The term “zombie debt” means the debt is very old and no longer owed. Zombie debt is purchased possibly from the original creditor or from another collection agency for cents on the dollar. Debt scavengers try to revive a zombie debt which the statute of limitations are expired on the debt. They use every intimidating tactic to revive the old debt by persuading the consumer to make a payment. If the debt scavenger continues to persuade you that you must make a payment on an old debt that expired ask for the “validation of debt”
Check Statutes of Limitations
Please check the statute of limitations by your state, most likely if it is a zombie debt, it past the statute of limitations time. The goal of a debt scavenger is obtaining a payment from the consumer. Once you make that payment you will reactivate the statutes of limitations and you will re-activate the debt that expired per your state laws. For example: A past client had an old membership debt from 1999, the collection was paid shortly after that year. In 2018, my client was notified by a debt scavenger who wanted to reactivate the debt. My client stated the collection was paid to a collection agency in 1999, the scavenger went on about pursuing a lawsuit.. My client informed me and I instructed her to tell the debt scavenger the statutes of limitations by the state are expired. Luckily, when my client informed the debt scavenger that he cannot collect because of the expired statutes of limitations, he stopped calling.
Don’t Be Afraid of Threats
Most of the time they state “there is an attorney at our office, you will receive legal documentation from us….. just need to verify your address..” There are no attorneys involved when it comes to debt scavengers collecting on zombie debt, this is just an intimidation tactic. You can do two things to stop the zombie debt of being reactivated: Again, ask for the “validation of debt” or you may contact your business attorney and he can dispute the zombie debt on your behalf.
For more information on how we can help you with your personal debt or distressed business debt in the South Florida and Southwest Florida please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what our valued clients have to say about First Pro Capital and Credit Consulting Professionals on our Testimonials page.