Worst Zombie Debt Collector Practices
The following list, reported by many consumers to be among the worst practices by Zombie Debt Collectors includes but is not limited to, some of the illegal activities used to attempt zombie debt collection from you:
Suing or threatening to take a debtor to court over debts even though the statute of limitations has long expired.
Illegally 're-aging' or reporting old debts on credit reports. Zombie debt collectors may attempt to tell credit bureaus that an old debt is a new one which extends the seven-year limit on reporting negative items and puts the debtor under even more duress, pressuring him or her to pay.
Promising if payment is received, a negative mark will be removed from the consumer's credit report. Not only does the collector fail to follow through, but the payment can revive the statute of limitations, which was up prior to this activity, and lead to a lawsuit. The unpaid debt could once again be sold to another company that might renew collection activity.
Verbally abusing and harassing consumers.
Paying a zombie debt could potentially damage or do further damage, to a consumer's credit score and show up on your credit bureau reports. This type of payment can update a delinquency so that it looks more recent and takes a heavier toll on a credit score.
Agreeing to pay a zombie debt is also no guarantee that the horrific calls and letters will stop. The collector may decide that if you’re willing to pay at all, you could be made to pay more or all of the debt. If you do agree to settle a debt for a smaller amount than the zombie debt collector says you owe, it could result in collection efforts by another agency trying to collect the portion that remains unpaid.
Even if you get the collector to promise in writing that none of the above will happen, you would have to be willing to go to court if the agency reneged; and possibly face an unsympathetic judge or one who doesn't know much about collections law.
If you're being contacted about a Zombie Debt there are several things you can do;
Learn about your State's Statutes of Limitations. If your zombie debt was acquired in another state, check the state statute of limitations there as well. But generally it's the statute of limitations in your current state that applies. If the statute has indeed expired, the collection agencies' legal remedies are limited.
Know your legal rights. Contact a Fair Debt Attorney who is knowledgeable in the areas of zombie debt and your rights under the Fair Debt Collection Practices Act can be an extremely complicated area of the law. If the amounts at stake are considerable or the level of harassment unbearable; consider an attorney.
If the statute of limitations has expired, don’t let the debt collector pressure you as you could inadvertently extend the statute of limitations or find yourself duped into a repayment agreement that might not be in your best interest.
Write a letter demanding the agency stop contacting you about the Zombie Debt. Send it certified mail, return receipt requested. Under the FDCPA they are required to comply with your request. Make certain that you do not specifically acknowledge in the letter itself that you actually owe the debt.
If the statute of limitations hasn't expired, you may want to negotiate a settlement rather than risk a lawsuit, contact a Fair Debt Collection Lawyer today for a free consultation.
If the collector persists in its deception, you can demand that the collector produce a copy of the documentation that created the debt, such as the credit card agreement you originally signed, along with an account history. Chances are the collector won't have this documentation, and continuing to report the account without providing proof that you owe the money is a violation of the Fair Debt Collection Practices Act.
