Zombie Debt: What it is & how to get rid of it

When you hear the term “Zombie Debt” it refers to an old debt purchased by debt collectors hoping they can intimidate consumers into paying the debt. In the past, few creditors attempted to collect on old debts thinking it was not worth the effort. Today, however, aggressive debt collectors are buying these charged off debts for pennies on the dollar and using credit-scoring and other tactics to determine those debtors most likely to pay. If you are contacted by a collector about an old debt, do not give in immediately to their tactics, know your rights and use the following tools to fight back.

Illegal and Unfair Debt Collection Tactics

Fair Debt Collection Attorneys have seen a wide variety of collection tactics that are illegal and constitute harassment under the law. The following are a few to look for if you are contacted by a collector.

• Verbally abusing or harassing consumers using inappropriate language, calling repeatedly, calling friends and family, and/or calling at inappropriate times despite repeated requests to stop. These are in violation of federal laws.
• Contacting consumers for payments on debts they do not owe, have already paid, or that were legally erased in bankruptcy court.
• Suing or threatening to sue over a debt that is past the statute of limitations.
• Promising to delete a negative mark from the consumer’s credit report in exchange for a token payment. Then the collector fails to follow through, but the payment revives the statute of limitations and can lead to a lawsuit. Even if the collector does back off, the unpaid debt could be sold to another company that might renew collection activity.

How to fight back

If you feel that you are being contacted about a zombie debt, a debt that is past the statute of limitations, or you are being harassed by a debt collector, here is what most attorneys would advise:

Know the statute of limitations. Know and understand the federal debt statute of limitations and also check the statute of limitations in your state. If the debt has expired, the collection agencies’ legal remedies are limited.

Log all phone communications. Whether a collector is calling you or sending letters, keeping a detailed communications log will act as proof of harassment. A sample phone communications log can be found here. You may also find it helpful to record the abusive phone conversations. Beforehand though, you must know the laws of your state about recording telephone calls.

Write them. On this website you’ll find a variety of letters from debt cease and desist letters to letters helping you dispute the debt or combat the statute of limitations. There is also a team of associated attorneys who can help you fill out and send these letters. Federal law requires debt collectors to comply with your request(s).

Know your rights. Credit and debt collections can be extremely complicated. Many attorneys will offer a free case review because in the event that you do have a case, their fees will be covered by the offending collector.
If the collector persists in its deception, contacting an experienced fair debt collection attorney may prove the most helpful.