Feds try to stop unlawful nursing home debt collections

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — A federal report says nursing homes and debt collectors are flouting a law that prohibits them from requiring friends and family of care home residents to be responsible for costs of the facilities. The Consumer Financial Protection Bureau says friends and family members have had to declare bankruptcy, had their wages garnished and their homes repossessed. That’s after they signed unenforceable contracts called “admission agreements” with nursing facilities, resulting in them being held liable as third parties for their loved ones’ nursing home stays. An increase in complaints has prompted federal officials to send a joint letter to nursing homes and their debt collectors reminding them to follow the law.