BBB: Zombie Debt

The best way to check for zombie debt is by doing a thorough investigation. Search through old records to find bank statements and notices of payment.
Published: Nov. 6, 2023 at 7:32 AM CST
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MONROE, La. (KNOE) - Zombie debt is a topic that affects many people, and today Jo Ann Deal from the Better Business Bureau joined Good Morning ArkLaMiss to discuss what you need to know about this type of debt.

Zombie debt is a debt that is “raised from the dead.” When someone does not pay a debt, the lender will take action by phone or letter to collect the money you owe. Deal says the debt can sometimes be renegotiated or discharged completely.

Some of the most common scenarios of zombie debt are:

  • Unpaid debts beyond the statute of limitations when you can be taken to court
  • Unpaid debts you owe but forgot about
  • Unpaid debts wiped out with bankruptcy
  • Debts you already settled with the creditor
  • Fraudulent charges from identity theft
  • Fake debts “creditors” claim you owe as part of a scam

Deal says the Fair Debt Collection Practices Act (FDCPA) requires the debt collection agency to provide you with written proof of the debt’s validity or a judgment against you, as well as the name and address of the original creditor if the debt was resold. Once this information is gathered, determine if the debt is really yours and if it still needs to be paid.

If you determine the debt was yours, but you already paid it, write a letter to the collections agency and demand that they cease contact. Include proof of payment if available. The collections agency is legally required to stop contacting you under the FDCPA.

If you would like to make an appointment with the BBB to discuss zombie debt, contact them at (318)-387-4600.