Zombie Debt - What it Does to Your Credit

What is zombie debt?

Zombie debt is an umbrella term that encompasses several types of bad credit loans, including unpaid medical bills, utility bills that are not paid on time, and old credit card balances. These types of loans can all negatively affect your credit score and cause other negative effects on your credit reports. If you’re having trouble paying back your debts, contact a reputable organization or service like LoanPayday.com for help getting back on track.

Resolving zombie debt as soon as possible is crucial by reaching out to the lender and setting up a negotiated payment plan or proving the debt is invalid. Zombie debt can impact your credit score negatively and cause other issues if left unresolved. Zombie debt is an old debt sold to a third party. Zombie debts are typically sold for pennies on the dollar from the original credit and repeatedly sold to collection agencies over and over in hopes of collecting.

How do I know if I have zombie debt?

The first step in dealing with zombie debts is to find out if you have one. You can check your credit report for any accounts sent to collections agencies or law firms. The next step would be determining who owns the debt and how much you owe them. Once you know who owns the account, you need to contact them and negotiate a settlement deal or prove it’s uncollectible so they will stop trying to collect on the account.

What are zombie debt sellers?

Zombie debt sellers are businesses that purchase debt from creditors for pennies on the dollar and then attempt to collect on that debt, often using aggressive and deceptive tactics. These businesses often target low-income individuals and families struggling to make ends meet.

The zombie debt industry is a very murky industry that operates in the shadows. These companies buy old debts for pennies on the dollar and then unleash their attack on the debtor. They contact the debtor with threats, incessant phone calls, and false legal letters to scare them into paying up.

Zombie debt sellers often use scare tactics to coerce people into paying debts they may not even owe. They may threaten to garnish wages or file lawsuits if people do not pay. These tactics can be especially effective on low-income individuals who may not have the resources to fight back.

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting debts. However, many zombie debt collectors operate outside of the law.

If a zombie debt collector contacts you, you should know that you have rights. You can request that the collector stop contacting you. You can also dispute the debt. If you believe you do not owe the debt, you can request proof of the debt from the collector. If a zombie debt collector is harassing you, you may want to contact an attorney. An attorney can help you understand your rights and options.

Zombie debt cease and desist letter

A zombie debt cease and desist letter is a letter that you can send to a collection agency demanding that they stop trying to collect a debt that is no longer valid. This type of letter is also sometimes called a "zombie debt validation letter."

Suppose a collection agency has contacted you about a debt you do not believe you owe or a debt that is so old that it is no longer legally enforceable. In that case, you can send a cease and desist letter demanding that the agency stop trying to collect the debt.

There are a few different reasons why a debt might no longer be valid, such as:

• -The statute of limitations has expired. This is the time period during which a creditor can legally take action to collect a debt. Once the statute of limitations has expired, the creditor can no longer sue you or take any other legal action to collect the debt.

• -The debt has been discharged in bankruptcy. If you file for bankruptcy and the debt is included in your bankruptcy proceeding, it will be discharged, and the creditor will no longer be able to try to collect it from you.

• -You have already paid the debt. If you have paid the debt in full or through a payment plan, the creditor should no longer be trying to collect it from you.

• -The debt is not yours. If the debt is not yours, the creditor should not be trying to collect it from you. If you have been contacted by a collection agency about a debt that you believe is not yours, dispute it immediately.

How zombie debt collectors trick you

There are a number of ways that these collection agencies can trick consumers into paying zombie debt. One common tactic is called "phantom debt." This is when the collection agency contacts the consumer and tells them they owe a debt but provides very little information about it. The consumer is then pressured into paying the debt without ever knowing what it was for.

Another tactic used by collection agencies is called "debt validation." This is when the collection agency contacts the consumer and asks them to provide proof that they do not owe the debt. The problem is that the collection agency often has very little information about the debt, so the consumer may end up providing information that the collection agency can use to validate the debt.

Lastly, collection agencies may try to intimidate consumers into paying by making threatening phone calls or even sending threatening letters. It is important to remember that you have rights under the Fair Debt Collection Practices Act, and collection agencies cannot use abusive or threatening tactics to collect a debt.

If a collection agency about a debt contacts you, you should ask for verification of the debt. Once you have received verification, you can decide whether to pay the debt. If you do not believe you owe the debt, you can send a "cease and desist" letter to the collection agency, telling them to stop contacting you.

I think I revived a zombie debt

If you made arrangements with a collection agency to repay an old debt, you may have renewed the statute of limitations. Be sure to check your state laws because some states have a rule that simply agreeing to repay the zombie debt will restart the statute of limitations.

Do not talk to collection agencies on the phone, it’s recorded. Only communicate in writing but do not put a promise to pay in writing. If the debt collector did not advise you that the debt was expired when they tricked you into payment arrangements, contact an attorney and see if it was a violation of state credit protection laws not to disclose it.

Zombie debt on your credit reports

According to the Federal Trade Commission, "zombie debt" is debt that's been unpaid and outstanding for a long period of time, typically seven years or more. This type of debt can negatively impact your credit score and make it difficult to obtain new lines of credit.

If you're contacted by a collection agency about a debt you're not sure is yours, you can request documentation to verify the debt. If the debt cannot be verified, the collection agency may not be able to take legal action against you.