Haunted by Zombie Debt

It is incredible what lengths a debt collector will go to in
an effort to collect a debt.  Over the last
several years, collection agencies have purchased what is
considered junk debt from credit card companies, telecommunication
companies, health club memberships, etc. for mere pennies and
targeted debtors to make payment on this debt that is likely passed
the statute
of limitations.  This debt has become known as “zombie
debt” as it is debt that is not the debtor can no longer be legally
held to pay, and is as if it has risen from the dead, haunting the
debtor. 

Zombie debt is often so old that the original creditor has
completely written it off and ceased all collection efforts. 
Collection
agencies will buy this debt and then begin collection by
manipulating you into making payment, thus reviving the debt, and
in some circumstances making the statute of limitations null and
void.  If you believe you are the victim of a zombie debt
collection tactic, the first step in avoiding the scam is to not
acknowledge the debt.  Do not let the debt collector know the
debt may belong to you and do not make any agreement to pay. 
Make sure to ask for proof of the debt in
writing including the amount of the debt, the name of
the original creditor and any additional proof that it is your
obligation, like a credit card agreement signed by you or an
original contract-but stand your ground in stating you do not
accept responsibility for the debt until it is proven
yours. 

When dealing with debt collectors attempting to collect zombie
debt make sure not to fall into their trap.  Collectors will
often threaten to report a debt on your credit report if you don’t pay,
which they cannot usually do.  This type of debt is often well
past the allowable time for reporting on your credit file under the
Fair Credit Reporting
Act.  Alternately, collection agencies will promise to
delete an entry on your report if payment is made, when in fact the
account was not reported in the first place.  Lastly, it is
important to view your credit report to make sure the collector
does not try to report the debt by re-aging the account to make the
debt “viable” or within the statute of limitations or report the
debt as new.  Either way, should an account appear on your
credit file as a collection effort, make sure
to dispute the information with the credit reporting
agencies.

Should you feel a collection agency is coming after you trying
to collect “zombie debt” contact
SmithMarco P.C. for a completely free
consultation.