What Is Zombie Debt?
Let me explain zombie debt to you directly: it's debt that has dropped off your credit report, but for some reason, collectors are still chasing it. You've probably forgotten about this debt long ago, and it's likely been written off as uncollectible. Yet, it can come back to life if a debt collector decides to pursue it again, even when it's too old to legally enforce.
Key Takeaways
Understand this: zombie debt is beyond the statute of limitations for collection, meaning you aren't legally required to pay it. Even so, debt collection agencies might try to bring it back from the dead by pressuring you. They can be aggressive and unethical in their efforts, but remember, there's no obligation on your part to settle it.
How Zombie Debt Works
Zombie debt typically involves debts over three years old that you've either forgotten, already paid, or that belong to someone else entirely. It might stem from identity theft, a simple computer glitch, or even a fake claim on a nonexistent debt. The original creditor usually gives up and sells it to a collection agency, and these agencies aren't always scrupulous—they'll make harassing, threatening calls to get what they want.
Statute of Limitations
In most states, the statute of limitations for collecting debt runs three to six years, and it's even shorter in some places. After that period, the debt remains valid in a technical sense, but you have no legal duty to pay it. These collection companies buy up these debts cheaply and play the odds—they only need a handful of people to pay to turn a profit.
If you're targeted, be cautious. There's no upside to paying zombie debt because even a partial payment resets the statute of limitations, puts the debt back on your credit report, and opens the door for the collector to sue you.
What to Do If You Are Contacted About Zombie Debt
You have protections under the Fair Debt Collection Practices Act (FDCPA), which curbs how third-party collectors can behave, limiting when and how often they contact you. Don't waste time talking to them on the phone—get their address and send a certified letter within 35 days disputing the debt and demanding proof that you owe it.
If they keep contacting you, send another letter stating they can only reach you in writing or to notify you of a lawsuit. If the debt is past the statute of limitations, they'll likely back off.
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