Zombie Debt is OLD Debt
Zombie Debt is debt that has been dead and gone for a LONG time now. This is debt that hasn’t had any activity for over 7 years. Activity is when you make a payment, you missed a payment, or the balance increased.
Check Your Credit Report
Zombie Debt cannot be added to your credit report or should have already dropped off of your credit report if it was already on there. If you notice debt on your credit report that should have already fallen off, report it to the credit bureaus. Check the Transunion, Experian, & Equifax websites to see how to report old debt.
Read The Ultimate Guide to Understanding Your Credit Report here.
Check Your State Law
In most cases, the statute of limitations has also expired, meaning that the creditor or a collections agency cannot take you to court for it. Check your local laws to learn about the statute of limitations in your state
Don’t Resurrect Zombie Debt
Do NOT pay Zombie Debt if the statute of limitations has expired in your state. If you make a payment or promise to make a payment and miss it, the debt counter goes from 7+ years to 0! This means that now it CAN be added to your credit report and it may start the statute of limitations over as well, which means they may still be able to sue you over the debt. DO NOT let that happen! Do not let a zombie that is dead in its grave come back to life. Never make payments or promise to make payments on Zombie Debt.
Collections Calling You About Zombie Debt?
Collections agencies will often buy Zombie Debt from creditors or other collection agencies for PENNIES on the dollar. They then hope to scare consumers into paying old debts that they, in most cases, no longer are legally obligated to pay.
Here’s what to do If you are getting collections calls about Zombie Debt:
1. Don’t Panic.
You and you alone are in control. Do not let a creditor or collections agency call scare you.
2. Make it stop.
Tell the collections agency to stop calling you and to remove your number from their list. Under the Federal Debt Collections Practices Act, the collection agency must stop calling you when you tell If they call you again, report them to the federal Consumer Financial Protection Bureau here.
3. Know your dates.
Know when your account went into default so you know if it can still be added to your credit report and if the statute of limitations is up.
4. Know your rights.
It is abusive for a collections agency to threaten legal action or a lawsuit or to threaten to call your work or bosses. If a collections agency threatens to do any of these things, make sure you know the name of the collections agency and report them to the federal Consumer Financial Protection Bureau here.
5. Don’t Resurrect the Zombie.
NEVER pay or promise to make a payment on zombie debt. This will resurrect debt that is dead. If you resurrect Zombie Debt, it can show back up on your credit report. Let it stay dead and buried.
Don’t let Zombie Debt and collections call get you down. YOU are in control! YOU are Brilliant!