Hatt's son, Paul Kelleher, began the sad task of calling his mother's creditors, to inform them of her passing.

The calls were uneventful, if depressing, until Kelleher got to Bank of America. Here is how he says his conversation with a representative of the company's estates unit went:

Paul Kelleher: Yes, I'm calling to inform you that my mom died on the 24th of January.

Bank of America Estates representative: I'm sorry. Oh, it looks like she never even missed a payment. That's too bad. Well, how are you planning to take care of her balance?

PK: I'm not going to. She has no estate to speak of, but you should feel free to just go through the standard probate procedure. I'm certainly not legally obligated to pay for her.

BOA: You mean you're not going to help her out?

PK: I wouldn't be helping her out -- she's dead. I'd be helping you out.

BOA: Oh, that's really not the way to look at it. I know that if it were my mother, I'd pay it. That's why we're in the banking crisis we're in: banks having to write off defaulted loans.

more at:
http://tpmmuckraker.talkingpointsmemo.com/2009/02/how_theresa_hatt_caused_the_financial_crisis.php

[Sabriel]

1. Why does he hate his mother so much?

Isn't she worth a little payment, Ungrateful Son?

Seriously, what kind of person would ask a grieving family member to pay a bill he didn't have to? Scum....

[Debau2005]

5. This happened to my brother and I

My father filed bankruptcy a few years before his death, but was still given about $35,000 in credit cards after the bankruptcy. Perhaps the credit card companies should have done a more thorough check!

We were told by an attorney friend, that his debts were not ours. We sent them the death certificate and a letter. They sent threatening letters and probably called his disconnected number. We ignored them and finally they went away.

They can't come after life insurance. And since my father had no estate, there was nothing to probate.

[JoDog]

12. "a more thorough check"

Actually, after your dad's bankruptcy, he probably looked like a good credit risk. Once the case is closed, all that debt was taken off his credit report, which increased his credit score. And since he could not file for bankruptcy again for several years, they knew they could have him on the hook for a while.

Banks and collections agencies are getting despirate to collect anything. Remember, the phone operators at these places often get retained or get bonuses based on what they collect. So is it any surprise that many of them are willing to press the line of what is legal or appropriate? They are betting that the consumers they push do not know their rights or the law.

And yes, the debts of the dead do not roll over to their survivors. This is not Dickensian England. The bank is entitled to what they can claim out of probate, no more. Or, if the debt is secured by property (an auto loan) they may be able to repo the property. That's it.

[KoKo]

6. What if the mother had taken out credit cards that she couldn't afford?

We all know these banks were upping the limits to allow more and more people who didn't have the income to charge more and more. Then the offers that would allow you to pay off one credit card by getting a new one with a higher limit. This son may not be wrong in what he's doing. Maybe he just can't afford to pay off what his mother borrowed that was over her income level with the blessings of the banks?

:shrug:

[CrispyQ]

9. ?

The son is definitely not wrong in what he is doing. The debt isn't his. Even if he could afford to do so, he is under no legal obligation to pay his mother's debts. Her debts are paid out of her estate & if she has no assets, the CC company is SOL.

Fucking asshole credit card companies. They want us to work with them, but if our payment is 2 hours late, they stick us with an excessive late charge. For four weeks after my mom died, they called my sister for less than $300!

[Missy Vixen]

2. Let's wonder how much of this crap happens every business day in the US

In the meantime, B of A has a significant public relations problem to start with; imagine how great it will be when this story hits the mainstream press as well...

[CoffeeCat]

3. Bank of America is corporatized evil from hell...

Bank of America lobbied Congress to relax credit-card regulations that screwed the consumer
and gave credit-card companies and banks unprecedented power over consumers.

Bank of America made untold profits as consumers spent money--using their credit cards--and
paying outrageous late fees and interest.

Now, that consumers are taking back their power and paying off their debt--instead of burying
themselves in debt--Bank of America has the never to make US feel guilty???

Bank of America made billions off us us. Now, they're profits are decreasing because consumers
are taking a hack saw to the ball-and-chain of debt that has crippled them for decades.

Now....Bank of America blames us.

They can just suck it! Yes, it was lovely that you were able to make money off of all of us
for so long. However, the party is over, Bank of America. Deal with it.

[OwnedByFerrets]

10. 100% agree

[Beavker]

4. Finishing line from PK:

Hey, I'm just letting you know so you can take more Taxpayer dollars, some of which are mine and my late mother's and begin the write off procedure. By the way, Go F!@# yourself. Click.

[Dreamer Tatum]

7. Gotta admire the CFOs and CEOs who find time to work in the call centers

Please. One jackass phone rep now represents the editorial position of the entire bank? I don't think so.

That said, B of A can suck it. They'll outsource the debt to a probate collector, and if there's any dough in the estate, they'll get a taste. My response would have been, "You know what? You're not in a position to do anything to anyone. Oh, wait. You can always go fuck yourself."

[Bake]

11. But that probably IS the "editorial position" of the bank.

Do you think this guy just made it up? The call center people are doubtless trained to try to get the money any way they can. I'm sure this scenario has come up in the training.

Bake

[JoDog]

13. As I stated above

the call center folks are put under extreme pressure to produce. There is also a monetary incentive to push people to pay. While this is not an excuse, it is an explanation. These people are betting that the consumers they bully will not know the law. A few weeks ago, one of them lost that bet when I got him fired for third-party debt collection violations.

[Metta]

8. What do you freaking expect from banks? This is why Jesus threw the moneylenders out of the temple.

Happy karma banks and Republicans.