Zombie debts - How to stop collectors from reviving it

If somehow you've owned a debt account in the past that you couldn't pay, it is possible that now it might be written off as "uncollectible debt." The creditor might have lost all hope and stopped collecting the debt as they can't reach you or can't collect the money from you.

But, in recent times, a new group of debt collectors has started to buy these old debts and also trying to collect them from the borrowers. These debts are named as "zombie debt."

Zombie debt is normally an old debt, which has crossed the statute of limitations of that debt and expired. But a debt collector may contact the borrower and ask for payment again, even if it is expired. These debt collectors are normally called debt scavengers, who buy old debts from the original creditors at a low value, and then start poking the borrower to pay up.

The best way to deal with a zombie debt creditor is to stay away from them. You should not attend their call. Don't provide any information to them. This way they won't be able to renew the statute of limitations, and they will be forced to surrender.

Under 15 U.S.C. § 1692g, a collector is required to send you a written notice within five days. Ask the collector to send you information regarding the debt through certified mail with the return receipt. The letter should include the following:

• Amount of debt
• Last date when you paid the debt
• Name of the debt collector

If a collector's validation letter doesn't have proper documentation then you can inform the collector that they are violating the U.S. Fair Debt Collection Practices Act. You can complain to the Federal Trade Commission or sue them.

You can ask the collector if your debt is past your state's statute of limitations for collecting debts. If it is past the statute of limitations, he can't sue you for collecting the amount. But whenever you are asked such a question, make sure you never express your intention to pay them. If you voluntarily pay it, such debts may get a new life!

Every state has laws about the time that a person can sue you to collect a debt. If the statute of limitations has passed, that means the debt is "time-barred," so creditors can't take legal actions for collecting the debt. However, they can contact you to collect the money you owe.

Ask for the name and address of the company. You should do a Google search of the debt collection company. Read reviews about the company before putting your trust in them. There are lots of non-genuine firms out there, so don't fall into the trap of their schemes.

Never admit the debt. Never offer immediate payments in exchange for stopping the phone calls. Never reveal your sensitive financial information as these may be a scam. People often do these foolish things to get rid of these debt collection calls. But in the end, they become helpless victims of zombie debts.

You should check your credit reports from the three credit reporting bureaus – Experian, Equifax, and Trans Union. If a zombie debt collector illegally reports against you, then immediately file a dispute with each credit bureau.

The FDCPA rules state that debt collectors cannot contact you before 8 a.m. and after 9 p.m. They cannot even call you at work if you've told them that your employer restricts such calls. Debt collectors are not allowed to speak to your neighbors or any third party about your debt.

If you want to stop them from calling you, just send a letter according to 15 U.S.C § 1692c. Once they receive your letter, they cannot contact you unless they send you a copy of a lawsuit. If the collector continues to call you, then file a complaint to the attorney general.

If the debt collector sends you a summons and complaint, read every page carefully. Learn where the court is, what are the charges, and the timeframe to respond to the summons. Fill up an "answer" and challenge the creditor. If you don't respond to the summons you forfeit your right to defend yourself. The creditor will use this as a weapon, and as a result, you'll see an entry in your credit report.

If a debt collector bothers you too much, then you can consult a consumer protection lawyer or a debt relief lawyer to sort out your problem. In my opinion, you should take the necessary step to save yourself from harassment and mental stress.