Have you received a notice from a Debt collector insisting you owe a debt long forgotten, long paid, or perhaps you’d never heard about?

You may be the victim a Zombie Debt Collector!

Are you being told that even though you don’t remember, paid or never heard of this debt, a debt collector is willing to make a deal with you? Pay us half of what you owe (plus fees of course) and we’ll call it a day.

The Zombies are after you.

This article is available via one of the best resources for people who are inclined to challenge banks, debt collectors, or any aspect of consumer relationships, NOLO.com.

One of the most important pieces of advice anyone will give regarding debts is not to acknowledge the debt in any way and never agree or begin to make payments on any portion of a debt that is over six years old (MA statute of limitations – if you don’t live in MA check your state here). Of course there are exceptions to that rule, taxes, child support, mortgages, school loans, criminal fines etc, but if a debt collector is perusing you for something else that is past that statute of limitations, it has been written off by the original creditor and sold to a “debt scavenger.” Any agreement to pay might actual start the statute of limitations clock again.  

… and as always, if you feel you are a victim of one of these debt collectors, FILE A COMPLAINT, FILE A COMPLAINT, FILE A COMPLAINT.  It is the only way the authorities will know who they are and how they operate, and will ultimately help protect others.

From the NOLO article, Debt Collectors and Zombie Debt:

What Is Zombie Debt and Who Are Debt Scavengers?

The term “zombie debt” is used to describe debt that is very old or no longer owed. In short, it’s debt that has come back from the dead to haunt you. Zombie debt is typically purchased from the original creditor (or even from another debt collection agency) for pennies on the dollar. The debt collectors, who are “scavenging” for debt, then try to get the consumer to pay the debt.

Lately, the incidence of debt scavenging has risen dramatically. Both established Wall Street investors and fly-by-night debt collection companies have bought delinquent debt in bulk. The older and less collectible the debt, the cheaper it is to buy — scavengers often pay less than a penny for every dollar of debt. So, these collectors can make money by collecting even a small portion of the debt. small portion of the debt.

And my advice is, once again, do not speak to anyone about a debt like this over the phone. GET IT IN WRITING. If someone is calling you, tell them to stop calling, that you are aware of your rights and you want any communication in writing and hang up. The tactics used by Zombie Debt collectors are well-honed and conversations can lead to harassment.

According to NOLO:

Zombie debt collectors and debt scavengers often use illegal or questionable tactics to get consumers to pay old debts. Often, the goal is to trick the consumer into making a payment on a debt for which the statute of limitations has run. By making a payment — no matter how small — the consumer resets the statute of limitations on the debt and that lets the collector sue to collect the entire debt. This is why zombie debt collectors work hard to get you to pay a portion of the debt.

For more about the tactics used read the article.

FILE A COMPLAINT! 

FILE A COMPLAINT! FILE A COMPLAINT!  The only way to stop the Zombie Scavengers and protect other from tactics that are illegal in many states, is to file a complaint.  You need to contact your own state’s attorney general consumer protection department to accomplish this – here: https://www.usa.gov/state-consumer.

And remember this, a well-written response that refers to the Fair Debt and Collections Act, even in general, will often stop the Zombies in their tracks. Your letter should be written to the owner or manager of the company, declare you do not acknowledge the debt in question and insist that the company cease and desist.  It is important to note that even though a cease and desist letter is effective, if the debt is within the statute of limitations it might keep you in the dark about further actions. For more on this see: Should I tell a debit collector to stop contacting me?