Consumer Law

How to Deal with Zombie Debt

By Kemnitzer, Anderson, Barron, Ogilvie & Brewer

WikiHow, a how-to-manual that you can edit, has excellent advice on dealing with zombie debt-old debts that cannot legally be collected through lawsuits. Companies buy the debt for pennies on the dollar and then use nefarious tactics to get consumers to pay. Tactics include harassing calls, threats to sue, and re-aging the debt (faking the date of last activity on the account) so as to report the debt on the consumer's credit reports.

WikiHow outlines steps to take and not take. For example, don't acknowledge the debt, do not make a payment on the debt, ask for proof the debt collector was assigned the debt (they may not have any proof), and ascertain if the statute of limitations has run. In California, the consumer has a defense if it has been more than four (4) years since there was activity on the account.

Full post as published by California Credit Law Blog on November 20, 2008 (boomark / email).