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Regulators try to stop unlawful nursing home debt collection

The Associated Press

WASHINGTON — Nursing homes and debt collectors are flouting a law that prohibits them from requiring friends and family of care home residents to shoulder the costs of the facilities, according to a federal report issued Thursday.

The Consumer Financial Protection Bureau said friends and family members have had to declare bankruptcy, had their wages garnished and their homes repossessed after signing unenforceable contracts called “admission agreements” with nursing facilities. As a result, they have been held liable as third parties for their loved ones’ nursing home stays.