Think you don’t have to worry about zombie debt because you pay your bills so it can’t happen to you? Think again… because it recently happened to ME!
It all started out with a phone call just before dinner. A fast-talking man on the other end of the phone breathlessly told me he would be filing a collections lawsuit against me as soon as the courthouse opened tomorrow morning. Armed with just enough personal information… a cell phone number, partial Social Security number, and a very old address… he said I owed several thousand dollars on a well-known bank credit card.
I knew I didn’t owe that amount now and was sure I had not owed it in the past. In checking with my wife, we realized we did have a card from that bank when our child was quite young but had paid it off long ago. For the record, our daughter just turned 30! So, there was no quick way to go back and check my records.
Since I know my rights, I demanded to see written proof of the debt. He exclaimed we had been contacted and supplied with the info numerous times in the past, and they were no longer obligated to provide it at this point. He told me my only remedy to avoid an imminent lawsuit was to agree to a settlement amount, sign off on a waiver due to no documentation involved, and provide my bank account information so they could draft my account. After withdrawing the funds, he said they’d provide me with a paid receipt via email. After he tried unsuccessfully to lower the amount due to get me to agree to pay, I hung up. They actually called back twice more to continue the conversation, but I continued to hang up. Of course, no lawsuit was ever filed.
Introduction: The Rise of Zombie Debt
Welcome to a world where old debts rise from the grave, known as zombie debt. It’s a chilling reality for many in the USA and Canada. This article will shine a light on these shadowy figures and arm you with knowledge to protect your financial well-being.
In this article I claim that zombie debt is also a scam, because it meets many of the definitions of a scam, including:
· Involvement of strangers contacting someone for money
· Insufficient available proof of the alleged debt
· Intimidating and harassing pressure to pay immediately
· Demands to provide personal bank account information
Definition:
Zombie debt is a term that sounds like it’s straight out of a horror movie, but it’s a real problem. It’s old debt you thought was long gone, perhaps forgotten or even settled, but it suddenly reappears. These debts can include credit card bills, medical bills, or even past due utilities. Usually, they don’t show on your credit report. Debt collectors purchase these old debts, often for pennies on the dollar, and try to collect money from you, even though your legal obligation to pay may no longer exist. These attempts to collect are frightening to consumers and a form of harassment by collectors.
Challenges and Issues: Dark Side of Collections
1. Expired Time Limits: A Race Against the Clock
Known as the statute of limitations, debt collection has a deadline in every state in the U.S., as well as each Canadian province. Once this period expires, collectors can no longer legally force you to pay. However… not all collectors play by the rules. They may still pursue these old debts, hoping you are unaware of your rights. Once the statute of limitations window closes, your overdue debt becomes “time-barred.” If your debt is time-barred, a debt collector cannot take you to court to collect the money because this would break the law.
- USA: Each state has its own statute of limitations, which can range from three to ten years.
- Canada: Similarly, Canadian provinces have varying time limits, typically ranging from two to six years.
2. Messy Records: A Paperwork Nightmare
Having purchased old debt in bulk or via computer records, debt collectors often have incomplete or inaccurate records. They don’t always have their facts, or their paperwork, straight. They might chase you for a debt you’ve already settled, don’t recognize, or one that is not even YOUR debt. Even if these amounts were originally your debt, they may already be paid, or were discharged in bankruptcy. This can lead to a confusing and frustrating challenge to even determine the validity of the debt.
3. Scary Calls and Letters: The Fear Factor
Debt collectors can be persistent, using intimidating tactics like incessant calls or threatening letters. They will claim you have already been notified of this debt and refuse to provide you with written proof of the debt. They can threaten to file a lawsuit if you do not settle immediately. This psychological pressure can be overwhelming, especially if you’re unsure about the legitimacy of the debt and feel you do not have sufficient time to react. Collectors count on those factors to disorient you and have you make unwise decisions.
Solutions for Protection: Vanquish the Zombies
1. Check the Clock – Know Your Rights
Your first line of defense is knowing the statute of limitations on debt in your jurisdiction. This knowledge is crucial in preventing collectors from reviving dead debts. Arm yourself with knowledge about the time limits for debt collection in your area. This is your protective shield against paying debts you no longer legally owe.
2. Ask Questions – Get the Facts
When a collector contacts you, be bold and speak up for yourself. Ask for detailed information about the debt. Legally, they must provide this in writing within five days. The information must include the amount of the debt, and to whom it is owed, along with other account information. This is your chance to verify whether the debt is legitimate or a zombie debt and help you cut through the confusion and intimidation. If they fail to provide proof, the debt could become unenforceable even if it is valid.
3. Stop the Calls – Exercise Your Rights
Assert your cease-and-desist rights. You can legally request debt collectors in writing to stop contacting you. This won’t erase the alleged debt, but will silence all the calls and letters, giving you peace.
Rules for Collectors: Laws that Protect You
Deceptive practices by collectors are not allowed, and fair play is a requirement. Harassment of consumers can trigger penalties on collectors. U.S. and Canadian laws protect consumers from abusive collection practices. They are not allowed to deceive, harass, or threaten you. Knowing these rights can help you stand your ground against unfair tactics.
Conclusion: Be the Hero in Your Financial Story
Zombie debt might sound like a chapter from a horror book, but you have the power to close it. Know your rights, ask the right questions, and use the power of your rights to stop the harassment. With knowledge as your weapon, you can face these financial ghosts with confidence and peace of mind… once and for all.
Your Turn: Share Your Story
Have you ever faced a zombie debt? How did you tackle it? Let’s start a conversation and share our strategies in battling these financial nightmares!
Thank you for being a part of this journey. I look forward to connecting with you. Together, we will redefine cybersecurity, making it accessible, comprehensive, and universal.
Cheers, Jeff
