Dealing with ‘zombie debts’ takes patience

If the term “zombie debts” makes you think of debts that don’t die, that come creeping eerily back into your life, you’re right.

The debt collection industry has accelerated a game it’s played for a long time. It buys old debt and seeks to make money on it. Often debt collectors pay only pennies on the dollar for the account, so the profits, if they collect on the debt, are enormous.

Pushed by that potential profit, debt collectors aren’t above breaking the law. A lot of what they do is illegal, and their tactics account for the majority of complaints received by the Federal Trade Commission.

Some of the tactics include sending false information to the collection bureaus about you and the date the original debt was incurred, hassling your friends and relatives, threatening violence, calling at all hours, attempting to collect on paid debts or ones that were discharged through bankruptcy, threatening to sue even if the statue of limitations has passed, and bothering you at work. All of these things are illegal.

“Care must be taken in dealing with these companies. By law they must prove in writing that you incurred the original debt. Chances are, if the debt is old, they don’t have that information, and attempts to collect must stop.

“Don’t talk to them on the phone, after getting their name, address and phone number. Tell them to send you a letter proving that the debt is yours.

“If you receive a dunning letter, send them certified mail within 30 days asking that they furnish proof in writing. Be sure to state in the letter that the letter does not constitute an admission that the debt is yours.

“Don’t agree to make a small payment in settlement because that starts the meter running again on the length of time a debt can be collected, and they’ll go after the full amount.

“Call your state attorney general’s office and ask for the statute of limitations, because it varies by state.

“If a zombie debt collector has you in its clutches, check your credit reports to make sure no false information has been left there. If you find any, contact the credit bureaus. If you’re being harassed, contact the FTC and your state’s attorney general.