What Is Zombie Debt?

What Is Zombie Debt

Zombie debt refers to old debts that are no longer legally collectible, but are still being pursued by collectors. These debts may have passed the statute of limitations or have been discharged in bankruptcy, but collectors may still try to collect on them. It's important to know your rights as a consumer and to be aware of any attempts to collect on zombie debt, as they may be illegal or fraudulent.

There are a few ways that consumers can protect themselves from collections attempts on zombie debts:

1. Understand their rights: Consumers should familiarize themselves with the Fair Debt Collection Practices Act (FDCPA), which outlines guidelines for debt collectors and protects consumers from abusive and harassing practices.

2. Verify the debt: If a consumer is contacted about a debt that they do not recognize, they should request verification of the debt in writing. Collectors are required to provide this information within five days of initial contact.

3. Dispute the debt: If a consumer believes that a collector is attempting to collect on a zombie debt, they can dispute the debt in writing. The collector must cease collection efforts until the debt has been validated.

4. Seek legal advice: If a consumer is being harassed or threatened by a collector, they may want to consult an attorney who specializes in consumer protection law.

What Do Debt Collectors Do With Zombie Debt?

Debt collectors may buy zombie debt for a fraction of the original amount and then attempt to collect on it. They may use aggressive or harassing tactics to try to get consumers to pay, even if the debt is no longer legally enforceable. It's important for consumers to know their rights and to be careful when dealing with debt collectors, especially when it comes to zombie debt.

There have been recent changes in laws regarding debt collection practices. In 2021, the Consumer Financial Protection Bureau (CFPB) issued a new rule that addresses debt collection practices and prohibits certain abusive and harassing tactics used by debt collectors.

Consumers can stay informed about these changes by regularly checking the CFPB website for updates and by consulting with a consumer protection attorney if they have any questions or concerns. It's also important for consumers to continue educating themselves on their rights under the FDCPA.

What is the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the behavior of debt collectors who are attempting to collect debts on behalf of creditors.

The FDCPA prohibits practices such as harassment, using false or misleading statements, and making threats against consumers. It also provides consumers with certain rights when dealing with debt collectors, such as the right to request validation of the debt and dispute the debt. If a debt collector violates the FDCPA, consumers have the right to file a complaint with the Consumer Financial Protection Bureau (CFPB) or consult with an attorney who specializes in consumer protection law.