My sister (72yrs old) gave me her power of attny. I have just found out that she is deliquent on a citbank credit card in the amt. of $14,300. she is now living in a nursing home and I am handling all her affairs. she is not senile, but not capable of dealing with a collection agency. (Pioneer Credit Recovery) Actual balance on the acct. was $7000 when she couldn't afford to keep up the payments. At 32% interest the balance has now doubled. Her income from ss and pension is and has been for the last 10 years $1150 a mo. How Citibank could ever have let her have a credit line of $13,000 is beyond me. Even tho I know this account is hers, do I begin with a letter requesting validation? At what point do I ask for a settlement figure?
Why bother doing anything? With no assetts, SS and pension payments being eaten up by the nursing home expenses, Citibank and their collection goons have nothing to go after. Regarding why Citibank even extended her/increased her limit: Somewhere along the line she applied, kept her card in good standing, had a good credit history and Citibank rewarded her with regular credit line increases.
I wouldn't bother with it. Not to be rude or insensitive but, who cares if she owes it. Tell Ciitbank to piss off . . . it's uncollectable and she has no need for credit.
Are you guys sure? I know the SS is untouchable, but what about the pension? You mention her income, which obviously all goes to a nursing home, but no where does the OP mention that she has no other assets... The OP could very well have assets that are being drained monthly to make ends meet, until such point as she is insolvent and Medicaid would pick up.
In all cases? Or in cases where there are no other funds for payment? And even if it is the case that SS and retirement go directly to the home, we still aren't clear if there are other assets. Citi doesn't hesitate to sue...
The OP did not mention anything about her sister having other assetts. So your "what if" questions/comments are speculative, at best.
Of course they are speculative as I stated from the beginning. But then again, I wouldn't want to tell people to ignore a 14K debt without full information.
My sister's debt thanks all for your input. Sorry I didn't give you all the info you needed to advise me. We sold my sister's house to fund the cost of her living in the nursing home. Her assets have not been turned over to them. We are still in control of her money (approx. $200,000) Seems like a lot of money, but not when she could easily live another 20 years. I just really need to know if I should go thru all the steps (validation, etc.) if I know darn well this is her account or just ask for settlement. I am willing to concede the original debt of $6000 or $7000, but I can't stand the thought of letting her get ripped off by outrageous credit practices that charge 32% interest. For pete's sake, she might as well borrowed the money from a loan shark! She's terrified that they are going to show up at the nursing home and cause a scene. She's afraid to answer her phone. This is just wrong! I have to get her out from under this mess, but I know the collector doesn't want to hear any sad stories, so again, how should I proceed?
I work at a LTC facility. (nursing home). So you are doing the private pay route with your sister until her money runs out? Are you going to apply for medicaid at that point? Residents in nursing homes who are on medicaid usually are only allowed $30 a month for themselves to spend etc. (I know it doesn't sound like a lot, but we provide almost everything!)Any SS or pension checks must be sent to the nursing home to cover cost of care. But that would not apply to you until the $200,000 is used up and your sister is on medicaid. Don't know if this info helped but I know nursing home and finances is very confusing.
